Which US cities have a local income tax?

NYC, Yonkers, Philadelphia, Pittsburgh, Detroit, several Ohio cities, Wilmington DE, Newark NJ, Birmingham, Kansas City, St Louis, plus dozens of smaller cities and most Maryland counties, Indiana counties, and Kentucky cities.

Do I pay city tax if I work in a city but live elsewhere?

Depends on the city. NYC tax is residence-based (commuters from NJ do not pay NYC tax). Philadelphia, Detroit, most Ohio cities tax both residents and non-residents who work in the city, often at different rates.

How is local tax calculated?

Usually a flat percentage of taxable wages. Sometimes the percentage differs for residents vs non-residents. Verify with the city's Department of Revenue.

Local Income Taxes (US Cities and Counties)

Most US workers pay federal and state income tax. A subset also pay local income tax to a city, county, or special-purpose district. Here is the geography of US local income tax.

PayslipIQ provides educational information and estimated calculations only. It does not provide tax, legal, financial, accounting, employment, benefits, or payroll advice. PayslipIQ is not a CPA firm, law firm, financial advisor, payroll provider, or tax authority. Always verify your paycheck, deductions, withholdings, and tax position with your employer's payroll department, a qualified CPA, the IRS, your state tax authority, or another appropriately qualified professional. Calculations are estimates; your actual paycheck may differ based on factors specific to your employer, location, benefits elections, and personal tax situation.

States with notable local income taxes

State	Localities
New York	NYC residents (multi-bracket city tax) and Yonkers residents (surcharge)
Pennsylvania	Philadelphia City Wage Tax (residents and non-residents working in city). Most municipalities and school districts statewide levy a Local Earned Income Tax (LEIT).
Ohio	Most cities levy income tax administered by RITA, CCA, or the city directly. Common rates 1.5 to 2.5 percent. Some school districts also levy SDIT.
Michigan	Detroit (resident and non-resident rates), Grand Rapids, Lansing, Flint, Saginaw, Pontiac, others. About two dozen cities total.
Maryland	All counties piggyback on the state return. Plus Baltimore City.
Indiana	County income tax (CAGIT/COIT) statewide.
Kentucky	Many cities and counties levy occupational tax.
Missouri	Kansas City and St Louis levy 1 percent earnings tax.
Alabama	Birmingham, Bessemer, Macon County, others (occupational tax).
Delaware	Wilmington wage tax.
Iowa	Some school districts add a surtax.
Oregon	TriMet (Portland metro) and LTD (Lane County) transit taxes. Multnomah County and Portland Metro Supportive Housing Services.
New Jersey	Newark 1 percent payroll tax (employer-paid, but worth knowing).

Resident vs non-resident rules

Many local taxes are residence-based: live there, you pay; work there but live elsewhere, you do not. NYC is the cleanest example. Others (Philadelphia, Detroit, most Ohio cities) tax both residents and non-residents who work in the city, often at different rates.

Reciprocity and credits

If you work in one local jurisdiction and live in another that also taxes income, the residence locality often credits tax paid to the work locality (in part or in full). The exact rule varies by state.

How local tax shows on a pay stub

Common labels: LOC, LIT, LST, CITY, OCC, LEIT, RITA, CCA, plus a city or county name. The amount is usually a flat percentage of taxable wages.

Frequently asked questions

Which US cities have a local income tax?: NYC, Yonkers, Philadelphia, Pittsburgh, Detroit, several Ohio cities, Wilmington DE, Newark NJ, Birmingham, Kansas City, St Louis, plus dozens of smaller cities and most Maryland counties, Indiana counties, and Kentucky cities.
Do I pay city tax if I work in a city but live elsewhere?: Depends on the city. NYC tax is residence-based (commuters from NJ do not pay NYC tax). Philadelphia, Detroit, most Ohio cities tax both residents and non-residents who work in the city, often at different rates.
How is local tax calculated?: Usually a flat percentage of taxable wages. Sometimes the percentage differs for residents vs non-residents. Verify with the city's Department of Revenue.