Table 1 page 1 of 2 See page 2 Notes Column for comments for asterisks

State

First
Used (Year
And City)

(A)
Number
& Type of Jurisdictions Using Tax

(B)
Tax Base

(C) & (D)
Tax Rates
Residents

(E)
Tax Rates Non-Residents

Alabama

1956
(Gadsden)

5 municipalities

Earnings

1% in 3 cities
2% in 2 cities

 

Delaware

1969
(Wilmington)

1 city

Earnings

1 %

Same rate

Indiana

1973

36 counties*
(out of 92)

AGI**

Local option of 3 rates:
%, %, or 1%

%, but only if county of
residence has no tax;
otherwise 0%

Kentucky

1948
(Louisville)

34 munici-
palities
2 counties

Earnings*

Local option permitted actual range: % to 2.5%

Same Rate

Maryland

1966
(Baltimaore)

23 counties
plus City of
Baltimore
100% coverage

State personal income tax liability

Local option* 20% to 50% sur-
Charge by increments of 5%; Most levy maximum 50% rate.

Zero

Michigan

1962
(Detroit)

16 munici-
palities

Similar to state and Federal AGI less $600 personal exemptions*

Adoption optional, but no local option as to rates: Detroit, 2%; all others, 1%

% (no option) but on
income earned in juris-
diction only

Missouri

1948
(St. Louis)

2 cities

Earnings

Actual rates 1% in both
St. Louis and Kansas City

Same rate

New York

1966
(N.Y. City)

1 City

Similar to state and Federal AGI with full range of exemptions & deductions

Rates range from .7% on 1st $1,000 of taxable income to 3.5% on income over $30,000

Lower rate, but on a different base as well

Ohio

1946
(Toledo)

335 munici-
palities

Earnings

Local option; actual rates range from 1/4% to 2.0%

Practice not uniform, but most cities tax at same rate

Pennsylvania

1939 (Phila.)

3,765 municipalities, townships & school dist

Earnings

Local option; range from .25% to 1.0% * Philadelphia rate 3.3125%

Same rate, but only if jurisdiction of residence has no tax**

Washington, D.C.

   

Similar to Federal, with full range of exemptions and deductions

Range from 2% on 1st $1,000 of taxable income to 10% on income over $25,000

Zero

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Table 1 Continued page 2 of 2

State

(E)

Administration

(G)

Corporate Income

Local Income taxes as % of all Local Tax Revenues

Population of State Covered

Notes

Taxed

Rate

Allocation

Alabama

Local

No

   

20% Birmingham,
1% rate
58% Gadsen, 2% rate

   

Delaware

Local

Yes

1 %

One factor gross receipts

37% Wilmington

   

Indiana

State

No

     

20+%

*All revenues are distributed to municipalities and school dist. Within the county.
**A piggyback system; state income tax is a flat rate applied to taxable AGI

Kentucky

Local

Yes

   

Between 48% & 56% in four larger cities

39%

*All earnings earned within the taxing jurisdiction, but no earnings earned elsewhere.

Maryland

State

No

   

Baltimore: 14.2%
Statewide : about 30%

100%

*Adoption is mandatory, but choice of rates is optional.

Michigan

Local

Yes

1% (2% in Detroit)

3 factors

Detroit: 35%
Saginaw: 34%
Flint: 57%
Grand Rapids: 47%

27%

*Expenses of earning income are the only deduction allowed

Missouri

Local

Yes

1%

3 factors

Kansas City: 37%
St. Louis: 29%

24%

 

New York

Local

Yes

 

3 factors

21% (N.Y.C.)

43%

 

Ohio

Local

Yes in some, No in others

   

Generally between 50% and 80% for larger cities

65%

 

Pennsylvania

Local

No

   

Philadelphia: 63% generally between 15% and 30% elsewhere

100%

*Overlapping cities and school districts split 50-50.
**Except in Phildelphia, where non-residents taxed regardless.

Washington, D.C.

 

Yes

9%

3 factors