My company has been taking locality tax out of my check for 7 years,but are they wrong for doing so?

Discussion in 'Experienced Truckers' Advice' started by Trucks66, Dec 10, 2025.

  1. Trucks66

    Trucks66 Light Load Member

    200
    450
    Nov 3, 2017
    0
    So I live in Georgia and I start my 14 hour clock every day at the company terminal I work for in Georgia. I drive to Alabama to pick up my load and drive back to Georgia making a few deliveries and when the trailer is empty, I drive the truck back to the company terminal in Georgia and do my 10 hour there every single day. Rinse and repeat. My company has been taking locality tax out of my check every week for the past 7 years, but I noticed that on my last check, they actually gave a small portion of it back. So it got thinking.......... Have they realized that they shouldn't have been taking locality tax out of my check at all?

    Going back over the years, they have taken well over 10 grand from me. If I start my day in Georgia and end my day in Georgia where I live, do I have an argument to get all of the locality tax they have taken from me back?
     
  2. Truckers Report Jobs

    Trucking Jobs in 30 seconds

    Every month 400 people find a job with the help of TruckersReport.

  3. Banker

    Banker Road Train Member

    4,344
    13,347
    Aug 19, 2012
    0
    Are you are starting and ending your day in the rig in the same local they are taking taxes out for? My CPA pro rates my local tax obligation based on an estimated percentage of my work that is done in that local. If I was audited the logs would have to justify what I claim.
     
  4. Trucks66

    Trucks66 Light Load Member

    200
    450
    Nov 3, 2017
    0
    No. My companies terminal is in Decatur, Georgia. I live in Decatur Georgia. Every day, I leave my house, get in my car and drive to my companies terminal where the truck is located. I start my 14 hour clock right there in Decatur and drive a couple of hours to Alabama to pick up a load and drive back to Georgia where I ultimately shut the truck down for 10 hours.

    I'm only in Alabama for no more than 1 hour to unhook the empty and hook up to the loaded. All of the locations I make deliveries to are in Georgia.
     
  5. bryan21384

    bryan21384 Road Train Member

    15,460
    33,635
    Sep 18, 2009
    Memphis, TN
    0
    Its not unheard of. I talked to someone in Ohio that something similar come out of their checks. It depends on local legislation.
     
  6. Banker

    Banker Road Train Member

    4,344
    13,347
    Aug 19, 2012
    0
    If your terminal is in Decatur, you live in Decatur and they are paying Decatur occupational taxes they are correct. Am I miss-understanding something?
    You may not have to pay 100% of the occupational tax if only part of your work day is in Decatur.
     
    tscottme and Lonesome Thank this.
  7. Trucks66

    Trucks66 Light Load Member

    200
    450
    Nov 3, 2017
    0
    95 percent of my work day is in Georgia.
     
  8. Banker

    Banker Road Train Member

    4,344
    13,347
    Aug 19, 2012
    0
    I thought you were talking about local tax not state tax. Are you talking about Georgia taxes or Decatur city occupational tax?
     
    Last edited: Dec 10, 2025
  9. Banker

    Banker Road Train Member

    4,344
    13,347
    Aug 19, 2012
    0
    100% of your state tax will be paid to the state you live in. The percentage of the time you work in a “local taxing authority” will be paid to them. Sometimes that local taxing authority is paid regardless of whether you live there.
     
  10. Trucks66

    Trucks66 Light Load Member

    200
    450
    Nov 3, 2017
    0
    I see. I pretty much have no knowledge of locality tax. I just thought just because I started and ended my clock in Georgia, that I would be exempt from paying locality tax. Only reason I have began to question it, is because not only did I not pay any locality tax on my previous paycheck, they actually paid me back some of the locality tax that they have been taking from me, even though I have done nothing different that week compared to every other week.
     
    Banker Thanks this.
  11. JB7

    JB7 Heavy Load Member

    953
    1,647
    Dec 13, 2022
    Laurel, MD
    0
    You may have reached a cap/maximum. Like there is with Social Security, a max of $176,100 in wages. Anything over that no SS is deducted. Check prior years to see what you paid for the entire year. Ask your company and let them explain.
     
  • Truckers Report Jobs

    Trucking Jobs in 30 seconds

    Every month 400 people find a job with the help of TruckersReport.