Income Tax Information

The City of Brookville has a local income tax of 2.00%.  The tax is applicable to all residents of the city, to non-residents who work within the city and to all businesses located or performing services within the City of Brookville.  Taxable income includes all qualifying wages, salaries and other compensation and all business net profits.  Every resident and every business located or performing services within the City of Brookville is required to file an annual return whether or not any income was earned or any tax is due.

The Vandalia Tax Office administers the income tax for the City of Brookville.  Questions concerning the tax and/or assistance in preparing the tax returns for the City of Brookville may be directed to the Vandalia Tax Office at 333 James Bohanan Memorial Drive in Vandalia or by calling (937) 415-2240 or toll free (866) 898-5891.  Office hours are 8:00 a.m. to 5:00 p.m. Monday through Friday. 

Income Tax Credit Reduction
Where a resident of the City of Brookville is subject to a municipal income tax in another municipality, a joint economic development district, or a joint economic development zone district, as well as in the City of Brookville, he or she will receive a credit for municipal income tax paid to the other municipality or district.  The credit will not exceed one percent (1%) of the income subject to taxation. 
Example: Taxpayer “A” lives in Brookville and works in Dayton. “A” earned $50,000.00 and had $1,125.00 (2.25% of earned income) of Dayton tax withheld from their pay. Brookville will give a maximum credit on the $50,000.00 of $500.00 (1.00% of earned income).  Since the taxpayers tax liability would be $1,000 ($50,000 x 2%), minus the credit for Dayton ($500.00), this would leave the taxpayer owing $500.00 to Brookville.

Every individual who resides in the City who received net profits, salaries, wages, commissions or other personal service compensation for work done or services performed or rendered outside the City of Brookville, and who is liable and has paid to another municipality an income tax on the same income taxable and taxed under our Income Tax chapter, shall be allowed a credit against the tax imposed by our Income Tax chapter (on the same income to the extent such income is taxed under our Income Tax chapter) of the amount so paid by him or on his behalf to such other municipality.  The credit shall not exceed one percent (1%) of the income subject to taxation.  No credit shall be given for county or school district taxes paid, but only for other municipal taxes paid.

The amount of income reported on federal Schedules C, E and F earned in and taxed by a given municipality (as a percentage of total income reported on federal Schedules C, E and F attributable to taxing and non-taxing jurisdictions) shall be used to determine each municipality’s contribution to Brookville net profits taxable income, prior to calculation of the resident City credit for taxes paid to other cities on net profit income.  The credit shall not exceed one percent (1%) of the income subject to taxation.

If the total amount of credit granted under the Income Tax chapter exceeds the total amount of tax due to the City before application of all such credits, then no refund shall be due or payable to the taxpayer.
This revised income tax credit will go into effect beginning January 1, 2017.
Residents have two options on paying the income tax credit to Brookville.

  1. You can request your employer withhold and submit 1% of your wages as a courtesy.
  2. For those taxpayers who have income that is not fully withheld, or your employer will not withhold as a courtesy, you can pay your tax in quarterly installments throughout the year.  The payments are due in April, June, September and December.  When such payments are not made timely, penalties and interest may be imposed.

To avoid penalty and interest charges, a resident can pay at least 90% of the tax due in timely quarterly installments; the other is to have paid, again in timely installments, an amount equal to the tax liability in the immediate prior year.  Those amounts may be a combination of employer withholding and estimated payments. 
Estimated tax payments may be remitted electronically through the City of Vandalia website, , or mailed directly to their office.  Quarterly estimated remittance statements can be downloaded from the City of Vandalia website as well.
IMPORTANT DATES

Annual Tax Returns are due by April 15 unless that date falls on Emancipation Day or a weekend day, then the due date would be the next business day.  For those that file on a fiscal year basis, annual tax returns are due within 3½ months of the end of the fiscal year.

Estimated Taxes are due on or before the fifteenth day of the fourth month after the beginning of the taxable year, twenty-two and one-half percent of the tax liability for the taxable year; on or before the fifteenth day of the sixth month after the beginning of the taxable year, forty-five percent of the tax liability for the taxable year; on or before the fifteenth day of the ninth month after the beginning of the taxable year, sixty-seven and one-half percent of the tax liability for the taxable year; on or before the fifteenth day of the twelfth month of the taxable year, ninety percent of the tax liability for the taxable year.

Monthly Employee Withholding Returns and Remittances are due no later than 15 days after the last day of each month.  Taxes required to be deducted and withheld shall be remitted monthly to the Tax Administrator if the total taxes deducted and withheld in the preceding calendar year exceed $2,390.00, or if the total amount of taxes deducted and withheld in any month of the preceding calendar quarter exceeded $200.00. 

Quarterly Employee Withholding Returns and Remittances are due no later than the last day of the following month.

Income tax forms, instructions and filing information for the City of Brookville may be downloaded from the City of Vandalia website,

Income Tax Ordinance -