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All Tipp City residents 18 years of age and older are required to file an annual income tax return with the City regardless of if or where they work. The local income tax rate is 1.5 % and applies to gross wages, salaries, other personal service compensation and net profits of Tipp City businesses.
Tipp City allows 100% credit (up to the total 1.5% Tipp City tax rate) for taxes paid to the workplace municipality. The income tax revenue funds the majority of non-utility related city-provided services and capital improvement projects.