U.S. Cities That Levy Income (Earnings) Taxes
Compare St. Louis's low 1 percent rate to other major cities that impose an earnings tax. Updated Oct. 1, 2021.
Seventeen states and the District of Columbia allow cities, counties and municipalities to levy their own separate individual income taxes in addition to state income taxes.
Alabama: Bessemer, Birmingham, and Macon County levy an income tax of 1 percent. Gasden levies an income tax of 2 percent.
California: The city of San Francisco levies a 0.38 percent income tax.
Colorado: Five cities impose taxes on compensation. Aurora charges $2 a month, Denver charges $5.75 a month, Glendale charges $10 a month, Greenwood Village charges $4 a month and Sheridan charges $6 a month.
District of Columbia: D.C. has a bracketed income tax system. The rates are 4 percent for the first $10,000 of income, 6 percent for $10,000 to $40,000 of income, and 8.5 percent for income over $40,000.
Delaware: Wilmington has a 1.25 percent tax on income.
Indiana: All 92 counties in Indiana have an individual income tax. Tax rates range from 0.35 percent to 3.38 percent.
Iowa: 280 local taxing jurisdictions impose an income tax surcharge ranging from 1 percent of state liability to 20 percent of state liability.
Kansas: Income tax is imposed on earnings derived from interest and dividends in 484 local taxing jurisdictions. Rates range from 0.13 percent to 2.5 percent.
Kentucky: 210 taxing jurisdictions, with rates ranging from 0.0033 percent to 2.5 percent.
Maryland: All Maryland counties levy income taxes on residents and nonresidents. Tax rates range from 1.75 percent to 3.20 percent. Baltimore city has an income tax of 3.20 percent.
Michigan: Several Michigan cities impose income taxes with rates ranging from 0.50 percent to 2.40 percent. Detroit's income tax rate is 2.40 percent.
Missouri: Both Kansas City and St. Louis have an earnings tax of 1.0 percent.
New Jersey: Newark imposes a 1.0 percent tax on earned income.
New York: Yonkers and New York City both have individual income taxes. New York City's income tax rates range from 3.078 percent to 3.876 percent. Yonkers’s income tax rate is equal to 16.75 percent of net (after credits) state income tax.
Ohio: There are 848 taxing jurisdictions with rates ranging from 0.25 percent to 3.0 percent.
Oregon: The Tri-Met Transit District (includes Portland) assesses an income tax of 0.6918 percent. The Lane County Transit District (includes Eugene) assesses an income tax of 0.0067 percent.
Pennsylvania: Most municipalities in Pennsylvania assess a tax on wages, known as the Earned Income Tax, with rates from to 0.312 percent to 3.8809 percent. Philadelphia has a rate of 3.8809 percent.
West Virginia: Charleston levies $6 a pay period, Huntington levies $10 a pay period, Parkersburg levies $5 a pay period, and Weirton levies $2 a week.
Reference: Tax Foundation.
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