Most tax calculators show federal and state income tax — and stop there. But in 14 states, cities, counties, or school districts levy their own income taxes on top. These local taxes are easy to overlook during salary negotiations or relocation planning, and they can add 1–4% to your total tax burden. If you live or work in one of these states, you may be paying a tax you didn’t even realize existed.
The states with local income taxes are: Alabama, Delaware, Indiana, Iowa, Kentucky, Maryland, Michigan, Missouri, New Jersey, New York, Ohio, Oregon, Pennsylvania, and West Virginia. The structures vary widely — some cities tax residents only, some tax anyone who works within city limits, and some counties impose taxes that apply regardless of where you work. Pennsylvania alone has over 2,500 local taxing jurisdictions.
New York City’s local tax is the most impactful in the country. NYC residents pay a city income tax with rates from 3.078% to 3.876% on top of New York State’s rates (up to 10.9%). On a $75,000 salary, NYC’s city tax alone costs approximately $2,600/year. Combined with state and federal taxes, a $75K earner in Manhattan keeps roughly $52,400 — about $4,200 less than the same salary in Buffalo, where no city tax applies.
Ohio’s system is uniquely burdensome because nearly every municipality levies its own income tax. Over 600 Ohio cities and villages charge rates from 0.5% to 3.0%. Cleveland charges 2.5%, Columbus 2.5%, Cincinnati 1.8%. If you live in one Ohio city and work in another, you typically pay the work city’s tax and receive a partial credit from your home city — but the credit often doesn’t fully offset, leaving you paying both. A $75,000 earner working in Cleveland and living in a suburb with a 2.0% tax and 1.5% credit effectively pays an extra 1.0% — $750/year — in local tax friction.
Maryland requires all counties to levy a local income tax, with rates ranging from 2.25% (Worcester County) to 3.2% (Howard, Montgomery, Prince George’s counties). These are piggyback taxes calculated as a percentage of your state tax liability or gross income. On a $75,000 salary, Maryland county taxes add $1,688–$2,400/year depending on where you live. This makes Maryland’s total income tax burden (state + local) one of the highest east of the Mississippi.
The practical impact on a $75,000 salary is substantial. In a state with no local taxes — say Virginia or North Carolina — your state income tax is the final line item on your pay stub. But in NYC, you lose an extra $2,600. In a Maryland county at 3.2%, an extra $2,400. In Columbus, Ohio, an extra $1,875. These amounts rival or exceed the entire state income tax in low-tax states like Arizona ($1,875) or North Dakota ($1,050). When comparing job offers or relocation targets, always check for local income taxes — they’re the hidden variable that can swing your take-home pay by thousands.