Local income taxes are levied by cities, counties, or special districts on top of state and federal taxes. They appear in your paycheck as a separate line item. The key question for each jurisdiction is whether it taxes residents (based on where you live), nonresidents (based on where you work), or both. All rates below come from the site’s official local tax data file, verified on 2026-10-07.
The paycheck calculator applies local taxes where they are modeled for the selected state.
States With Major Local Tax Withholding
New York: NYC and Yonkers
New York City levies a resident income tax using four progressive brackets. Nonresidents working in NYC owe no NYC income tax — a key distinction from most local tax systems. (NY Dept. of Taxation — NYC Withholding Tables)
NYC resident tax rates (single, 2026):
| NYC Taxable Income | Rate |
|---|---|
| $0 – $12,000 | 3.078% |
| $12,001 – $25,000 | 3.762% |
| $25,001 – $50,000 | 3.819% |
| Over $50,000 | 3.876% |
On $80,000 of taxable income, a single NYC resident pays approximately $2,700 in city income tax, on top of New York State income tax.
Yonkers taxes:
- Residents: a surcharge of 16.75% of their NY State income tax liability (not 16.75% of income).
- Nonresidents: 0.5% of wages earned within Yonkers.
Check NYC take-home at /paycheck-calculator/new-york/.
Pennsylvania: Philadelphia and Local EIT
Philadelphia Wage Tax applies to residents (all wages, wherever earned) and nonresidents (wages earned in Philadelphia):
- Resident rate (effective July 1, 2025–June 30, 2026): 3.74%
- Nonresident rate: 3.43%
- Rates reduced slightly effective July 1, 2026: resident 3.735%, nonresident 3.425%
For calendar-year 2026 returns, a blended rate applies: approximately 3.7375% resident / 3.4275% nonresident. (City of Philadelphia Revenue)
Local Earned Income Tax (EIT): Most Pennsylvania municipalities and school districts levy a combined EIT, typically 1%–3.5% (municipality plus school district). Residents owe tax at their resident municipal rate on all earned income; employers withhold at the employee’s place of residence or the workplace rate, whichever applies. Find your municipality’s exact rate at the PA DCED Local Tax Tool.
Check Pennsylvania take-home at /paycheck-calculator/pennsylvania/.
Indiana: All 92 Counties
Every Indiana county levies a county income tax. For residents, your rate is determined by your county of residence as of January 1. Nonresidents are taxed by their county of principal employment as of January 1. Rates for 2026 are from Departmental Notice #1 (R47/10-26). (Indiana DOR)
Selected county rates (single rate applied to Indiana adjusted gross income):
| County | Rate |
|---|---|
| Hamilton | 1.10% |
| Kosciusko | 1.00% |
| Spencer | 0.80% |
| Porter | 0.50% |
| Lake | 1.50% |
| Marion (Indianapolis) | 2.02% |
| Cass | 2.95% |
| Blackford | 2.50% |
| Randolph | 3.00% |
Rates range from 0.5% (Porter County) to 3.0% (Randolph County). Boone County changed rate effective October 1, 2026 to 1.71%. If you changed counties during the year, consult the annual Departmental Notice.
Check Indiana take-home at /paycheck-calculator/indiana/.
Maryland: County Taxes Collected by the State
Maryland’s 23 counties and Baltimore City each levy a local income tax. The Comptroller of Maryland collects it along with the state income tax — it appears on the state return and in payroll withholding tables. Most counties use a flat rate on Maryland taxable income; Anne Arundel and Frederick counties use progressive brackets. (Maryland Comptroller — Withholding Tax Facts 2026)
Selected 2026 county rates:
| Jurisdiction | Rate |
|---|---|
| Baltimore City | 3.20% |
| Baltimore County | 3.20% |
| Montgomery County | 3.20% |
| Prince George’s County | 3.20% |
| Howard County | 3.20% |
| Talbot County | 2.40% |
| Garrett County | 2.65% |
| Worcester County | 2.25% |
| Dorchester County | 3.30% |
| Nonresidents (state-collected) | 2.25% |
Nonresidents who work in Maryland pay a 2.25% “nonresident” rate collected by the state. Kent County increased from 3.20% to 3.30% for 2026; Allegany County increased from 3.03% to 3.20%.
Michigan: 24 Cities
Twenty-four Michigan cities levy income taxes under the Uniform City Income Tax Ordinance. Detroit is administered by the Michigan Department of Treasury; other cities self-administer. (Michigan Treasury)
| City | Resident Rate | Nonresident Rate |
|---|---|---|
| Detroit | 2.40% | 1.20% |
| Grand Rapids | ~1.50% | ~0.75% |
| Most other cities | 1.00% | 0.50% |
For cities other than Detroit, verify current rates at michigan.gov/citytax.
Missouri: Kansas City and St. Louis
Missouri law permits only two cities — Kansas City and St. Louis — to levy an earnings tax. Both use 1% on earned income of residents (all wages regardless of work location) and on nonresidents for income earned within the city. Retirement income (Social Security, pensions) is excluded. Kansas City voters renewed the tax in April 2026 with over 75% approval. (KCMO Finance Dept.)
Ohio: Around 600 Municipalities
Ohio has one of the most complex local tax systems in the US, with approximately 600 taxing municipalities ranging from 0.5% to 3%. Employers must withhold at the workplace municipality rate; residents may also owe a return to their home municipality. The Regional Income Tax Agency (RITA) administers about 350 jurisdictions. (RITA Ohio)
Selected 2026 rates:
| City | Rate |
|---|---|
| Columbus | 2.50% |
| Cincinnati | 1.80% |
| Toledo | 2.50% |
| Akron | 2.50% |
| Dayton | 2.50% |
Cleveland’s 2026 rate was not retrieved from an official 2026 source in time for this audit; verify at ritaohio.com.
Check Ohio take-home at /paycheck-calculator/ohio/.
Oregon: Portland Metro and Multnomah County
Two overlapping personal income taxes apply to workers in the Portland-metro area, both based on Oregon taxable income:
- Portland Metro Supportive Housing Services (SHS) Tax — 1% on Oregon taxable income above $128,000 (single) or $205,000 (joint). (Metro Revenue Division)
- Multnomah County Preschool for All (PFA) Tax — 1.5% on income $125,001–$250,000 (single) / $200,001–$400,000 (joint); 3% above those thresholds.
Important: Employer withholding is voluntary unless you earn $200,000 or more. Below that threshold, employees must opt in to withholding or pay through quarterly estimates. Taxes are filed with Metro/Multnomah Revenue Division.
Kentucky: Louisville and Lexington
Kentucky cities and counties levy Occupational License Taxes (OLT). Louisville Metro (Jefferson County) and Lexington-Fayette are the two largest:
| Jurisdiction | Resident Rate | Nonresident Rate |
|---|---|---|
| Louisville Metro | 2.20% | 1.45% |
| Lexington-Fayette | 2.25% | 2.25% |
Louisville’s 2.20% resident rate combines the 1.25% occupational license, 0.20% TARC transit, and 0.75% school boards charges. Nonresidents pay 1.45% (occupational + transit only). Many other Kentucky jurisdictions also levy occupational taxes at varying rates.
Other States
- Alabama — Birmingham: 1% occupational tax on gross wages for work performed within Birmingham city limits, regardless of residence. (Birmingham Finance Dept.)
- Colorado — Denver: $5.75/month employee Occupational Privilege Tax (OPT) when wages earned in Denver exceed $500/month. The Aurora OPT was repealed effective January 1, 2025 and no longer applies. (Denver Finance)
- Delaware — Wilmington: 1.25% earned income tax on wages earned in Wilmington or earned anywhere by Wilmington residents.
- Iowa: Some school districts levy an income surtax (up to 20% of Iowa state tax) collected on the annual state return, not through payroll withholding. Rates vary by district.
How to Know If Local Tax Applies to You
- Check your pay stub: look for a line labeled with a city, county, or district name.
- Contact your payroll department — they withhold based on your work location.
- Review your state’s local tax lookup tool (Indiana DOR, RITA Ohio, PA DCED, michigan.gov/citytax).
If you live in one jurisdiction and work in another, you may need to file local tax returns in both places, taking a credit in your home jurisdiction for taxes paid to your work jurisdiction.