Updated September 20, 2010
Its not just the IRS that takes tax dollars out of your paycheck, many states and even some cities, counties, and school districts levy their own separate income taxes. These local income taxes are tacked onto any state and federal income taxes you might pay and can range from 0.40% to 3.98%. However, a handful of states have decided that enough of your paycheck goes to taxes and do not allow cities, counties, or municipalities to tack on their own income taxes.
The states that do not allow city, county, and municipal income taxes are:
- California (local wage taxes on employers are allowed)
- Florida
- Illinois
- Massachusetts
- Texas
- West Virginia (Charleston and Huntington do charge flat city service fees of $104 per year)