TakeHomeTax

Allentown Income Tax Calculator

Calculate your take-home pay in Allentown, Pennsylvania including the 1.975% local income tax on top of Pennsylvania's 3.07% state rate.

$
Take-Home Pay (with city tax)
$74,08025.9% effective rate
$6,173/month after all taxes
Allentown City Tax
$1,975
1.975% local rate
Cost of City Tax
$165/mo
$76 per paycheck
Without City Tax
$76,055
$1,975 more per year
State Tax
$3,070
3.07% flat + local
Full Tax Breakdown
Gross Salary$100,000
Federal Income Tax−$13,225
Social Security (6.2%)−$6,200
Medicare (1.45%)−$1,450
Pennsylvania State Tax−$3,070
Allentown City Tax (1.975%)−$1,975
Total Tax$25,920
Annual Take-Home$74,080
Monthly Take-Home$6,173
Biweekly Take-Home$2,849

How Allentown's 1.975% Tax Hits at Different Salaries

SalaryCity TaxTake-Home (with city tax)Take-Home (without)City Tax Cost/Month
$50,000$988$39,833$40,820$82
$75,000$1,481$57,754$59,235$123
$100,000$1,975$74,080$76,055$165
$125,000$2,469$90,357$92,826$206
$150,000$2,963$106,184$109,146$247
$200,000$3,950$138,797$142,747$329

Allentown Local Income Tax: What You Need to Know

Allentown levies a 1.975% local income tax on both residents and non-residents earning income in the city. This is in addition to Pennsylvania's 3.07% state income tax, bringing the combined state and local rate to 5.04%.

Split between city and school district.

The local tax applies to earned income including wages, salaries, and in most cases net self-employment income. Investment income, pensions, and Social Security are typically exempt from local income taxes.

The 1.975% local tax is applied on top of Pennsylvania's 3.07% state income tax and federal income tax. On a $100,000 salary, Allentown's local tax costs approximately $1,975/year — that's $165/month or $76 per biweekly paycheck.

This tax applies to both residents and non-residents earning income in Allentown. Even if you commute from outside the city, you owe the local tax on wages earned within Allentown.

Other Cities with Local Tax in Pennsylvania

Philadelphia
3.75% local rate
$3,750/year on $100K
Pittsburgh
3% local rate
$3,000/year on $100K
Reading
3.6% local rate
$3,600/year on $100K
Scranton
3.4% local rate
$3,400/year on $100K
Erie
1.68% local rate
$1,680/year on $100K
Harrisburg
2% local rate
$2,000/year on $100K
Lancaster
1.1% local rate
$1,100/year on $100K

Frequently Asked Questions

How much is Allentown's local income tax?

Allentown charges a 1.975% local income tax. On a $100,000 salary, this costs approximately $1,975/year. This tax applies to both residents and non-residents earning income in the city.

Can I avoid Allentown's local tax by living in the suburbs?

Partially. Allentown taxes non-residents on income earned within the city at 1.975%. You'd need to both live and work outside the city to avoid it entirely.

What is Allentown's total combined tax rate?

Including Pennsylvania's 3.07% state rate, Allentown's 1.975% local rate, and federal taxes, a $100K earner pays an effective rate of approximately 25.9%.

Is the city tax deductible on my federal return?

Yes, local income taxes are deductible as part of your state and local tax (SALT) deduction if you itemize. However, the SALT deduction is capped at $10,000 ($5,000 for married filing separately), which limits the benefit for many taxpayers.

Related Pages

Pennsylvania Overview$100K in PennsylvaniaPennsylvania Tax BracketsRelocation CalculatorPaycheck Calculator
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