Business FAQs - Net Profit Estimates - De minimis

As with the Federal Income Tax, a Municipality may require taxpayers to make estimated payments during each tax year. Beginning with tax year 2016, Ohio law requires you to make estimated municipal income tax payments if you will owe $200.00 or more to an Ohio municipality.

Estimated payments are due quarterly as follows:

1st Quarter - On or before the fifteenth day of the fourth month after the beginning of each fiscal year.

2nd Quarter - On or before the fifteenth day of the sixth month after the beginning of the taxable year.

3rd Quarter - On or before the fifteenth day of the ninth month after the beginning of the taxable year.

4th Quarter - On or before the fifteenth day of the twelfth month of the taxable year.

Yes. Beginning with tax year 2016, a business is required to make estimated payments for a municipality if the estimated tax liability for the year, for that municipality, is $200 or more for any municipality.

For example, if your estimated tax liability is $250 (estimate for City A is $100 and estimate for City B is $150), you are not required to make estimated payments because each municipality’s portion of the estimated tax liability is less than $200. 

Yes. Your business is required to make quarterly estimated payments if the tax due for any municipality is greater than or equal to $200.
Also referred to as safe harbor, for each RITA municipality municipal income tax owed, if your estimated payments are not 90% of the tax due for the year or are not equal to or greater than your prior year’s total tax liability on or before the estimated due dates, you will be subject to penalty and interest charges.