Income Tax FAQs
- Individual income tax withholdings that support City services and infrastructure are collected from those who work in the City of Hilliard, regardless of whether those individuals live here. In 2019, 27,200 people reported working in Hilliard, and nearly 77% of those people did not live in the city. So, most income taxes are paid by non-residents!
- Of the Hilliard residents who filed local income taxes in 2019, only 23.3% worked in Hilliard and paid income taxes to the City. Most of their taxes went to other municipalities.
- Senior adults living on retirement incomes do not pay income taxes to the City. (Income taxes are only paid on earned income.)
- If you work in another city where the income tax is equal to 2 percent, you pay Hilliard nothing. If you work in a community such as Columbus, Worthington, or Upper Arlington where the income tax is higher than 2 percent, you already pay more income taxes than if you worked in Hilliard.
- COLUMBUS: 2.50%
- DUBLIN: 2.00%
- GAHANNA: 2.50%
- GRANDVIEW HEIGHTS: 2.50%
- HILLIARD: 2.00%
- NEW ALBANY: 2.00%
- UPPER ARLINGTON: 2.50%
- WESTERVILLE: 2.00%
- WORTHINGTON: 2.50%
Who pays Hilliard income taxes?
What are the income tax rates of other local communities?
MUNICIPALITY TAX RATE
What's the difference between income taxes and property taxes?
Questions about local income taxes and property taxes are commonplace for residents, business owners, property owners, and those employed within the city limits of Hilliard.
These two types of taxes are different in many ways, including how they are collected, who collects them, and what they pay for. Do you know what your taxes pay for?
It is important to know that municipal governments and school districts are separate governmental agencies with different governing bodies of elected officials.
Income Tax
Those who work within Hilliard corporate limits pay a 2-percent local income tax to the City of Hilliard. Many suburbs in Franklin County have a 2.5 percent income tax.
If Hilliard residents work in Columbus, they are paying more in local income taxes than if they work in Hilliard, because Columbus has a 2.5 percent income tax rate. Most local income taxes are collected by businesses in Hilliard withholding taxes and paying on behalf of their employees.
Local income tax is the City of Hilliard’s primary funding source, accounting for nearly 70 percent of the City’s general fund revenue. They are used to provide great City services and amenities.
If you are one of the 76.7% of Hilliard residents who don’t work in Hilliard, you probably don’t currently pay Hilliard income taxes. In fact, 77% of Hilliard’s local income taxes are paid by people who work within Hilliard’s corporate boundaries, but do not live here.
Property Tax
Property taxes are paid to the Franklin County Treasurer and stem from the value of your house, business, or land. Property taxes can be rolled into escrow by your lender when you buy a house or land. If you own your house or choose not to escrow those payments, you can pay property taxes out of pocket when you receive a bill from Franklin County each year.
Franklin County distributes your property taxes to a variety of government-funded agencies. Nearly 61 percent of your property taxes are sent to Hilliard City School District, followed by Franklin County Board of Developmental Disabilities at 6.7 percent, and Children Services at 4.6 percent.
To view the tax distribution for your house, visit franklincountyauditor.com.
How are your income taxes reinvested into the city?
Our community enjoys great services and quality of life amenities – such as snow removal, swimming pools, police, parks, bike trails, and the Senior Center – that are largely paid for by people who are not City of Hilliard residents.
As the chart below shows, 65% of City of Hilliard expenses paid for with local income taxes go toward the general fund, 25% pays for capital improvement projects, and 10% pays for annual street repairs and improvements.
