Taxes in Allentown
Pennsylvania levies a real, genuinely low, longstanding flat 3.07% state income tax -- but Allentown residents specifically owe a real, additional combined 1.975% municipal + Allentown School District Earned Income Tax (collected by Berkheimer Tax Administrator, the Act 32-designated collector for the Lehigh Valley tax collection district) plus a separate flat $52/year Local Services Tax, for a combined approximate marginal rate of 5.045% this record states plainly rather than letting the low state rate alone tell the story.
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Learn morePennsylvania's Flat 3.07% State Income Tax Is Genuinely Low and Simple
Pennsylvania's real, longstanding flat 3.07% state personal income tax applies uniformly to taxable income statewide -- a genuinely low and simple rate relative to many graduated-bracket states, and notably simpler than several other states built elsewhere in this project.
Allentown's Own Combined Local EIT Adds a Real, Additional Layer -- Collected by Berkheimer
On top of the state's flat rate, Allentown residents owe a real, combined 1.975% Earned Income Tax: the City of Allentown's own portion (approximately 1.475%) plus the Allentown School District's own portion (0.5%), per the school district's own cited 2024-2025 budget documentation. Both portions are collected together by Berkheimer Tax Administrator, the Act 32-designated tax officer for the Lehigh Valley's tax collection district. This record discloses that a separate, lower-confidence source cited a lower 1.35% figure -- likely outdated or a city-only figure omitting the school-district portion -- and uses the school-district-budget-sourced 1.975% figure as its primary, canonical number.
A Separate Flat $52/Year Local Services Tax Also Applies
Beyond the percentage-based EIT, most Allentown workers also owe a separate, flat $52/year Local Services Tax (LST) -- a real, additional, if comparatively small, cost this record states explicitly rather than folding into the EIT figure.
Pennsylvania's Real, Statewide Local-Tax Complexity, and Where Allentown Sits Within It
Pennsylvania's local Earned Income Tax system, governed by Act 511 (1965) and standardized for collection under Act 32 (2008), means most Pennsylvania municipalities and school districts each levy their own EIT, collected through one of several Act 32-designated tax collection districts (Berkheimer and Keystone Collections Group are two of the most common collectors statewide) -- a real, genuine complexity distinct from a simple single-state-rate system, and one that varies meaningfully by the specific Pennsylvania municipality a mover targets. Philadelphia is a real, distinct exception, levying its own separate Wage Tax rather than participating in the EIT system -- not directly relevant to an Allentown-area move, but worth knowing if a mover is also comparing Philadelphia.
Lehigh County Property Tax: A Real, Meaningfully Above-Average, Genuinely Complex Rate
As detailed in full on the property-taxes topic page, Lehigh County's effective property tax rate carries a real, wide, disclosed spread across sources (approximately 1.48%-2.87%) tied to the county's 2013-base-year property assessment mechanic, meaningfully above the national average.
Key takeaways
- Pennsylvania's flat 3.07% state income tax is genuinely low and simple -- a real advantage relative to many graduated-bracket states.
- Allentown residents owe a real, additional combined 1.975% local EIT (City of Allentown ~1.475% + Allentown School District 0.5%), collected by Berkheimer -- combined approximate marginal rate ~5.045% with the state rate.
- A separate flat $52/year Local Services Tax also applies to most Allentown workers, beyond the percentage-based EIT.
- Pennsylvania's local EIT system (Act 511/Act 32) is genuinely complex statewide -- Allentown's own combined 1.975% rate is specific to Allentown and should not be assumed for other Pennsylvania municipalities.
- Lehigh County's effective property tax rate carries a real, wide, disclosed spread (~1.48%-2.87%), tied to the county's 2013-base-year assessment mechanic, and runs meaningfully above the national average.
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