Taxation

Tax returns for 2025 are due by Wednesday, April 15, 2026.

Who Should File

Every resident 18 years old or older and not retired is required to file a City of Parma annual tax return. Residents who are not sure if they should file income tax returns or if their income is city taxable should contact the Tax Department for assistance.

E-Filing City Tax Returns

The Tax Department encourages residents to take advantage of Tax Connect. Residents can see what payments and credit they have for the current tax year or past tax years. They can also complete, file and pay city taxes online. A resident must know his or her active city tax account number to use the system. Call 440-885-8045 or email the tax office for more information.

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Master Card and Visa credit / debit cards are accepted for payment.

Residential Tax Information and Extended Hours

The Tax Department's regular office hours are Monday through Friday, 8:30 am to 4:30 pm. Hours will be extended on April 2, 7, 9, 14 and 15 between 8:30 am to 6:30 pm.

The Tax Department will prepare city income tax forms for free in person through March 31, 2026. Between April 1 and April 15, however, taxpayers will only be able to drop off their annual returns. Staff will complete returns and mail residents copies. Residents need to bring the following:

• Pre-printed tax form, which is mailed in January
• All W-2s, 1099s, relevant schedules and any other important tax documents
• Proof of payment to other cities, if necessary

Residents may also mail city tax returns to:
Tax Department,
City of Parma
6611 Ridge Road
Parma, Ohio 44129

Business Tax Information

Employee Withholding Filing Due Date

Withholding remittance and payment must be received no later than the 15th of the month following the reporting period. SB 172 changed the quarterly withholding payment due date to the last day of the month following the end of the quarter.

Monthly and Quarterly Withholding Threshold

An employer must remit monthly if the withholding in the previous calendar year exceeded $2,399 or if the amount required to be withheld during any month of the previous calendar quarter exceeded $200. An employer can remit quarterly if the withholding is under the threshold described for monthly filers.

Penalty and Interest Rates

The late filing penalty is $25 a month per return (capped at $150 per return) regardless of liability. The penalty is a one-time $500 fee for casino operators and lottery sales agents. The late payment penalty on withholding is a one-time 50 percent penalty of the unpaid balance at the time payment is due. A late payment penalty on unpaid income tax and unpaid estimated income tax is a one-time 15 percent of the amount not paid.

Interest will be calculated at the July federal short-term interest rate, plus 5 percent. See the chart below for years and rates.

ACH Credit Electronic Filing

The Tax Department offers the ACH Credit Electronic Filing Program for withholding taxes. In order to be more efficient and business friendly, we offer electronic filing for withholding taxes.

• The ACH Credit Program is available 24 hours a day, seven days a week.
  Payments are processed conveniently and accurately via an electronic funds transfer.
• To file using the ACH Credit Program, business owners should contact their banks to ensure they can process ACH credit transactions.
• To register, complete and mail or fax an ACH Credit Authorization Form (PDF).

Tax Rate

Parma's tax rate is 2.5 percent. Employers who have employees working in Parma, they or their payroll service departments must withhold 2.5 percent on all wages for Parma City income tax.

Tax Credit

Parma's tax credit for residents working outside of Parma is 100 percent credit, up to 2 percent for city taxes paid to another community. For those employers that do a voluntary withholding of residence taxes, see Chart A for rates. For assistance, call 440-885-8045 and ask for a tax auditor.

Chart A