TakeHomeTax

States With Local Income Tax (2026)

These states add city or county income taxes on top of state taxes. Your take-home may be lower than the state rate suggests.

#1 State
Ohio
$74,875 take-home
States Ranked
11
Median: Kentucky
Spread
$4,335
#1 vs #11 difference

Key Takeaways

These 11 states add city or county income taxes on top of the state rate. Local taxes can add 1–4% to your total burden, significantly reducing take-home pay beyond what the headline state rate suggests.

Local taxes hit hardest in states like New York (NYC adds up to 3.876%), Ohio (cities like Columbus charge 2.5%), and Maryland (counties add 2.25–3.2%). When comparing states, always factor in the local tax — a state with a 5% rate plus 2.5% local tax is effectively a 7.5% state.

Full Rankings

#StateTax RateTypeTake-HomeMonthlyEff. RateCost IndexCost-Adj.
1Ohio2.75%Flat$74,875$6,24025.1%90$83,194
2Indiana2.95%Flat$74,675$6,22325.3%90$82,972
3Pennsylvania3.07%Flat$74,555$6,21325.4%98$76,077
4Missouri4.8%Grad.$74,505$6,20925.5%89$83,713
5Alabama5%Grad.$74,375$6,19825.6%88$84,517
6Kentucky3.5%Flat$74,125$6,17725.9%90$82,361
7Maryland5.75%Grad.$73,888$6,15726.1%112$65,971
8Michigan4.25%Flat$73,375$6,11526.6%91$80,632
9Delaware6.6%Grad.$73,335$6,11126.7%102$71,897
10Oregon9.9%Grad.$71,190$5,93328.8%110$64,718
11New York10.9%Grad.$70,540$5,87829.5%125$56,432
Pro Tip
If you live in a local-tax state, your specific city or county matters. Moving from a high-local-tax city to a suburb in the same state could save you 1–2% of your income.

Related Rankings

9 States With No Income TaxStates With Flat Income Tax RatesStates With Graduated Income TaxStates With the Highest Take-Home PayStates With the Lowest Take-Home PayHighest Effective Tax Rate States
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