University of Wisconsin–Madison

The (Mostly Untapped) Power of Local Income Taxes

Type Policy Brief or Report
Year 2025
Level City or Town
State(s) All States
Policy Areas Economic Justice, Finance & Procurement
Cities face growing pressure to fund public services fairly and sustainably, but over-reliance on regressive taxes like sales and property taxes burdens low- and middle-income residents. Local income taxes-especially those with progressive structures-offer a more equitable, flexible, and underused tool to diversify revenue, improve fiscal stability, and shift tax responsibility toward higher-income households.

Remove Entry

Are you sure you want to remove this?

There was an error communicating with the server.

Please try again later.

There was an error while saving your data.

Please try again later.

Error

Please try again later.

Update Page Content

You are leaving the page

Please make sure you saved all of the modules to avoid losing any data.