Local Taxes FAQ

The following is frequently asked questions about the City of Blue Ash earnings tax. 

What is the earnings/net profit tax rate?

The tax rate is 1.25% on all salaries, wages (including sick and vacation pay), commissions and other compensation and on net profits of persons or businesses conducting business within the City.

Who is required to file a Blue Ash Business tax return?

Any self-employed person, partnership, S corporation, corporation, limited liability company, or other business entity within Blue Ash or doing business in Blue Ash if required to file a Blue Ash tax return. Filing a Blue Ash Business Tax Return is mandatory regardless of whether taxes are due. This return due on or before April 15 of each year.  For non-calendar year filers, returns are due by the 15th of the fourth month following the fiscal year end.

When are estimated tax payments due?

If the business has an estimated tax liability, quarterly payments are due the end of the month following the quarter, with the first quarter payment due when filing the previous year's tax return.

For example, for those businesses which operate on a calendar fiscal year basis (January - December), estimated quarterly payments are due on April 15, July 31, October 31, and January 31 for the first, second, third and fourth quarters respectively.

Who is responsible for paying the earnings (withholding) tax and when are payments due?

Employers are required to withhold earnings tax in the amount of 1.25% from all qualifying wages of employees working in Blue Ash.  Withholding tax payments are due monthly on or before the 15th of the month following such withholding.  Employers with less than $300 per month of withholding tax liability may make payments on a quarterly basis, due on or before the last day of the month following the end of the quarter.

Do Greater Cincinnati area communities offer a credit for earning tax paid in Blue Ash?

In the Greater Cincinnati area, earnings taxes are first paid to the municipality where a person works (versus where he or she lives).  Most area communities that also have an earnings tax will give full or partial credit to their residents for the earnings tax paid where they work.

How do I handle payments to individuals who are not treated as employees?

In addition to the wage reporting requirements, any person required by the Internal Revenue Service to report on Form 1099-Misc. payments to individuals not treated as employees for services performed, shall also report such payments to Blue Ash when the services were performed in the City.  This information shall be filed annually on or before February 28 following the end of such calendar year.

For more information contact the City of Blue Ash Tax Office at (513) 745-8516