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
$76,375 take-home
States Ranked
11
Median: Maryland
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$76,375$6,36523.6%90$84,861
2Indiana2.95%Flat$76,175$6,34823.8%90$84,639
3Pennsylvania3.07%Flat$76,055$6,33823.9%98$77,607
4Alabama5%Grad.$75,875$6,32324.1%88$86,222
5Kentucky3.5%Flat$75,625$6,30224.4%90$84,028
6Maryland5.75%Grad.$75,388$6,28224.6%112$67,310
7Missouri4%Flat$75,125$6,26024.9%89$84,410
8Michigan4.25%Flat$74,875$6,24025.1%91$82,280
9Delaware6.6%Grad.$74,835$6,23625.2%102$73,368
10Oregon9.9%Grad.$72,690$6,05827.3%110$66,082
11New York10.9%Grad.$72,040$6,00328.0%125$57,632
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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