Income Tax Issue

Calculate Your Estimated Taxes

The City of Avon Lake is proposing an additional 0.4% municipal income tax on the May 5, 2026, ballot. If passed, the income tax rate would be adjusted from 1.5% to 1.9% for a five-year period. The approximate $6.6 million in revenue generated by this 0.4% increase would go into a dedicated Roads and Capital Improvements Fund.  A minimum of 65% of the revenue would be specifically designated for road improvements and associated debt, and a maximum of 35% designated to stormwater management projects, capital equipment, and payments on capital-related debt.

For a household earning $100,000 in taxable wages, the proposed increase would equal approximately $400 per year or $33 per month. The proposed tax is focused on wage-earners contributing to the infrastructure we all use and will not increase the tax burden for residents on fixed retirement incomes. The tax does not apply to Social Security income, pensions, or annuities. Approximately 75% of City residents work and pay income taxes in other cities under our current 1.5% tax credit. Those dollars do not come back to Avon Lake. The 1.5% tax credit will remain in place, but the additional 0.4% tax would apply to earned income for ALL residents, regardless of where they work.

In addition, this does not take funding from our schools or library. 

If the 0.4% income tax increase is passed, the City will stop collecting its existing 1.5-mill operating property tax, resulting in an overall tax decrease for retired residents. Because the income tax issue would apply only to earned income, it will not increase the tax burden for residents on fixed retirement incomes. 

We have maintained our quality of life on 1992 tax rates for 33 years. The City has taken action to bridge the funding gap by reducing operating budgets, limiting overtime pay, initiating steps to reduce healthcare costs, and pursuing grants and other revenue sources. However, these efforts alone cannot keep pace with the rising costs of capital improvements. To fix our roads, manage stormwater, and maintain our services effectively, we need to align our revenue with today’s costs.


Calculate Your Estimated Costs with Our Income Tax Calculator

Use the calculator below to estimate the cost of the proposed 0.4% municipal income tax increase and elimination of the City's existing 1.5-mill operating property tax on your overall taxes.

Property Tax Decrease Calculator

Enter your home's Lorain County appraised value (not assessed value) to see an estimate of how much you are currently paying under the City's existing 1.5-mill property tax. This tax would be eliminated.
This is your annual property tax under the existing 1.5-mill levy.
$0.00
Taxable value: $0.00 x 0.35 = $0.00
Effective value: $0.00 x 0.646174 = $0.00
Property tax on 1.5-mill levy: $0.00 / 1,000 = $0.00

Income Tax Increase Calculator

Enter annual wages or other earned income subject to municipal income tax. Do not include retirement income. This is the amount shown in box 18 of your W-2.
Annual increase in income tax
$0.00
Income tax increase: $0.00 x 0.004 = $0.00

Annual Increase (Decrease) in Total Taxes

Annual Increase (Decrease)
$0.00
This is the amount your overall taxes will increase or decrease annually.
Annual net: $0.00 - $0.00 = $0.00
Monthly Increase (Decrease)
$0.00
This is the amount your overall taxes will increase or decrease monthly.
Monthly net: ($0.00 - $0.00) / 12 = $0.00
Income tax increase is calculated as income x 0.4%. Property tax reflects the current 1.5-mill operating levy.
This information is an estimate and should not be taken as tax, financial, or legal advice. Your actual tax impact may vary based on your specific circumstances.