The decision came after what Mayor Frank Jackson called an "exhaustive process" of investigation. He said both officers were disciplined for violating department rules.
Rice had been playing with what looked like a gun in a park near his home when someone called 911 to report him.
Cleveland authorities also announced that Frank Garmback, the officer driving the patrol vehicle at the time Loehmann shot Rice, would be suspended for 10 days for administrative rule violations of his own. "When this happened in 2014, I made the comment that this is of course a tragedy, but it's even more tragic that it happened at the hands of a Cleveland police officer".
"The officers did not violate any rules, with the exception of failing to notify our communication control section, which is police radio, of their arrival time at the Cudell Recreation Center", Deputy Chief Wayne Drummond said.
"And Garmback should be fired, too, for his role in pulling up too close to Tamir", Samaria Rice said.
Rice was shot and killed by Loehmann outside Cudell Recreation Center in Cleveland, Ohio, on November 22.
A county prosecutor announced in December 2015 that Loehmann and Garmback wouldn't be indicted after telling a grand jury there wasn't evidence to support criminal charges.
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He was also found to have had an emotional breakdown on the gun range in Independence, officials said.
"This is a politically motivated witch hunt", Loomis said.
"We are in fear the other shoe is going to drop due to additional accountability failures by the City of Cleveland". In March, a dispatcher who did not tell officers that the 9-1-1 caller said Rice's gun was probably fake and that Rice was a child was suspended without pay for eight days.
Loehmann's firing took effect Tuesday morning, and Garmback's suspension begins Wednesday.
"FILE â€" In this December 1, 2014, file photo, Tomiko Shine, left, holds a sign with a photo of Tamir Rice, a boy fatally shot by a Cleveland police officer, while protesting a grand jury's decision in Ferguson, Mo., not to indict police officer Darren Wilson in the shooting death of Michael Brown, during a demonstration in Washington.