Not limited. Every city can have every religion that's in the game. Currently there are 7 religions in the game - you can add more, in which case there can be even more religions in one city.
However, acquiring a new religion in a city becomes harder with each religion it already has. Three religions in a city are quite usual for me, four I see ever now and then, five I had but once, six or seven I've yet to encounter.
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