Major Cities With Local Income Taxes
Major U.S. cities with local income taxes and annual cost at $75,000 salary
| City / Jurisdiction | Local Tax Rate | Annual Impact at $75,000 |
|---|---|---|
| New York City | 3.078-3.876% (residents) | $2,309-$2,907/year |
| Philadelphia | 3.75% (residents), 3.44% (non-residents) | $2,813/year for residents |
| San Francisco | None city income tax | $0 |
| Columbus, OH | 2.5% | $1,875/year |
| Cleveland, OH | 2.5% | $1,875/year |
| Cincinnati, OH | 1.8% | $1,350/year |
| Pittsburgh, PA | 3% (commuter tax) | $2,250/year |
| St. Louis, MO | 1% (residents) | $750/year |
| Louisville, KY | 2.2% | $1,650/year |
| Baltimore, MD | 3.2% (city) | $2,400/year |
New York City residents pay the state income tax (4.5-6.85% at $75K) PLUS the NYC local tax (3.078-3.876%). Combined with 22% federal, FICA, and NYS+NYC: a $75,000 NYC resident’s take-home is approximately $48,000-$50,000 — well below comparable incomes in no-tax states.
How Local Taxes Are Withheld
Employers in cities with local income taxes are typically required to withhold the local tax from each paycheck, just like federal and state taxes. Some local taxes apply only to residents; others apply to anyone who works in the city (commuter tax). New York City taxes only city residents; Philadelphia taxes both residents and non-residents who work there.
- Your employer should automatically withhold the correct local tax if you are in a local-tax jurisdiction
- If you work remotely and live in a different city than your employer, local tax typically applies to where you live
- Some cities require workers to file a separate local tax return even with withholding
- Moving within a state to avoid city taxes (NYC to NJ; Philadelphia to suburbs) is a common and substantial tax savings move
Calculate Your Take-Home Pay With Local Taxes
Include your city’s local income tax rate to see the full impact on your net paycheck.