Box 20 on your W-2 is the name of the local taxing jurisdiction — a city, county, school district, or similar — that collected income tax from your wages. It sits in the bottom-right of the form and works as the label for the two dollar figures next to it: Box 18 (wages subject to that local tax) and Box 19 (local tax withheld).1Internal Revenue Service. General Instructions for Forms W-2 and W-3 (2026) If Box 20 is blank, your employer didn’t withhold any local income tax, usually because none applies where you live or work.
Why Box 20 Might Be Blank
Local income taxes exist in only about 17 states plus the District of Columbia. Ohio, Pennsylvania, Indiana, Kentucky, Maryland, and Michigan are the states where they show up most often; large parts of the South, West, and Mountain regions have none. Rates generally run from under 1% to about 3% of wages, with a handful of cities higher.
So a blank Box 20 is normal for most of the country. It becomes worth a second look if you recently moved, changed jobs, or started commuting across a city or county line, because any of those can put you into a local tax jurisdiction for the first time.
How to Read the Locality Name
The entry might read something like “City of Columbus,” “Allegheny County,” or “Philadelphia SD.” The format is set by the local tax authority, not by your employer, so wording varies. Whatever it says, it’s telling you where the money withheld in Box 19 was sent.
Two Localities on One W-2
Your W-2 has room for two sets of state and local information, split by a dotted line. If you owed tax to two localities during the year, both can appear on the same form, each with its own Boxes 18, 19, and 20. More than two localities means your employer issues a second W-2 for the extras.2Internal Revenue Service. 2026 General Instructions for Forms W-2 and W-3
When you type this into tax software, keep each locality’s figures paired with its own name. A frequent mistake is duplicating the state wages in Box 16 and state tax in Box 17 across both lines. Only one line per state should carry those state figures; the second line for the same state should hold only the local numbers.
If You Live in One City and Work in Another
This is where Box 20 causes the most confusion and the most surprise bills. Withholding typically follows the work location, so Box 20 usually names the city where you earn the money. If your home city also levies a local income tax, it may still expect you to file and pay there, even though nothing was withheld for it.
Many home jurisdictions give a credit for tax paid to the work jurisdiction, but the rules aren’t uniform. Some cap the credit at the home city’s own rate, so if the work city taxes at a lower rate, you owe the difference at home. Some offer no credit at all. Check directly with your home jurisdiction’s tax office; the answer isn’t on your W-2.
One boundary worth naming: this local-to-local credit is not the same as the state credit for tax paid to another state, and your federal return does not offer a credit for local income taxes paid to another locality.
What Box 20 Means at Filing Time
An entry in Box 20 is a strong signal that you need to file a local return, even if withholding covered the tab. Most local jurisdictions require a return to confirm the numbers, and some want quarterly estimated payments when withholding falls short. Skipping the local return is one of the most common tax oversights, especially after a move or a job change.
Local filing deadlines often mirror April 15, but not always, and a federal extension doesn’t automatically extend a local deadline. Confirm the date with the authority named in Box 20.
Tax software uses the Box 20 locality name to generate the correct local forms. If your software doesn’t recognize the name, you’ll likely need to file the local return separately through the jurisdiction’s own portal or on paper.
Local Tax and the SALT Deduction
The local income tax in Box 19 counts toward the state and local tax (SALT) itemized deduction on your federal return. For 2026, the SALT deduction is capped at $40,000 for most filers, or $20,000 if married filing separately, and that cap covers state income tax, local income tax, and property tax combined.3Internal Revenue Service. Topic No. 503, Deductible Taxes If you take the standard deduction, Box 19 won’t reduce your federal bill, but you still need to file any required local return.
When Box 20 Is Wrong or Missing
The usual problems are a blank Box 20 when local tax was clearly withheld, the wrong city or county name, or wages assigned to the wrong jurisdiction after a mid-year move. Any of these will make your local return disagree with what the jurisdiction has on file.
Start with your employer’s payroll department. They issue a corrected form called a W-2c.4Internal Revenue Service. About Form W-2 C, Corrected Wage and Tax Statements Federal rules say the employer should provide it “as soon as possible” after discovering the error, without a fixed deadline in days, so plan to follow up.5Social Security Administration. Helpful Hints to Forms W-2c/W-3c Filing
Your original W-2 is due to you by January 31.6Social Security Administration. Deadline Dates to File W-2s If that date passes with no W-2, or the Box 20 information looks wrong and your employer isn’t responding, you can call the IRS at 800-829-1040 and they’ll contact the employer for you. If a deadline is closing in, use your final pay stub to estimate the local figures, file on time, and amend once the corrected W-2 arrives.