Tax Interest & Penalty Rates

Annual Interest Rates

The interest rates shall be applied to all unpaid income and withholding tax balances. These rates are being published in accordance with Ohio Revised Code 718.27(F) which states that "By the thirty-first day of October of each year the municipal corporation shall publish the rate described in division (A) of this section applicable to the next succeeding calendar year."

The interest rate is calculated by adding five percentage points to the federal short-term rate (rounded to the nearest whole number %) that was in effect during July of the current year, in accordance with Ohio Revised Code Section 718.25(A)(5), and is applicable to tax years beginning on or after January 1, 2016.

Based on these requirements, the applicable interest rate is as follows:

Calendar Year Monthly Interest Rate Yearly Interest Rate
2020 0.58% 7%
2019 0.58% 7%
2018 0.50% 6%
2017 0.50% 6%
2016 0.42% 5%
2015 and Prior 1.00% 12%

Penalty & Interest

Penalty and interest is charged on all late and unpaid income and withholding tax, late or non-filing of an income tax return, landlord tenant roster, and employer annual reconciliation. All penalty and interest is mandated by the State of Ohio. Penalty is applied as stated in the table.

Penalty Calendar Year Amount Assessed
Late File 2016 and after $25 per month, not to exceed $150
Late File 2015 and prior $50 flat fee
Late Pay 2016 and after One-time 15%
Late Pay 2015 and prior 3% per month, or $50 (whichever is greater)
Late Withholding 2016 and after One-time 50%
Late Withholding 2015 and prior 6% per month, or $100 (whichever is greater)

Tax Credit

The City of Monroe's Tax credit for those residents working outside of Monroe is 100%, but cannot exceed the City of Monroe's tax rate of 1.5%

For those employers that offer a courtesy withholding of residents tax, see the following table.

Work City Tax Rate % Due to Monroe %
0.0% 1.5%
1.0% 0.5%
1.5% 0.0%
2.0% 0.0%
2.5% 0.0%