Taxes in Allentown, Pennsylvania
Complete tax guide for Allentown, PA. State income tax up to 3.07%, 1.75% property tax, 6% sales tax. Calculate your total tax burden.
State Income Tax
3.07%
Pennsylvania
Property Tax
1.75%
Effective rate
Sales Tax
6%
Combined rate
Tax Burden
Moderate
Allentown, PA Tax Overview
Allentown earned income tax of 1.95%
Population
125,845
Median Income
$42,318
Cost of Living
88.7 (100 = avg)
State Income Tax
3.07%
Local Income Tax
1.95%
Median Home Price
$175,000
Allentown Tax Calculator
Pre-filled with Allentown median: $42,318
Total Tax Burden in Allentown
$8,401
Take-Home: $33,917 · Effective Rate: 19.85%
Federal Tax
$3,040
7.18% eff.
PA State + Local
$2,124
5.02% eff.
FICA
$3,237
7.65% eff.
Take-Home
$33,917
80.15% kept
Tax Breakdown
| Item | Annual | Monthly |
|---|---|---|
| Gross Income | $42,318.00 | $3,526.50 |
| Federal Income Tax | -$3,039.66 | -$253.30 |
| Pennsylvania State Tax | -$1,299.16 | -$108.26 |
| Allentown Local Tax (1.95%) | -$825.20 | -$68.77 |
| Social Security (6.2%) | -$2,623.72 | -$218.64 |
| Medicare (1.45%) | -$613.61 | -$51.13 |
| Take-Home Pay | $33,916.65 | $2,826.39 |
Property Tax in Allentown
Median Home
$175,000
Annual Tax
$3,063
Monthly Tax
$255
Effective Rate
1.75%
Sales Tax in Allentown
Combined Rate
6%
State Portion
~3.5%
Local Portion
~2.5%
The combined sales tax rate in Allentown is 6%, which is below the national average of 7.12%. On a $100 purchase, you would pay $6.00 in sales tax.
Tax Burden Comparison
| Tax Type | Allentown | Pennsylvania Avg | National Avg |
|---|---|---|---|
| Income Tax | 3.07% + 1.95% | 3.07% | 4.6% |
| Property Tax | 1.75% | ~1.75% | 1.1% |
| Sales Tax | 6% | ~6% | 7.12% |
| Overall Burden | Moderate | — | Moderate |
Tax Saving Tips for Allentown Residents
- Pennsylvania's income tax rate of 3.07% is competitive. You may still benefit from maximizing 401(k) contributions ($23,500 limit) to reduce your taxable income at both state and federal levels.
- Allentown has a local income tax of 1.95%. If you work remotely, verify whether you owe city tax based on where you work or where you live. Some cities only tax people who work within city limits.
- Property tax in Allentown (1.75%) is above the national average. Check if you qualify for homestead exemptions or assessment appeals to reduce your property tax bill.
- Use a Health Savings Account (HSA) if eligible. Contributions are tax-deductible ($4,300 individual, $8,550 family), growth is tax-free, and withdrawals for medical expenses are tax-free.
Other Cities in Pennsylvania
Philadelphia
HighPittsburgh
HighReading
ModerateErie
LowScranton
ModerateBethlehem
ModerateLancaster
ModerateHarrisburg
ModerateYork
LowCalculate Your Full Pennsylvania Tax Burden
See detailed state tax brackets, FICA breakdown, and compare to neighboring states.
Frequently Asked Questions
What are the tax rates in Allentown, PA?
Allentown, Pennsylvania has a state income tax rate up to 3.07%, plus a local income tax of 1.95%. The property tax rate is 1.75% and the combined sales tax rate is 6%. Allentown earned income tax of 1.95%
How much is property tax in Allentown?
The effective property tax rate in Allentown is 1.75%. On the median home price of $175,000, this equals approximately $3,063 per year or $255 per month. This is above the national average of 1.1%.
What is the sales tax rate in Allentown?
The combined sales tax rate in Allentown is 6%, which includes both state and local components. This is below the national average combined rate of approximately 7.12%.
How does Allentown's tax burden compare to other cities?
Allentown has a moderate overall tax burden. The effective total tax rate for a median-income household is approximately 27.9%. The combination of 3.07% state income tax, 1.75% property tax, and 6% sales tax determines the total burden. Cost of living index is 88.7 (100 = national average).
Are there any local taxes in Allentown?
Yes. Allentown imposes a local income tax of 1.95% in addition to the state income tax of 3.07%. Allentown earned income tax of 1.95%