Q. So do I have to pay taxes to both cities?
A. Yes, for many people. But in your specific circumstances, no. Cuyahoga Falls allows a 100% credit (up to 2%) and Middleburg Heights has the same 2% tax rate.
But, you do have to file a RITA return for Cuyahoga Falls, your residence city.
You are required to file a city return in the city you live in, if that city has an income tax.
You are not required to file in the city you work in, unless they failed to withhold the proper amount. If both cities have an income tax, you may end up owing your resident city nothing, but you are still required to file a return. If you live and work in the same city and your employer did withhold the exact correct amount, you still have to file a return.
Incidentally, employers are only required to withhold for the work city, although many will voluntarily withhold for the resident city as well. Employees of most big companies, in Ohio, seldom owe any city tax, at tax time, because the employer holds out exactly the right amount for both work and resident city, taking into account the credit.
