VILLAGE INCOME TAX INFORMATION
WHO MUST FILE?
All full or part time residents of the village 18 years of age and older must file a yearly tax return whether or not any tax is due. Also, any non-resident who owns rental property in the village must file an annual tax return.
WHAT IS THE INCOME TAX RATE?
The Village Income Tax Rate is currently 1% of Gross Income earned within the village or by a village resident.
WHAT IF MY EMPLOYER ALREADY WITHHOLDS LOCAL INCOME TAX?
If you are employed within the village of Fredericksburg your employer should withhold the necessary income tax from your paycheck, but you still must file all necessary returns. If you are employed outside of the village and income tax is being withheld for another village or city; the Village of Fredericksburg offers a credit of up to 1%. Amounts paid over 1% to another municipality are not credited because the tax was not paid to Fredericksburg.
WHEN IS THE RETURN DUE?
Annual returns are due on April 15 along with a Declaration of Estimated Income for the following year. Failure to file the proper forms by this date may result in penalties and interest.
WHAT IF I MOVED DURING THE YEAR?
You must still pay tax for the portion of the year you resided and/or were employed in Fredericksburg.
HOW CAN I TELL IF MY INCOME IS SUBJECT TO THE TAX?
Certain types of income are not taxable (i.e. Military Pay, Pensions, Social Security Benefits, Permanent Disability Benefits…etc). If you believe that your income may not be taxable you should consult the ordinance, which is a separate page on this website (here), for all exempted income.