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Tax Terms

Local Income Tax

City or county income tax levied in some jurisdictions (e.g., NYC, Philadelphia, Detroit).

Common paystub code: LOCAL / CITY

Full Definition

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.

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