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Parma Paycheck Calculator (2026)

Enter your annual salary below to see your Parma take-home pay after federal, state, FICA, and city/local taxes for 2026.

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The engine applies Parma's resident rate to the full wage base. Ohio's work-city withholding and Parma's partial resident credit are not modeled, so a Parma resident who works in another Ohio city will see a different split between the two cities than the estimate shows.

Quick answer

Yes. Parma levies a 2.5% municipal income tax on residents, but credits only part of the tax paid to another Ohio city, so commuters owe Parma a balance. At $85,000 single, a Parma resident who also works in Parma takes home $64,602 after federal tax, FICA, Ohio state tax, and the city line.

Parma is Ohio's seventh-largest city and the biggest suburb in Cuyahoga County, sitting immediately south of Cleveland. It levies a 2.5% municipal income tax, matching Cleveland's headline. The number that actually matters, though, is the credit: Parma refunds residents only part of what they pay to another Ohio city, capping the credit below its own rate. A Parma resident working in Cleveland therefore pays Cleveland at the source and still owes Parma the shortfall, which is not how most Ohio suburbs work. Given how many Parma residents commute into Cleveland, that gap is the single most consequential fact on a Parma pay stub, and it is the one most calculators miss. The city's Polish and Ukrainian heritage still shapes Ridge Road, and the Parma Ridgewood and Stearns Farm areas carry the post-war housing stock that drew Cleveland's manufacturing workforce outward. Ohio pay stubs carry no state disability line. At $85,000 single, federal income tax is $9,870, Ohio state tax $1,901, FICA $6,503, and the Parma line $2,125, leaving $64,602.

$85,000 single filer take-home comparison

Parma

$64,600

Ohio (no city tax)

$66,700

Texas (no income tax)

$68,600

Parma take-home is -$2,100 vs the state-only figure and -$4,000 vs the no-income-tax baseline.

Parma local tax breakdown

Local bracket schedule applied by the calculator for 2026.

Taxable IncomeRate
$0+2.5%

What this estimate includes

This calculator computes Parma take-home pay using 2026 federal brackets after the standard deduction, FICA contributions (Social Security up to the annual wage base, Medicare on all wages, plus the Additional Medicare Tax above the filing-status threshold), Ohio's state income tax schedule, the Parma local income tax. It excludes employer-side payroll taxes, custom W-4 elections, supplemental-wage handling for bonuses or equity vesting, and income from sources other than W-2 wages. Per-city resident and non-resident rules are described in the prose above where they differ.

Parma paycheck FAQ

Does Parma give a full credit for tax paid to Cleveland?
No, and this is the point most Parma commuters get wrong. Parma caps the credit below its own 2.5% rate, so a resident working in Cleveland pays Cleveland at the source and still owes Parma the difference on the annual return. Suburbs that grant a full credit leave a commuter owing nothing extra; Parma does not.
What is the federal tax bill on $85,000 single in Parma?
Federal income tax at $85,000 single is $9,870, taxed in the 22% bracket after the standard deduction. Federal mechanics are identical nationwide, so a Parma filer sees the same federal line as a Cleveland or Columbus counterpart on the same gross. Only the municipal layer differs.
How does Parma compare to Cleveland on the city line?
The two levy the same headline rate, so a Parma resident working in Parma and a Cleveland resident working in Cleveland pay an identical city line at the same gross. The difference appears only when someone crosses the line to work, because Parma's capped credit leaves a commuter with a residual bill and Cleveland's does not.
Does a 401(k) contribution reduce the Parma city tax?
It reduces federal and Ohio state taxable income at roughly the 24.75% combined marginal rate. Ohio municipal tax is levied on gross qualifying wages rather than on taxable income, so a traditional 401(k) deferral does not shrink the Parma line the way it shrinks the federal and state ones.
What changes for married filing jointly or head of household at $85,000 in Parma?
Joint filers clear about $68,684, $4,082 more than single, driven by wider federal brackets and the doubled standard deduction. Ohio's schedule and Parma's flat municipal rate apply the same to every status. Head of household lands near $67,524.
How is the Parma municipal tax collected?
Parma self-administers its income tax rather than routing through RITA or CCA. Employers withhold the 2.5% rate at the source on wages earned in the city, and residents settle any credit shortfall on the annual municipal return. For a Cleveland commuter, that return is usually the first sight of the balance owed.

See also

Run the full Ohio paycheck calculatorCompare with Columbus, OhioCompare with ClevelandCompare with CincinnatiWhat the same wage pays in ToledoEstimate hourly take-home for ParmaWhat a bonus pays after Ohio withholdingTime and a half after Ohio payroll taxState and local paycheck tax questionsBrowse all city paycheck calculatorsBrowse paycheck calculators by statePaycheck and tax glossaryHow we calculate paycheck taxes

Reviewed

How This Page Is Reviewed

The Parma paycheck page is reviewed against primary federal, state, and city sources before each major tax-year update. Source links below are the references used to validate brackets, wage bases, and supported local taxes.

Reviewed by

PaycheckCalc Research Desk

Last reviewed

2026-07-14