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.
How Allentown's 1.975% Tax Hits at Different Salaries
| Salary | City Tax | Take-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
Frequently Asked Questions
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.
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.
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%.
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.