Taxation in the US (2022): State and local taxation: State income tax (Part Two)

States with local income taxes in addition to state-level income tax.

The following states have local income taxes. These are generally imposed at a flat rate and tend to apply to a limited set of income items.

Alabama:

Some counties, including Macon County, and municipalities, including Birmingham (employees on payroll only).

California:

San Francisco (payroll only).

Colorado:

Some municipalities, including Denver and Aurora (flat-fee Occupational Privilege tax for privilege of working or conducting business; filed with municipality imposing fee).

Delaware:

Wilmington (earned, certain Schedule E income, as well as capital gains from sale of property used in business; income must be reported to the City of Wilmington if Wilmington tax is not withheld by employer.)

Indiana (all local taxes reported on state income tax form):

All counties.

Iowa (all local taxes reported on state income tax form):

Many school districts and Appanoose County.

Kansas:

Some counties and municipalities (interest and dividend income; reported on separate state form 200 filed with the county clerk).

Kentucky:

Most counties, including Kenton County, Kentucky, and municipalities, including Louisville and Lexington (earned income and certain rental income that qualifies as a business; reported as Occupational License fee/tax by employer or as Net Profits tax by business, filed with county or municipality imposing tax).

Maryland: (all local taxes reported on state income tax form):

 All counties, and the independent city of Baltimore.

Michigan:

Many cities, including Detroit, Lansing, and Flint (most income above a certain annual threshold; reported on form issued by imposing city or on separate state form 5118/5119/5120 in the case of Detroit).

Missouri: (all other cities are prohibited from imposing local income tax):

Kansas City, (earned income; income must be reported to Kansas City if Kansas City tax is not withheld by employer; residents must file the Earnings tax form to report wages on which Kansas City income tax is not withheld and the Business Earnings tax form to report self-employment income).

St. Louis, (earned income; income must be reported to the City of St. Louis if St. Louis tax is not withheld by employer; residents must file the Earnings tax form to report wages on which St. Louis income tax is not withheld and the Business Earnings tax form to report self-employment income).

New Jersey:

Newark (payroll only).

New York (all local taxes reported on state income tax form):

New York City, (employees with NYC section 1127 withholding should also file New York City Form 1127).

Yonkers,

Metropolitan Commuter Transportation District (self-employed with income sourced from New York City, as well as the counties of Dutchess, Nassau, Orange, Putnam, Rockland, Suffolk, and Westchester).