Tax Department FAQs

Frequently asked Questions 

  1. Who must file a return with the City of Norwood?
    • ALL RESIDENTS 18 years of age or older.
  2. What is the Tax Rate for the City of Norwood?
    • The current tax rate is 2.0%
  3. Do I need to file if my employer withholds all of my municipal tax?
    • If you are a Resident of Norwood you are required to file even if no tax is due.
    • Non-Resident W2 employees who are fully withheld for the City of Norwood are not required to file.
  4. Can I file Electronically?
    • YES, follow the link for "E-File my Return" on the Tax department home page.
  5. Does Norwood give credit for taxes paid to other municipalities?
    • Norwood gives credit for taxes paid to other municipalities. We only give credit up to 2% and or 100% of that localities tax rate. We do not give credit for School District taxes paid an will not refund because of workplace taxes being greater than 2%.
  6. Which income is taxable?
    • Wages, salaries, tips, net profits from businesses, and rental income. 
    • Common exempt incomes include: Retirement, Social Security, Unemployment, Capital Gains, Alimony/Child Support.

Info you may not know

  1. Local Tax is Calculated by using BOX 5 on your W2(s)
  2. Capital Gains are NOT taxable to the City of Norwood.
  3. Earnings from Rental properties are taxable the City of Norwood.
  4. If you are a Residential/Commercial property owner with tenants please submit you property questionnaire located in the forms section.
  5.  Turbo tax/ Tax Slayer an other online Federal filing services DO NOT file your local return for you. Please contact the office to ensure your account is up to date.