Monday, June 15, 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
$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
| # | State | Tax Rate | Type | Take-Home | Monthly | Eff. Rate | Cost Index | Cost-Adj. |
|---|---|---|---|---|---|---|---|---|
| 1 | Ohio | 2.75% | Flat | $76,375 | $6,365 | 23.6% | 90 | $84,861 |
| 2 | Indiana | 2.95% | Flat | $76,175 | $6,348 | 23.8% | 90 | $84,639 |
| 3 | Pennsylvania | 3.07% | Flat | $76,055 | $6,338 | 23.9% | 98 | $77,607 |
| 4 | Alabama | 5% | Grad. | $75,875 | $6,323 | 24.1% | 88 | $86,222 |
| 5 | Kentucky | 3.5% | Flat | $75,625 | $6,302 | 24.4% | 90 | $84,028 |
| 6 | Maryland | 5.75% | Grad. | $75,388 | $6,282 | 24.6% | 112 | $67,310 |
| 7 | Missouri | 4% | Flat | $75,125 | $6,260 | 24.9% | 89 | $84,410 |
| 8 | Michigan | 4.25% | Flat | $74,875 | $6,240 | 25.1% | 91 | $82,280 |
| 9 | Delaware | 6.6% | Grad. | $74,835 | $6,236 | 25.2% | 102 | $73,368 |
| 10 | Oregon | 9.9% | Grad. | $72,690 | $6,058 | 27.3% | 110 | $66,082 |
| 11 | New York | 10.9% | Grad. | $72,040 | $6,003 | 28.0% | 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.