Living in Geneva, Ohio, can offer several benefits such as affordable housing, a family-friendly atmosphere, and access to numerous outdoor activities. However, understanding the local taxes is crucial for both residents and businesses. This guide aims to provide an overview of the various taxes in Geneva, Ohio, so you can better understand your financial obligations.
Property taxes are typically the most noticeable tax for homeowners in Geneva, Ohio. The Ashtabula County Auditor’s Office assesses property values and collects property taxes to support local services such as schools, police, and fire departments. The property tax rate is expressed in mills, with one mill equal to 1/10th of a cent. The tax rate in Geneva varies, but the average rate is around 80 mills.
To calculate your property taxes, you can use the following formula:
Property Taxes = (Property Value * Tax Rate) / 1,000
For example, if your property is worth $100,000 and the tax rate is 80 mills:
Property Taxes = ($100,000 * 80) / 1,000
Property Taxes = $8,000
Keep in mind that property taxes may change annually based on budget needs and property reassessments. You can find more information about your property taxes on the Ashtabula County Auditor’s website.
Residents of Geneva, Ohio, are subject to both federal and state income taxes. The federal income tax rates range from 10% to 37% based on income levels, and Ohio has a progressive state income tax rate ranging from 0% to 4.797%.
In addition to federal and state income taxes, Geneva residents also pay a local income tax. The local income tax rate for Geneva is currently 1.5%, and it applies to wages, salaries, commissions, and other earned income. The tax is administered by the City of Geneva Income Tax Department.
To calculate your local income taxes, use the following formula:
Local Income Taxes = Taxable Income * Local Tax Rate
For example, if you earn $50,000 in taxable income:
Local Income Taxes = $50,000 * 0.015
Local Income Taxes = $750
When you make purchases in Geneva, Ohio, you will also pay sales taxes. Ohio has a statewide sales tax rate of 5.75%. However, local jurisdictions may add their own sales taxes. Ashtabula County, which encompasses Geneva, has an additional 0.5% sales tax. Therefore, the total sales tax in Geneva is 6.25%.
Sales taxes apply to most goods and services, with some exceptions like groceries and prescription medications. To calculate the sales tax for a purchase, use the following formula:
Sales Tax = Purchase Price * Sales Tax Rate
For example, if you purchase a $100 item:
Sales Tax = $100 * 0.0625
Sales Tax = $6.25
In conclusion, understanding the various taxes in Geneva, Ohio, is essential to planning your financial future. By familiarizing yourself with property, income, and sales taxes, you can make informed decisions and ensure you are meeting your tax obligations.