Wednesday, September 9, 2026·2026 Edition
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
$77,091 take-home
States Ranked
11
Median: Alabama
Spread
$6,159
#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
| # | State | Tax Rate | Type | Take-Home | Monthly | Eff. Rate | Cost Index | Cost-Adj. |
|---|---|---|---|---|---|---|---|---|
| 1 | Ohio | 2.75% | Flat | $77,091 | $6,424 | 22.9% | 90 | $85,657 |
| 2 | Pennsylvania | 3.07% | Flat | $76,055 | $6,338 | 23.9% | 98 | $77,607 |
| 3 | Kentucky | 3.5% | Flat | $75,743 | $6,312 | 24.3% | 90 | $84,158 |
| 4 | Missouri | 4.7% | Grad. | $75,389 | $6,282 | 24.6% | 89 | $84,706 |
| 5 | Michigan | 4.25% | Flat | $75,122 | $6,260 | 24.9% | 91 | $82,551 |
| 6 | Alabama | 5% | Grad. | $75,026 | $6,252 | 25.0% | 88 | $85,257 |
| 7 | Indiana | 2.95% | Flat | $74,472 | $6,206 | 25.5% | 90 | $82,747 |
| 8 | New York | 10.9% | Grad. | $74,265 | $6,189 | 25.7% | 125 | $59,412 |
| 9 | Delaware | 6.6% | Grad. | $73,918 | $6,160 | 26.1% | 102 | $72,468 |
| 10 | Maryland | 6.5% | Grad. | $71,687 | $5,974 | 28.3% | 112 | $64,006 |
| 11 | Oregon | 9.9% | Grad. | $70,932 | $5,911 | 29.1% | 110 | $64,484 |
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.