Thursday, July 17, 2008

Earnings Tax Info

Came across these interesting facts on city earnings taxes from the Kansas City Convention Bureau:

17 states have cities and/or counties that impose a local income tax.

25% of large urban cities have a local income tax.


Earnings taxes are extensively used east of the Mississippi, along with property taxes, to provide revenues:

New York and Yonkers, New York

Louisville, Kentucky

2,900 cities in Pennsylvania

Birmingham, Alabama

Most towns and cities in Ohio

All counties in Indiana

Several large cities in Michigan

Wilmington, Delaware

Illinois (employer pays)

Newark, New Jersey (employer pays)

All counties in Maryland and City of Baltimore

Washington, D.C.


And west of the Mississippi:

Portland, Oregon

Los Angeles and San Francisco, California

Las Vegas, Nevada (employer pays)

Denver and Aurora, Colorado (both pay)

St. Louis and Kansas City, Missouri


The mean rate is 2%; Philadelphia is highest at 4.54%.

Only Indianapolis, IN at 0.7% has a tax rate lower than St. Louis’ 1%

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