How to Know If You Have to File City Taxes
Most American cities do not require that a local income tax be paid, but if you're a new resident, you want to be sure. You don't want to risk having to pay delinquency fees by not paying the city's tax on time. A little effort in researching your local tax requirements may provide an important level of protection. If you do have to pay city taxes, find out if you can file them online, which may be more convenient for you.
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Instructions
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Check to see if you are in a state that allows city governments to levy an income tax. Alabama, Colorado, Delaware, Indiana, Kentucky, Maryland, Michigan, Missouri, New York, Ohio, Oregon and Pennsylvania all have municipalities with income taxes. City income taxes range from as high as 3.98 percent in Philadelphia to as low as .60 percent in Eugene, Ore.
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Determine if all of your income is subject to your city's income tax. Some income may be exempted from the tax, so check with your city hall. For instance, Columbus, Ohio, residents are not required to pay city taxes on income generated from Social Security benefits, pensions, welfare payments, state unemployment, workers' compensation, interest and dividends.
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See if you are eligible for an income tax reduction based on your residency. Even if you work in the city, you may pay a smaller amount of tax if you live outside of the city limits. In Louisville, Ky., for example, residents pay a city income tax of 2.20 percent, while nonresidents pay a reduced income tax of 1.45 percent.
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