Changes

==States and Local Municipalities==

==States and Local Municipalities==

Most states and even some cities asses a tax on income, further increasing the amount of money withheld before a worker even sees their paycheck. For example, in [[Maryland]], each [[county]] and the [[independent city]] of [[Baltimore]] collect a local income tax of up to 3.2%<ref>[http://individuals.marylandtaxes.com/incometax/localtax.asp Maryland Local Income Tax]</ref> on top of the state income tax, whose marginal rate is 4.75% for most earners and 6.25% for the top earners.<ref>[http://individuals.marylandtaxes.com/incometax/ratesbrackets.asp Maryland Income Tax Rates and Brackets]</ref>  This means that a taxpayer in [[Montgomery County, MD|Montgomery County]] pays a combined state and county rate of 7.95% if that person is a typical earner or 9.45% if that person is a top earner.

Most states and even some cities assess a tax on income, further increasing the amount of money withheld before a worker even sees their paycheck.

 

However, not all states use a progressive form of income tax, some use a flat rate, and generally assess income tax only on income earned within that state.

==Other Taxation systems==

==Other Taxation systems==