Income tax can take a bite out of your paycheck, and depending on the state you live in you may have to pay county, city, or even school district income tax. Fourteen states and Washington DC allow counties and cities to impose their own local income taxes in addition to federal and state income tax. Below is a list of those states, with the cities that impose local income taxes wherever possible.
If you live in one of these areas, or you’re thinking of moving to one of these cities, you should be prepared to file a local income tax return along with your state and federal returns.
Birmingham and Mountain Brook – 1% occupational tax on gross wages.
Jefferson County- 0.45% occupational tax.
These school districts impose income tax: Berryville, Green Forest, Westside,
Huntsville, Waldron, and Marshall- income tax equal to 10% state income tax.
Aurora- $2 per month on gross earnings over $250.
Denver- $5.75 per month on gross earnings over $500.
Greenwood Village- $4 per month on gross earnings over $250.
District of Columbia
D.C. has a bracketed local income tax system.
4% on the first $10,000 of your gross income.
6% on gross income from $10,000 to $40,000.
8.5% on gross income from $40,000+.
Wilmington- 1.25% flat local tax on income.
Most Iowa school districts impose income tax.
For a list of the Iowa school districts and tax rates, click here.
All counties in Indiana have an individual local income tax.
For a list of Indiana counties and tax rates, click here.
Bowling Green, Covington, Florence, Lexington-Fayette, Louisville, Owensboro,
Paducah, and Richmond. Lexington-Fayette Urban County Government and
Louisville-Jefferson County impose taxes on businesses.
For a list of Kentucky cities and tax rates, click here.
All Maryland counties charge income tax.
For a list of Maryland counties and tax rates, click here.
Albion, Battle Creek, Big Rapids, Flint, Grayling, Hamtramck, Hudson, Ionia, Jackson,
Lansing, Lapeer, Muskegon, Muskegon Heights, Pontiac, Port Huron, Portland,
Springfield and Walker, Detroit, Grand Rapids, Highland Park, Saginaw.
For a list of Michigan cities and their tax rates, click here.
Kansas City and St. Louis- 1% income tax.
Yonkers- Income tax is equal to 10% of your net state income tax.
New York City- Income tax rates range from 2.907% to 3.648%.
A large portion of cities in Ohio have an income tax.
For a list of Ohio cities and their tax rates, click here.
The Tri-Met Transit District- 0.7337%.
Lane County Transit District- 0.60%.
Multnomah County- 1.45% business income tax.
Most municipalities in Pennsylvania have Earned Income Tax.
For a list of Pennsylvania municipalities and their tax rates, click here.
Are your consulting services subject to sales tax? Click here to find out.
As you can see, where you choose to live can have a significant impact on your taxes. So If you are considering moving to one of these areas and want to know how local income tax could effect your tax bill, don’t hesitate to contact us and set up a free tax consultation. Let’s start building your tax strategy today!local income tax, taxes