Individuals

All Ashland residents over the age of 18 are required to file an annual income tax return with the city. People who work in Ashland but live outside the city do not need to submit income taxes to the city, as long as their employers have fully withheld taxes from their paychecks. Also non-residents who run businesses in the city, must file an income tax return based on the amount of income they generated in Ashland.

College Students

If you are a college student whose parents live in Ashland and claim you as a dependent on their return, you must file an income tax return with the city. Although you may live out of town in a dorm or apartment, Ashland is still your permanent residence.

Landlords

If you own rental property in Ashland, you must file a local income tax return regardless of whether or not you are a resident.

Returns from non-residents only need to include income earned on rental properties in Ashland. In contrast, if you are a resident of Ashland, your return must include all of the income you earn from all of your rental properties even if some of them are outside of Ashland.

Part-Time Residents

Part-time residents must file an income tax return for the portion of the year for which they were residents. You may prorate your taxes based on the amount of time spent as a resident.

Exemptions

If you are retired and/or permanently disabled and you have no taxable income, you do not have to pay income tax. However, we request that you file an exemption form with the city and notify us of changes to your situation as needed. We can help with that process.

Quarterly Installments

If you owe more than $200 in municipal income tax per year, you can make quarterly payments to the city. That saves you from having to make a large payment in April, and it helps keep your finances in order.

If you anticipate owing quarterly taxes, set up a declaration with the city, and we will send you a notice detailing what you owe each quarter.

If you fail to make quarterly payments, you will be assessed a 15 percent penalty on any unpaid estimated taxes.

Late Payments

If you fail to file your income tax return by April 15, you are assessed a $25.00 fee starting in 2023. For tax years 2017-2022, there can be a penalty of $25.00 per month or portion of month up to $150.00. There is an additional non-payment penalty of 15 percent of the unpaid taxes.

Any tax owed to the city is subjected to interest. As of 2016, the interest rate on late tax in Ashland is the current Federal short term interest rate rounded to the nearest whole percent plus an additional 5 percent. The interest rate for 2024 is 10% per annum or 0.83% per month.

Returned Payments

Finally, if your check or ACH payment is returned, you face a $15 penalty.

Refunds

If you believe the city owes you a refund, you should request it on your original return and attach all supporting documentation to your return.

Signed, Sealed, Delivered

Please submit your individual tax return with copies of your Federal Schedules. Also, remember to sign your return. Unsigned returns are sent back, and they are not considered filed until they are signed and returned.

Questions

If you have questions on individual income taxes, please check out our FAQ page or reach out to us directly. We offer help over the phone and in person.