Local Income Tax — Payroll Definition
What is Local Income Tax? Clear definition and explanation for payroll professionals, HR managers, and employees.
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.