Local Income Tax — Payroll Definition

Local Income Tax paystub meaning: City or county income tax levied in some jurisdictions (e.g., NYC, Philadelphia, Detroit). Codes: LOCAL / CITY.

City or county income tax levied in some jurisdictions (e.g., NYC, Philadelphia, Detroit).

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.

Tax entries on a pay statement depend on taxable wages, current employee elections, filing status, pay frequency, jurisdiction, and current agency instructions. Compare the current-period amount with year-to-date totals and the employer-issued record before treating it as final.

When this term appears on a statement, read its label, current amount, year-to-date amount, pay-period context, and any adjacent rate or hours together. Resolve a mismatch with the original issuer or the cited authority rather than changing a record to force a preferred result.