Does the City of Troy impose a municipal income tax?
Yes. The City of Troy does impose a municipal income tax to provide revenue in support of municipal operations as authorized by Chapter 171 and subsequently amended. This tax was first adopted in 1967 and is imposed on the earnings of all residents and, as well, to nonresidents who work within the City of Troy. In addition, the tax is imposed on all businesses that operate within Troy, performing work and/or service within Troy, and on the net profit from all business activity from Corporations, S-Corps, Partnerships, LLCs and any other type of entity with nexus within the City of Troy. Note: Single entity LLCs who file a Schedule C on their individual Federal Income Tax Return may also file reporting the Schedule C on their individual City of Troy Income Tax Return.

Individuals who are Troy residents, but have pass-through income (with the exception of S-Corp income) must report the pass-through income on their individual income tax return (unless the entity files a Troy tax return reporting all income to Troy). If the pass-through income of a resident has been taxed at either the entity or pass-through level by another municipality, credit as provided by the Income Tax Ordinance will be allowed for tax paid on said pass-through income. S-Corporations will report Troy activity only on an entity level.

Show All Answers

1. Does the City of Troy impose a municipal income tax?
2. What is the current income tax rate?
3. Must I file an income tax return?
4. I am a Troy resident who works outside the City of Troy. My employer withholds local income taxes from my pay. Do I still owe income taxes to the City of Troy?
5. Where can I get income tax forms?
6. Where do I file my income tax return?
7. Can someone assist me in completing my City of Troy Income Tax Return?
8. My spouse and I file separate federal tax returns. Do we need to file separate City of Troy Income Tax Returns?
9. What will happen if I don’t file my income tax return or pay my balance due?
10. I am starting a business in Troy. Where do I get information and forms for a business account?