What Is Local Income Tax?

Local income taxes are levied by certain cities, counties, or municipalities on top of state income tax. Major cities with local income taxes include New York City (3.078%-3.876%), Philadelphia (3.75%), Detroit (2.4%), and Columbus (2.5%). In states like Ohio, nearly every city charges a local income tax through the RITA system. Many states prohibit local income taxes entirely.

Common paystub code: LOCAL / CITY

Where You'll See Local Income Tax

• On your paystub (earnings statement) under earnings, deductions, or taxes
• On your annual W-2 form (or 1099 for contractors)
• In payroll software (ADP, Paychex, Gusto, QuickBooks)
• In employer payroll reports and IRS filings

Related Terms

• State Income Tax (SIT)
• rita
• city-tax

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