Your state's tax rate is only part of the picture in some places.
Updated October 2026.
State income tax gets most of the attention, but in a number of states it is not the only deduction beyond federal tax and FICA. Cities, counties and school districts in some states charge their own income tax on top of it. It is easy to miss until a paycheck comes in lower than a state-level calculator predicted.
Nine states charge no income tax on wages: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming. Sixteen use a flat rate, from 2.5% in Arizona to 5.3% in Idaho. The rest use graduated brackets, where the rate rises with income, up to 13.3% at the top in California.
The headline rate is only part of it. Standard deductions and exemptions differ widely, so two states with similar rates can produce quite different tax bills. Each of our state pages shows the 2026 brackets and a take-home table for that state.
Most Americans pay no local income tax. In the states below, many or all workers do.
| State | Who charges it | Typical rate |
|---|---|---|
| Maryland | Every county and Baltimore City | 2.25% to 3.3% |
| Ohio | Most cities and villages, many school districts | 2% to 2.5% in the large cities |
| Pennsylvania | Nearly every municipality and school district | 1% to 2%; Philadelphia about 3.75% |
| Indiana | All 92 counties | 0.5% to 3% |
| Kentucky | Most cities and counties | 1% to 2.25% |
| New York | New York City and Yonkers | NYC 3.078% to 3.876% |
| Michigan | 24 cities, including Detroit | 1% to 2.4% for residents |
| Missouri | Kansas City and St. Louis | 1% |
| Alabama | Birmingham and a few other cities | About 1% |
| Delaware | Wilmington | 1.25% |
A few other places charge something smaller. Several Colorado cities, including Denver, take a flat monthly occupational fee. Many Iowa school districts add a surtax calculated on your state tax. Some West Virginia cities charge a small weekly service fee.
Local tax can rival the state tax itself. On a $60,000 salary, Ohio's state income tax is about $1,200 a year, and a 2.5% city tax in Columbus or Cleveland adds about $1,500 more. In Maryland, a county tax near 3% adds well over half as much again as the state tax.
This is the part that confuses people, because the rule changes from place to place:
If you work from home, the city that can tax you may be your home city and not your employer's. Rules on remote work have changed in several states in recent years, so check with your payroll department if your work location has changed.
Normally the state where you work taxes your wages, and your home state gives you a credit so the same income is not taxed twice. Some neighboring states go further with reciprocal agreements, under which you pay income tax only to the state where you live. New Jersey and Pennsylvania have one, as do several states in the Midwest and around Washington, D.C. If you qualify, you give your employer a form so that the right state's tax is withheld.
Your pay stub is the quickest check. Local tax appears as its own line, usually with the name of the city, county or school district. Your state's revenue department or your city's tax office publishes the current rate, and your payroll department can tell you which jurisdictions it withholds for.
The paycheck calculator covers federal income tax, Social Security and Medicare, state income tax and state payroll programs such as disability insurance. It does not include local income taxes, because they vary by city and county. If you live or work in one of the places above, subtract your local rate from the result. Each state page describes the local taxes in that state.
Sources: Tax Foundation, State Individual Income Tax Rates and Brackets, 2026; Tax Foundation, Local Income Taxes: A Primer.