What is a local income tax?

A tax levied by a city, county, or school district on wage income on top of federal and state tax. Some localities tax residents only (NYC, Yonkers). Others tax anyone who works there (Kansas City, St. Louis earnings tax, Detroit nonresident, Wilmington wage tax). PA cities use Earned Income Tax (EIT) under Act 32 with a rate that varies by municipality and school district.

Do all states have local income taxes?

No. Most do not. The big locality clusters are Pennsylvania (every municipality and school district has an EIT), Ohio (RITA / CCA cities), Maryland (every county piggybacks on state tax), Indiana (every county), Michigan (city of Detroit and ~22 others), New York (NYC + Yonkers residents), Kansas City and St. Louis (earnings tax), and Wilmington DE. California, Texas, Florida, and most states do not have employee local income tax.

How do I find my local rate?

PA: PA DCED Local Tax Finder by address. Ohio: RITA or CCA city register. Maryland: Comptroller of MD county tax table. Indiana: Indiana DOR County Tax Rates. Michigan: city treasurer. NYC / Yonkers: NY Department of Taxation and Finance. Kansas City / St. Louis: city Revenue Division. Wilmington: City of Wilmington Earned Income Tax. Always verify with the official agency, not a third-party blog.

Does the calculator on this page handle all of them?

It estimates the most common locality patterns: NYC top-marginal resident rate, Yonkers surcharge, PA EIT (you enter your rate), Ohio RITA / CCA (you enter), Maryland county (you enter or use mid-range default), Indiana county (you enter), Michigan city (you enter), Wilmington 1.25%, KC and STL 1%. It does not handle every special school-district or transit add-on. For unusual cases, use the city revenue agency directly.

Is my employer required to withhold local tax?

In some states (PA Act 32, Ohio courtesy withholding rules, Maryland piggyback) employers must withhold for the work location, the resident location, or both. In states without local income tax, the locality lines on your stub will be blank. If you live in a locality with tax but your employer is not withholding, you may owe at filing. Check with payroll and the city revenue agency.

Why is NYC so much higher than Yonkers?

NYC has its own progressive income tax with a top resident rate around 3.876% of taxable income. Yonkers does not have its own income tax in the same form, it instead applies a 16.75% surcharge to your New York State personal income tax liability (NYS Pub NYS-50-T-Y). Because the base is your NYS tax owed (not your wages), the effective additional rate on a mid-income Yonkers resident lands around 1% of wages, much lower than NYC. Both apply only to residents, not to commuters who work in those cities but live elsewhere.

Do remote workers pay local tax?

Usually based on where you actually perform the work. If you live and work remotely in a locality with tax, that locality typically taxes you. If you live in one locality and your employer is in another, rules vary by state (PA has an out-of-state credit, Ohio has the Reform Act, NYC convenience-of-employer rules apply for nonresidents who occasionally work elsewhere). This is a frequent area for tax preparer questions.

Is local tax deductible on my federal return?

It can be part of the State and Local Tax (SALT) deduction if you itemize, currently capped at $10,000 combined federal limit. For most filers under the standard deduction, the local tax simply reduces your take-home and does not appear separately on your federal return. This is educational only, not tax advice.

Frequently asked questions

What is a local income tax?: A tax levied by a city, county, or school district on wage income on top of federal and state tax. Some localities tax residents only (NYC, Yonkers). Others tax anyone who works there (Kansas City, St. Louis earnings tax, Detroit nonresident, Wilmington wage tax). PA cities use Earned Income Tax (EIT) under Act 32 with a rate that varies by municipality and school district.
Do all states have local income taxes?: No. Most do not. The big locality clusters are Pennsylvania (every municipality and school district has an EIT), Ohio (RITA / CCA cities), Maryland (every county piggybacks on state tax), Indiana (every county), Michigan (city of Detroit and ~22 others), New York (NYC + Yonkers residents), Kansas City and St. Louis (earnings tax), and Wilmington DE. California, Texas, Florida, and most states do not have employee local income tax.
How do I find my local rate?: PA: PA DCED Local Tax Finder by address. Ohio: RITA or CCA city register. Maryland: Comptroller of MD county tax table. Indiana: Indiana DOR County Tax Rates. Michigan: city treasurer. NYC / Yonkers: NY Department of Taxation and Finance. Kansas City / St. Louis: city Revenue Division. Wilmington: City of Wilmington Earned Income Tax. Always verify with the official agency, not a third-party blog.
Does the calculator on this page handle all of them?: It estimates the most common locality patterns: NYC top-marginal resident rate, Yonkers surcharge, PA EIT (you enter your rate), Ohio RITA / CCA (you enter), Maryland county (you enter or use mid-range default), Indiana county (you enter), Michigan city (you enter), Wilmington 1.25%, KC and STL 1%. It does not handle every special school-district or transit add-on. For unusual cases, use the city revenue agency directly.
Is my employer required to withhold local tax?: In some states (PA Act 32, Ohio courtesy withholding rules, Maryland piggyback) employers must withhold for the work location, the resident location, or both. In states without local income tax, the locality lines on your stub will be blank. If you live in a locality with tax but your employer is not withholding, you may owe at filing. Check with payroll and the city revenue agency.
Why is NYC so much higher than Yonkers?: NYC has its own progressive income tax with a top resident rate around 3.876% of taxable income. Yonkers does not have its own income tax in the same form, it instead applies a 16.75% surcharge to your New York State personal income tax liability (NYS Pub NYS-50-T-Y). Because the base is your NYS tax owed (not your wages), the effective additional rate on a mid-income Yonkers resident lands around 1% of wages, much lower than NYC. Both apply only to residents, not to commuters who work in those cities but live elsewhere.
Do remote workers pay local tax?: Usually based on where you actually perform the work. If you live and work remotely in a locality with tax, that locality typically taxes you. If you live in one locality and your employer is in another, rules vary by state (PA has an out-of-state credit, Ohio has the Reform Act, NYC convenience-of-employer rules apply for nonresidents who occasionally work elsewhere). This is a frequent area for tax preparer questions.
Is local tax deductible on my federal return?: It can be part of the State and Local Tax (SALT) deduction if you itemize, currently capped at $10,000 combined federal limit. For most filers under the standard deduction, the local tax simply reduces your take-home and does not appear separately on your federal return. This is educational only, not tax advice.

Local taxes

Local paycheck taxes, in plain English.

US cities and counties that levy income tax on residents, on workers, or on both, with verified rates and an estimator. This is the layer the standard paycheck calculator usually skips.

Reviewed by PayslipIQ Editorial Team, in-house payroll editor

Last reviewed May 2026 · Editorial standards

In plain English

A local income tax is a city, county, or school-district tax on wages, on top of federal and state tax. Most US workers do not pay one, but if you live or work in NYC, Yonkers, any Pennsylvania municipality, an Ohio RITA / CCA city, a Maryland county, an Indiana county, Detroit (or ~22 other Michigan cities), Wilmington DE, Kansas City MO, or St. Louis MO, your paycheck has an extra line. Rates range from 1% (Wilmington, KC, STL) to ~3.9% (NYC top marginal). PayslipIQ's estimator below approximates the most common patterns. Verify with your city or county revenue agency before relying on a number.

Local tax estimator

Gross pay this paycheck

Locality

Local tax this paycheck

$116.28

Effective rate

3.88%

Annualised local tax

$3023

NYC resident income tax (top marginal). Nonresidents who work in NYC do not pay this.

Estimate only. Local income tax rules vary by residency, work location, school district, and special assessments. Some localities (NYC, Yonkers) tax residents but not commuters; others (KC, STL, Wilmington) tax both. Verify with the city revenue agency or your payroll team before relying on a number. This calculator does not include state income tax, federal income tax, Social Security, or Medicare. Pair it with theGross to Net Paycheck Calculatorfor a complete picture.

Verified locality table

Verified 2026-05-06. Rates change, click through to the official source for the current figure.

City / cluster	Approx rate	Who pays	Source
New York City (NY)	~3.876% top resident	Residents	Open
Yonkers (NY)	16.75% of NYS tax owed (≈ 1% of wages at mid-income)	Residents	Open
Philadelphia, Pittsburgh, every PA muni	1-3.5% EIT (Act 32)	Resident OR work location	Open
Ohio RITA / CCA cities	1-3% typical	Resident + work location with credits	Open
Maryland counties	2.25-3.2% piggyback	County of residence	Open
Indiana counties	0.35-3.38%	County of residence on Jan 1	Open
Detroit & ~22 MI cities	Detroit 2.4% resident / 1.2% nonresident	Resident OR work location	Open
Wilmington, DE	1.25% wage tax	Wages earned in Wilmington	Open
Kansas City, MO	1% earnings tax	Resident + nonresident worked-in	Open
St. Louis, MO	1% earnings tax	Resident + nonresident worked-in	Open
San Francisco, CA	Payroll Expense Tax (employer)	Employer-paid, not employee withholding	Open

When this matters

You moved into or out of a city with local tax mid-year (proration applies).
You live in one PA municipality and work in another (Act 32 source rule).
You are a remote worker with a different residence vs employer city.
Your stub shows a deduction labelled CITY, RITA, EIT, or LST that you do not recognise.
You are filing a multi-locality return for the first time.

Common questions

What is a local income tax?: A tax levied by a city, county, or school district on wage income on top of federal and state tax. Some localities tax residents only (NYC, Yonkers). Others tax anyone who works there (Kansas City, St. Louis earnings tax, Detroit nonresident, Wilmington wage tax). PA cities use Earned Income Tax (EIT) under Act 32 with a rate that varies by municipality and school district.
Do all states have local income taxes?: No. Most do not. The big locality clusters are Pennsylvania (every municipality and school district has an EIT), Ohio (RITA / CCA cities), Maryland (every county piggybacks on state tax), Indiana (every county), Michigan (city of Detroit and ~22 others), New York (NYC + Yonkers residents), Kansas City and St. Louis (earnings tax), and Wilmington DE. California, Texas, Florida, and most states do not have employee local income tax.
How do I find my local rate?: PA: PA DCED Local Tax Finder by address. Ohio: RITA or CCA city register. Maryland: Comptroller of MD county tax table. Indiana: Indiana DOR County Tax Rates. Michigan: city treasurer. NYC / Yonkers: NY Department of Taxation and Finance. Kansas City / St. Louis: city Revenue Division. Wilmington: City of Wilmington Earned Income Tax. Always verify with the official agency, not a third-party blog.
Does the calculator on this page handle all of them?: It estimates the most common locality patterns: NYC top-marginal resident rate, Yonkers surcharge, PA EIT (you enter your rate), Ohio RITA / CCA (you enter), Maryland county (you enter or use mid-range default), Indiana county (you enter), Michigan city (you enter), Wilmington 1.25%, KC and STL 1%. It does not handle every special school-district or transit add-on. For unusual cases, use the city revenue agency directly.
Is my employer required to withhold local tax?: In some states (PA Act 32, Ohio courtesy withholding rules, Maryland piggyback) employers must withhold for the work location, the resident location, or both. In states without local income tax, the locality lines on your stub will be blank. If you live in a locality with tax but your employer is not withholding, you may owe at filing. Check with payroll and the city revenue agency.
Why is NYC so much higher than Yonkers?: NYC has its own progressive income tax with a top resident rate around 3.876% of taxable income. Yonkers does not have its own income tax in the same form, it instead applies a 16.75% surcharge to your New York State personal income tax liability (NYS Pub NYS-50-T-Y). Because the base is your NYS tax owed (not your wages), the effective additional rate on a mid-income Yonkers resident lands around 1% of wages, much lower than NYC. Both apply only to residents, not to commuters who work in those cities but live elsewhere.
Do remote workers pay local tax?: Usually based on where you actually perform the work. If you live and work remotely in a locality with tax, that locality typically taxes you. If you live in one locality and your employer is in another, rules vary by state (PA has an out-of-state credit, Ohio has the Reform Act, NYC convenience-of-employer rules apply for nonresidents who occasionally work elsewhere). This is a frequent area for tax preparer questions.
Is local tax deductible on my federal return?: It can be part of the State and Local Tax (SALT) deduction if you itemize, currently capped at $10,000 combined federal limit. For most filers under the standard deduction, the local tax simply reduces your take-home and does not appear separately on your federal return. This is educational only, not tax advice.

Pair this with the gross-to-net calculator

The estimator above is local tax in isolation. For a complete pre-tax to take-home view, use the Gross to Net Paycheck Calculator and add the local figure to its state tax line.

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.