This is generally directed to systems and methods for local tone mapping of high dynamic range (“HDR”) images. For example, a HDR image can have its larger dynamic range mapped into the smaller dynamic range of a display device. In some embodiments, to perform the local tone mapping, a RGB to Y converter can be used to convert the input image signal to a luminance signal in the YCgCo color space, a shape adaptive filter can be used to separate the luminance signal into its illumination and reflectance components, contrast compression can be applied to the illumination component, image sharpening can be applied to the reflectance component, and the processed illumination and reflection components can be used to calculate a processed RGB signal. The dynamic range of the processed RGB signal can then be mapped into the dynamic range of the display device.