Retiring in Bethlehem

Bethlehem offers retirees genuinely below-average crime and real, deep healthcare access anchored by St. Luke's real headquarters, balanced against a meaningfully above-national property tax rate.

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Pennsylvania's income tax and retirement income

Pennsylvania's real, flat 3.07% state income tax applies to most retirement income sources, plus Bethlehem's own comparatively low combined 1% City/school-district Earned Income Tax -- confirm current specific rules on Social Security, pension, and retirement-account treatment directly with a tax professional.

Real, deep healthcare access

St. Luke's University Health Network's real, current headquarters (16 campuses, 350+ outpatient sites) plus LVHN's nearby Allentown-based presence give Bethlehem retirees genuine, direct multi-system healthcare access.

Genuinely below-average crime, but an above-national property tax burden

Bethlehem's genuinely below-average crime rate is a real advantage for retirees, though its own effective property tax rate (approximately 3.01%) runs well above the national median and should be weighed against a fixed retirement income.

Key takeaways

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Last reviewed: 2026-08-25. Independent research; not financial, tax, or legal advice -- confirm current figures with a local professional before making a decision.