Local Income Tax by State
On top of state income tax, about 5,000 cities, counties, and school districts across 16 states levy their own local income tax. If you live or work in one of these places, your real tax rate is higher than the state number alone.
Local income tax by state (2026)
About 5,000 cities, counties, and school districts across 16 states levy a local income tax on top of state tax. This table shows the largest taxing jurisdiction in each state — the rate that most residents of the biggest local-income-tax city actually face.
| State | Largest taxing city | Local rate | Tax name |
|---|---|---|---|
| Alabama | Birmingham | 1% | Occupational Tax |
| Colorado | Denver | $9.75/month | Occupational Privilege Tax |
| Delaware | Wilmington | 1.25% | Wage Tax |
| District of Columbia | Washington DC | — | Income Tax |
| Indiana | Indianapolis | 2.02% | Income Tax |
| Iowa | Des Moines | 0.085% | Local Income Surtax |
| Kansas | — | — | Local Intangibles Tax |
| Kentucky | Louisville | 1.45% | Occupational License Tax |
| Maryland | Baltimore | 3.2% | Income Tax |
| Michigan | Detroit | 2.4% | Income Tax |
| Missouri | Kansas City | 1% | Earnings Tax |
| New Jersey | Newark | 1% | Payroll Tax |
| New York | New York City | 3.876% | Income Tax |
| Ohio | Columbus | 2.5% | Municipal Income Tax |
| Oregon | Portland | 4% | Transportation District Income Tax |
| Pennsylvania | Philadelphia | 3.8712% | Wage Tax |
| West Virginia | Charleston | $6/pay period | City Service Fee |
CO/WV levy a flat dollar wage tax instead of a percentage. Kansas taxes only interest/dividend income. Rates are representative of the largest city, not an exhaustive list of every jurisdiction.
What this means for you
Local income taxes are biggest in the Northeast and industrial Midwest. A New York City resident pays 3.876% city tax plus the state's graduated rate; a Baltimore resident pays 3.2% on top of Maryland's state tax. If you live in a major city, your all-in state + local income tax can be meaningfully higher than the state rate shown on its state tax profile.
Estimate your real take-home pay
See federal + FICA + state together.