What income is taxed by the City?

Earned income is subject to the Trenton local income tax but unearned income is not. Common illustrations of earned income include the following paid by the employer(s) before any deductions:

  • Bonuses
  • Commissions
  • Salaries
  • Wages
  • Other Compensation

Unlike for your Federal return, you may not deduct contributions to a retirement plan (IRA, 401k, 403b, or 457b) on your Trenton return. Gross earnings are taxed in the year earned. Most pension and retirement income are not taxable when you are retired and receiving distributions.

Show All Answers

1. Do I have to file a return?
2. Do I have to file a return if I work in Trenton but live elsewhere?
3. What income is taxed by the City?
4. What income is non-taxable?
5. What expenses are deductible from earned income on the return?
6. What if I also earn incidental income on the side?
7. What if I earn incidental income from more than one unincorporated business?
8. How are net operating losses from side businesses treated?