Frequently Asked Questions About Mason's Earnings Taxes

What is Mason's earnings tax rate?
The tax rate is 1%. In 2006 and prior years, residents employed in another city that had an earnings tax received a maximum credit of up to 50% of the tax due on the portion of their earnings taxed by the city where employed. For tax year 2007, residents employed in another city that has an earnings tax will receive a maximum credit of up to 65% of the tax due on the portion of their earnings taxed by the city where employed. The maximum credit will be 80% of the tax in 2008 and 90% of the tax in 2009. In tax year 2010 and beyond, the maximum tax credit will be up to 100%. Even if no tax is due, you will still be required to file a return.

How does the amount paid by residents compare to the amount paid by businesses in Mason?
For every dollar in earnings taxes paid by residents, $4 is paid by businesses in Mason. The earnings tax supports most city services: police protection, parks and park programs, maintenance of roads and facilities, services provided to residents, publications, and more.

Over the past decade, the proportion of earnings taxes paid to the city by individuals compared to the amount paid by businesses has changed dramatically. In 1989, individuals contributed 41% of total taxes paid. Ten years later, individuals contribute only 22%. This is a reflection of the city's growing business community supporting an increasing share of the cost of services provided to residents.

Will I owe property taxes to the city?
Because of the healthy business community in Mason, there is little need for city property tax levies for special needs other than the Fire Department. This is why homeowners in the City of Mason receive excellent city services while paying lower city property taxes than homeowners in many other areas of southwest Ohio.

A significant portion of the property taxes paid by property owners in the Mason City School District goes to the school district.

All property taxes are collected by the Warren County Auditor.

Do I pay taxes on the full value of my home?
You pay taxes based on a percentage of the assessed value of your home. The assessed value is 35% of the estimated market value of your home.