The wages only denote the proportion of the wages listed above that relate to the associated local tax. You shouldn't concern yourself with two local wages on the W-2. What you SHOULD look at is why there are two associated local taxes. (box 19) There can be any number of reasons for that. You may have moved during the year and the employer took out taxes from two different municipalities at different times of the year. There may be a "local split" where you are sending half of the wage tax to one tax collector and the other half to the other. Sometimes employers will misclassify certain assessments as local taxes and list them on boxes 18-19. Certain "EMS" or "right-to-work" taxes withheld in certain municipalities, around $50 where I live, is not a local wage tax but every now and then an employer will list it down there incorrectly. I have also seen a Pennsylvania assessment of unemployment insurance (some 3 dollars) listed as a local tax when it should have been accurately shown in box 14. Box 20 should have a word or two about where each tax is going. That is very important. What should you do about it? Well, let's start with your local 2007 tax return. If you file to only one tax collector, and the sum total of the local taxes equal your tax liability, then file your local return with the sum total of the local tax (boxes 19) as your total withholding. If one of the taxes is one of the non-taxes listed above, exclude it. Typically, your local withholding should equal your tax liability. Sometimes, however, localities will withhold for where they are located and not where you live, so there may be a difference there. Your employer may know why there are two lines shown for your local tax. Ask them about it, and if your local taxes are being withheld incorrectly, ask if they can change it.