Some localities call them different names, such as earnings taxes or wage taxes, and some have much higher rates than others.
Alabama
Alabama has four local taxing jurisdictions: three cities and one county. Two cities, Bessemer and Birmingham, levy an income tax of 1%. Gadsden’s rate is 2%. Macon County imposes a 1% tax as well. The tax is imposed on both residents and nonresidents who work in these locations.
Colorado
Five Colorado cities impose an income tax as a flat dollar amount on compensation earned by both residents and nonresidents. It’s called an occupational privilege tax and is charged to employees who work within city limits. (Employers also pay the tax, but that amount may be different from the tax owed by the employee.)
Aurora: $2 per month on employers and employees who work within the city limitsDenver: $5.75 per monthGlendale: $5 per monthGreenwood Village: $2 per monthSheridan: $3 per month
Delaware
Only Wilmington levies a local income tax in this state. It’s a flat 1.25% on earned income. It’s the same rate for residents and nonresidents.
Indiana
All 92 counties in Indiana have an individual income tax, ranging from 1% in several counties to 2.864% in Jasper County. Allen County, the largest county, levies an income tax at 1.48%, Clinton County at 2.45%, Fountain County at 2.1%, LaGrange County at 1.65%, Marion County at 2.02%, and Sullivan County at 1.7% as of October 2022.
Iowa
Iowa is home to more than 280 local taxing jurisdictions. All but one of them are school districts. They each impose an income tax surcharge ranging from 1% to 20% of state income tax you pay (not 20% of your income). Appanoose County also levies a 1% “emergency services” surtax on income.
Kansas
There are 484 local taxing jurisdictions in Kansas, including counties, cities, and townships. Rates range from 0.13% to 5.75%.
Kentucky
Most of Kentucky’s jurisdictions impose income taxes. Rates range from 0.01% in Elsmere, Hart County, and Spencer County to 2.5% in Bellevue, Covington, Newport, and Southgate as of 2022.
Maryland
All 23 Maryland counties levy income taxes on both residents and nonresidents. Tax rates range from 2.25% in Worcester County to 3.20% in Baltimore County, Caroline, Dorchester, Howard, Kent, Montgomery, Prince George’s, Queen Anne’s, Somerset, and Wicomico Counties in 2022. The city of Baltimore also has an income tax of 3.20%.
Michigan
Several Michigan cities imposed income taxes on residents at a rate of 1.0% as of 2021. Nonresidents pay 0.5%. Four cities levy higher rates, however:
Detroit: 2.4% on residents, 1.2% on nonresidentsGrand Rapids: 1.5% on residents, 0.75% on nonresidentsHighland Park: 2.0% on residents, 1.0% on nonresidentsSaginaw: 1.5% on residents, 0.75% on nonresidents
Missouri
Kansas City and St. Louis have an income tax of 1%. They call it an “earnings tax.” Both cities charge nonresidents the same rate.
New Jersey
The city of Newark imposes a flat 1% tax on earned income in addition to the state income tax. The same rate applies to both residents of the city and to nonresidents who work there.
New York
Yonkers and New York City both have individual income taxes. New York City’s income tax rates ranged from 3.078% to 3.876% in 2021. But the city doesn’t impose the tax on nonresidents. The Yonkers tax is equal to 16.75% of a resident’s state tax.
Ohio
There are 418 municipalities in Ohio. Eight don’t charge any income taxes. The other 400 charge between 0.50% and 3% as of 2022.
Oregon
The greater Portland area (Metro) imposes a 1% personal income tax for individuals with Metro taxable income over $125,000 ($200,000 if married filing jointly). Multnomah County has a 1.5% tax on those same income groups, with an additional 1.5% tax on Multnomah income over $250,000 or $400,000 for joint filers. The Lane County Transit District, which includes Eugene, assesses a tax on earned income of 0.01% on residents and nonresidents alike as of 2022.
Pennsylvania
Most municipalities in Pennsylvania assess a tax on wages called the Earned Income Tax. Rates for residents range from a low of 1% up to 3.79% in Philadelphia, 3.6% in Reading, 3.4% in Scranton, and 3% in Pittsburgh and Wilkes-Barre. Nonresidents are subject to lesser rates in most cities that tax at over 1%.
West Virginia
West Virginia has four taxing jurisdictions. They charge a flat dollar rate, not a percentage:
Charleston: $6 per pay periodHuntington: $10 per pay periodParkersburg: $5 per pay periodWeirton: $2 per week