Local Income Tax Calculator 2026
Estimate your 2026 take-home pay when your city, county, or school district charges a local income tax on top of federal, FICA, and state withholding.
Local Income Tax Calculator 2026
Gross Pay (per period)
Pay Frequency
Filing Status
State
City / Locality
Locality options update based on the selected state.
Residency
Pre-Tax Deductions (per period)
Estimates only. Not tax or legal advice. Local rules vary by jurisdiction; consult a tax professional for your situation.
Annualized View
Notes
- Local income tax rules vary by city, county, and school district. This calculator shows simplified rates for quick estimates.
Track Local Taxes on Every Paycheck
The Pay44 app handles overtime, bonuses, pre-tax deductions, and federal, state, and local withholding for all 50 states. No surprises on payday.
Which US cities and counties have a local income tax in 2026?
Local income tax is the exception, not the rule. Roughly 17 states allow some city, county, or school district to tax wages, and most of the action is concentrated in the Mid-Atlantic and Rust Belt. The biggest paycheck hits come from layered systems. New York City stacks a 3.078% to 3.876% progressive local rate on top of New York State. Philadelphia's 3.75% wage tax sits on top of Pennsylvania's 3.07% flat. Maryland counties piggyback a 2.25% to 3.20% rate onto the state return.
Ohio is the outlier on volume. The Regional Income Tax Agency (RITA) and Central Collection Agency (CCA) administer income tax for more than 600 municipalities, most charging 1.5% to 2.5%. Indiana counties (0.5% to 3.38%) and Kentucky occupational license fees (1% to 2.75%) round out the hardest hit states. A second tier (Alabama, Delaware, Iowa, Oregon, Colorado, West Virginia) carries local taxes too, often as small flat-dollar occupational privilege fees or school district surtaxes that fly under the radar but still show up on box 19 of your W-2.
Compare a specific paycheck side by side with our bonus tax calculator when a one-time payment is in play, or zoom out to your overall rate with the marginal vs. effective tax rate calculator.
Resident vs. non-resident: who pays which rate?
Split-rate jurisdictions are where this calculator earns its keep. Philadelphia charges 3.75% on residents (all wages, anywhere earned) and 3.44% on non-residents (wages earned inside city limits only). Detroit charges 2.4% resident and 1.2% non-resident. Yonkers adds a 16.75% surcharge on top of New York state tax for residents, plus a 0.5% flat wage tax for non-residents who work in Yonkers. Pittsburgh layers a 3% resident EIT (or 1% non-resident) on top of a flat $52 per year Local Services Tax that everyone working in the city pays.
Pennsylvania's Act 32 is the rule that catches most people off guard. The employer must withhold at the higher of the employee's resident EIT rate (looked up by home PSD code) or the work-location non-resident rate. The money flows to whichever district has the higher rate, and the other district gets a credit. If you live in a 1% township and work in a 1.5% borough, the borough takes 1.5%, and your home township gets nothing.
NYC handles non-residents differently: zero. The NYC commuter tax was repealed in 1999, so a Jersey City resident who works in Manhattan owes no NYC tax, only NY state income tax on NY-source wages.
How local tax interacts with state and federal withholding
The paycheck stack runs in a specific order. Pre-tax deductions (401(k), HSA, Section 125) come off first and reduce taxable wages for federal income tax and most state income taxes. From that lower base, federal and state tax brackets apply. FICA (Social Security 6.2% up to the $184,500 wage base in 2026, Medicare 1.45% on all wages plus 0.9% additional Medicare above $200k single or $250k joint) is calculated on gross wages, ignoring 401(k) and most pre-tax items (though HSA escapes FICA via Section 125 plans).
Local tax is the wild card. Some localities (Philadelphia, Kansas City, St. Louis, most Ohio cities) tax gross wages with no reduction for 401(k). Others (Maryland counties, Indiana counties, Yonkers) follow the state taxable income base, so pre-tax deductions reduce the local tax too. This calculator defaults to taxing gross wages for the local layer, which matches the actual withholding on most paystubs.
On the federal side, state and local income tax combined is deductible on Schedule A as part of the SALT deduction, capped at $10,000 under current law. Most filers take the standard deduction and never see the benefit. Look at boxes 18, 19, and 20 of your W-2 to confirm what was withheld and to which locality. For deeper breakdowns of how withholding compares to your actual tax bill, the Pay44 app keeps a running tally and reconciles at year end. Download Pay44 to track each paycheck.
Quick reference: NYC, Philadelphia, Pittsburgh, Ohio RITA, Baltimore, Detroit, Louisville, Kansas City
The table below pulls the headline 2026 resident and non-resident rates for the cities that drive the most paycheck math. Rates rounded to the nearest 0.01% or simplified to the top progressive bracket where applicable.
| City | State | Resident | Non-resident | Notes |
|---|---|---|---|---|
| New York City | NY | 3.876% (top bracket) | 0% | Progressive 3.078% to 3.876%. Commuter tax repealed 1999. |
| Yonkers | NY | 16.75% of NY state tax | 0.5% of wages | Resident rate is a surcharge on state tax owed. |
| Philadelphia | PA | 3.75% | 3.44% | On gross wages. Pre-tax deductions do not reduce base. |
| Pittsburgh | PA | 3.00% + $52 LST | 1.00% + $52 LST | EIT plus annual Local Services Tax. |
| Columbus | OH | 2.5% | 2.5% | Work-location based. RITA collected. |
| Cleveland | OH | 2.5% | 2.5% | CCA collected. |
| Cincinnati | OH | 1.8% | 1.8% | Lowest of major Ohio cities. |
| Baltimore City | MD | 3.20% | 2.25% | Piggyback on MD state tax. Non-residents pay flat 2.25%. |
| Detroit | MI | 2.4% | 1.2% | Form 5118/5119 allocations apply. |
| Louisville Metro | KY | 2.2% | 1.45% | Includes schools (0.75%) for residents only. |
| Kansas City | MO | 1.0% | 1.0% | Earnings tax. Work-location based. |
| St. Louis | MO | 1.0% | 1.0% | Earnings tax. Work-location based. |
For a deeper look at how these stack against federal and FICA on a real paycheck, try the bonus tax calculator for one-time payouts, or the marginal vs. effective tax rate calculator to see your blended rate across every layer.
Frequently Asked Questions
Common questions about local income tax calculator 2026
What is local income tax, and which US cities charge it?
Local income tax is a wage tax levied by a city, county, school district, or special-purpose district on top of federal and state withholding. About 17 states permit some form of local income tax in 2026: New York, Pennsylvania, Ohio, Maryland, Indiana, Kentucky, Michigan, Missouri, Alabama, Delaware, Iowa, Oregon, Colorado, West Virginia, New Jersey (Newark payroll), California (a few legacy cases), and a handful of others. The most-impacted residents are in New York City, Philadelphia, Pittsburgh, Detroit, Baltimore, Louisville, Kansas City, and St. Louis.
Does NYC have a local income tax, and do non-residents owe it?
Yes. NYC residents pay a progressive city income tax that ranges from 3.078% on the first $12,000 of taxable income up to 3.876% on amounts above $50,000 (single filer). Non-residents who only work in NYC pay $0 in city tax. The NYC commuter tax was repealed in 1999, so a New Jersey or Long Island resident who commutes into Manhattan owes NY state tax on NY-source wages, but no NYC tax.
How much is Philadelphia's wage tax in 2026?
Philadelphia's wage tax is 3.75% for city residents on all wages, and 3.44% for non-residents on wages earned inside Philadelphia (FY 2025-2026 rates from the City of Philadelphia Department of Revenue). The tax applies to gross wages, not federal taxable income, so 401(k) and most Section 125 deductions do not reduce the Philadelphia wage tax base.
What is Pennsylvania Act 32 EIT, and how does PSD code withholding work?
Act 32 consolidated Pennsylvania's local Earned Income Tax (EIT) collection into 69 collection districts and requires employers to withhold at the higher of two rates: the employee's resident EIT rate (based on home PSD code) or the work-location non-resident rate. The Political Subdivision (PSD) code identifies the municipality and school district. Employers look up both rates in the PA DCED database and withhold the higher amount, which is then split between the employee's home and work jurisdictions per Act 32 rules.
What is Ohio RITA, and why might I owe Ohio city tax even if I work from home?
RITA (Regional Income Tax Agency) administers municipal income tax for over 300 Ohio cities and villages. Ohio is unusual: almost every municipality with more than a few thousand residents levies an income tax (typically 1.5% to 2.5%) on wages earned by anyone working in the city. If you live in one taxing city and work in another, you generally owe tax to your work city, with a partial credit on your resident-city return. Remote workers can owe their home-city rate even with no commute, because Ohio cities tax based on where the work is performed.
Do I owe local income tax where I live or where I work?
It depends on the jurisdiction. Philadelphia, Detroit, Yonkers, Louisville, and most Michigan and Kentucky cities tax both residents (on all wages) and non-residents (on wages earned in the city), often at different rates. NYC and Yonkers (resident surcharge) only tax residents. Ohio cities and Alabama occupational taxes are work-location based. Pennsylvania Act 32 uses the higher of the resident or work-location rate. Maryland counties tax residents only, with a flat non-resident rate (currently 2.25%) for people working in MD but living elsewhere.
Is local income tax deductible on my federal return?
Yes. Local income tax is part of the State and Local Tax (SALT) deduction on Schedule A. Under current law (P.L. 119-21), the SALT cap is $10,000 per return ($5,000 if married filing separately) for property tax plus state and local income or sales tax combined. You only benefit if you itemize, which most taxpayers do not since the standard deduction is so high. For renters in NYC or Philadelphia at higher income levels, local tax alone can exceed the SALT cap.
Why is my paycheck smaller in NYC than in nearby New Jersey for the same salary?
Three reasons stack up. First, NY state tax brackets reach 6.85% at moderate incomes and 10.9% over $25 million, while NJ stays at 6.37% until $500,000. Second, NYC residents pay an extra 3.078% to 3.876% city income tax that NJ residents do not. Third, NY uses a different supplemental withholding rate (11.70%) for bonuses than NJ. On a $100,000 salary, the same earner can keep roughly $3,000 to $4,000 more per year living in Jersey City versus Manhattan, before factoring in NJ commuter credits on NY-source income.