Do you WORK in that locality?   Ask your employer why tax is being withheld for the locality.

No, my office is based in Manhattan, though I have been working from home. Ive asked them but figured Id also get some feedback from the community because this seems very strange. I wasnt taxed for this city in 2020, and none of my info has changed since 2019.

If you do not live there or work there, you need an explanation from your employer or the payroll office as to why they are withholding tax for a locality that you are not living or working in.   It may be that you will need to file a non-resident 2021 tax return for that locality to get a refund of tax withheld.

Yeah..I've reached out to them and am waiting to hear the explanation. Most likely this was a clerical error on their part..do you have any more info or know where I can find info on getting those taxes back? Can I file the non-resident form now or do I have to wait until next year? Would that be included in my refund for next year? Side note..I've had to pay fed taxes almost every year since I started at this company..very strange !!

Also, THANK YOU for your help!!!! It is very much appreciated 🙂

Sorry--cannot offer further help with a local tax.   TurboTax only prepares a few city or local tax returns along with state returns, so for most local or city returns you are on your own.   You will need to research this and find out from the locality how to go about getting a refund.

https://ttlc.intuit.com/questions/1899325-which-city-tax-returns-can-i-do-in-the-turbotax-state-prog...

Hope you are able to get your money back from the town!

If you have had to pay federal tax every year that means you are not having enough federal tax withheld from your paychecks.   You could change the W-4 you provide to the employer to adjust that.

https://ttlc.intuit.com/community/tax-topics/help/what-to-know-about-the-new-2020-irs-form-w-4-emplo...

https://www.irs.gov/pub/irs-pdf/fw4.pdf

https://www.irs.gov/individuals/tax-withholding-estimator