Local Income Taxes in 2026: Which Cities and Counties Tax Your Wages

Major city and county income taxes at a glance (2026)

Rates apply to wages unless noted. "Nonresident" means people who work in the city but live elsewhere.

Pennsylvania: the earned income tax (EIT) is almost everywhere

Nearly every Pennsylvania municipality and school district levies a local earned income tax. A combined rate of about 1% is common in suburbs, and cities charge more. Pittsburgh residents pay 3% (2% city + 1% school district). Your employer withholds the higher of your home municipality's resident rate or your work location's nonresident rate. Most municipalities also charge a Local Services Tax of up to $52 a year.

Philadelphia is a special case. Its Wage Tax applies to all residents wherever they work and to nonresidents who work in the city. Starting July 1, 2026 the rates are 3.735% for residents and 3.425% for nonresidents, the latest step in a multi-year phase-down. A Philadelphia resident earning $70,000 pays about $2,615 in city wage tax, on top of $2,149 in Pennsylvania tax at 3.07%.

Ohio: municipal and school district income taxes

Hundreds of Ohio cities and villages tax wages, usually at 1%–2.5%. They tax people who work there and usually residents too. Each city decides how much credit residents get for tax paid to the city where they work, so the total you pay depends on both places. Columbus, Cleveland, Toledo, Akron and Dayton all charge 2.5%. Cincinnati charges 1.8%. Many school districts add their own income tax, which applies only to residents and is filed with the state. Collection is handled by agencies such as RITA and CCA, or by the city itself.

Maryland and Indiana: county taxes on every return

Every Maryland county and Baltimore City adds a local income tax that you calculate on your state return. For 2026 the rates run from 2.25% (Worcester) to the new 3.30% maximum (Dorchester and Kent). Montgomery County, Baltimore City and many others charge 3.20%, and Anne Arundel and Frederick use graduated rates. On $80,000 of Maryland taxable income in a 3.2% county, the local tax is about $2,560.

All 92 Indiana counties also levy an income tax, collected along with the 2.95% state tax. Several counties raised their rates on January 1, 2026, including Howard (2.35%), Grant and Union (2.75%). Your rate depends on the county you live in on January 1.

Other local wage taxes to know

• Michigan: 24 cities tax income. Detroit charges 2.4%/1.2%, Highland Park 2%, Grand Rapids and Saginaw 1.5%, and most others (including Lansing, Flint and East Lansing) 1% for residents and 0.5% for nonresidents.
• Kentucky: most cities and counties charge occupational license taxes on wages, often 1%–2.25% combined. Louisville's 2.2% resident rate includes 0.75% for schools.
• Missouri: Kansas City and St. Louis tax residents and anyone who works in the city at 1%. Voters renewed both taxes in April 2026.
• Oregon: the Portland-area Metro Supportive Housing Services tax (1%) and Multnomah County Preschool for All tax (1.5%, rising to 3% above $250k single / $400k joint) apply only to taxable income above $125,000 single / $200,000 joint. These thresholds are now indexed for inflation.
• Head taxes: Denver ($5.75 a month for employees) and a few other cities charge flat occupational privilege taxes instead of a percentage.

How to check whether you owe a local income tax

• Look at box 18–20 of your W-2. If a locality name and tax appear, your employer is withholding local tax.
• If you work remotely, the rules depend on where you physically work, especially in Ohio and Pennsylvania.
• If you moved during the year, you may owe a part-year local return to both places.
• Use a city-level paycheck calculator, such as our NYC calculator, to see the combined effect.