Is Ohio the only state with Local/Municipal income taxes?
Ohio is one of the very few…lucky us!? We can thank Toledo for enacting the first city tax in 1946. In 2005, the most recent year for which data is available, 558 municipalities (234 cities and 324 villages) levied the tax in Ohio. Rates ranged from a low of 0.30% to 3.00%. Pennsylvania has the largest number of municipal income taxes. Ohio is second. Togeteher Ohio and Pennsylvania make up the majority of city tax compliance in the US. Coming in distant last places are are Michigan, Kentucky and Indiana (county level). Select cities like Newark NJ, New York City and Yonkers NY also have city taxes. San Francisco CA has a 1.5% employer tax and, generally speaking, better weather than Ohio.
