local tax

taxation

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Last updated

June 30, 2026

Quick Summary

Local taxes are levies imposed by local governments to fund public services such as schools, roads, and emergency services. These taxes are a significant source of revenue for local governments, particularly in the United States, where they can account for about half of all local government revenue.12

Common types of local taxes include:
* Property taxes: Primarily levied on land and buildings, these taxes are based on the assessed value of the property.32
* Sales taxes: Taxes on goods and services purchased by consumers, which can vary by locality.3
* Excise taxes: Special taxes on specific goods like fuel, alcohol, or tobacco, often used to discourage consumption or offset related costs.3

The specific types and rates of local taxes can vary greatly depending on legal factors, administrative realities, and local traditions.2

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income tax
Personal deductions
…the United States state and local taxes on property and income are deductible. These deductions are tantamount to subsidies from the national to the subnational governments. Foreign taxes on real property and income are also deductible, although most taxpayers elect instead to credit their foreign income taxes against their U.S.…
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…the United States state and local taxes on property and income are deductible. These deductions are tantamount to subsidies from the national to the subnational governments. Foreign taxes on real property and income are also deductible, although most taxpayers elect instead to credit their foreign income taxes against their U.S.…
Read More