Taxes in Reading

Reading layers a genuinely elevated local Earned Income Tax and a severely elevated effective property-tax rate on top of Pennsylvania's simple flat 3.07% state income tax.

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An Act 47-enhanced local Earned Income Tax

Reading's resident EIT (city + school district combined) is cited at 3.60% by the Berks Earned Income Tax Bureau -- enhanced under Pennsylvania's Act 47 financially-distressed-municipality program, above the ordinary Act 511 local cap. Non-residents working in Reading pay 1.00%. A separately-cited, notably lower 2.1% figure conflicts with this -- confirm the current, precise rate directly with BEIT.

A severely elevated effective property-tax rate

Reading's median effective property tax rate ran 6.46% per Ownwell -- multiples above Pennsylvania's own 1.26% Tax Foundation-cited statewide average -- with real ZIP-level variation from 4.40% to 9.42%.

A standard flat Local Services Tax also applies

A $52/year flat Local Services Tax ($47 City + $5 school district) applies to anyone employed within Reading, regardless of residence.

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.