Local Taxes Add a Hidden Layer
City and county income taxes are separate from state taxes. Even if your state has low rates, local taxes can reduce your take-home pay significantly.
Examples of Local Tax Jurisdictions
Cities like New York, Philadelphia, and Columbus levy local income taxes. These charges often apply to residents and nonresidents working in the area.
Planning Around Local Taxes
If you commute across a local tax border, your employer may withhold the wrong amount. Check your withholding and adjust if necessary to avoid a surprise bill.
Combine Local and State Estimates
Our calculators let you estimate both local and state tax burdens so you can make better choices about where to live and work.
Practical Tips for Remote Workers
Remote employees may still owe local taxes depending on where the employer is located or where work is performed. Verify the rules before signing a contract.