Do Local Notifications need user permission on iOS?

It looks like local notifications do not need any user permission. The Permission dialog just shows up for the Push Notifications. I am able to schedule/cancel local notifications without any user permission.

Yes, in iOS8, local notifications do require permissions.

The documentation for registerUserNotificationSettings: stipulates that

If your app displays alerts, play sounds, or badges its icon while in the background, you must call this method during your launch cycle to request permission to alert the user in those ways. Typically, you make this request if your app uses local or push notifications to alert the user to new information involving your app.

It is recommended that you call this method before you schedule any local notifications or register with the push notification service.