Erie Local Tax Guide (2026)

Understanding how local taxes work in Erie, Pennsylvania, and how they affect your take-home pay.

In this guide

Last updated: October 1, 2026

TL;DR
  • •Erie has a local wage tax that applies to wages and salaries earned in the city.
  • •Residents pay 1.65% on all wages. Non-residents pay 1.65% on Erie wages only.
  • •Local tax is separate from Pennsylvania state tax and federal tax. Both are calculated independently and add to your total tax burden.
  • •Local tax directly reduces your take-home pay. Combined with state and federal taxes, the total tax burden can be significant for high earners.

What Erie local tax costs at three incomes

The 1.65% resident rate is charged on top of federal tax, Pennsylvania state tax and FICA. Priced for 2026, a $75,000 salary loses $1,238 to Erie alone and takes home $58,052: a combined 22.6% of gross across all four.

SalaryErie taxPennsylvania taxFederal + FICATake-homeTotal rate
$50,000$825$1,535$7,645$39,99520.0%
$75,000$1,238$2,303$13,408$58,05222.6%
$120,000$1,980$3,684$26,750$87,58627.0%

Living in Erie rather than only working there costs 0.00 percentage points more: $0 a year on $75,000, since non-residents pay 1.65%.

How Erie compares

Of the 62 US jurisdictions that levy a local income tax, Erie ranks 47th by resident rate. The median is 2.50%, the highest is New York City at 3.078%–3.876%, and the lowest is St. Louis at 1.00%. Immediately above Erie sits St. Joseph County (South Bend) (1.75%) and below it Allen County (Fort Wayne) (1.59%).

Within Pennsylvania, 6 jurisdictions charge a local income tax and Erie is the 6th highest. Same salary, different address:

Pennsylvania jurisdictionResident rateCost on $75,000
Philadelphia3.735%$2,801
Reading3.60%$2,700
Scranton3.40%$2,550
Pittsburgh3.00%$2,250
Allentown1.975%$1,481
Erie1.65%$1,238

What local taxes apply in Erie

Erie has a local wage tax that applies to wages and salaries earned in the city.

Key Takeaway

Local taxes are separate from Pennsylvania state tax and federal tax. They're calculated independently and add to your total tax burden.
Erie local tax rates
Residency StatusRateApplies To
Resident1.65%All wages
Non-resident1.65%Erie wages only

Erie has a local wage tax that applies to wages and salaries earned in the city. The rate depends on whether you're a resident or non-resident.

Erie has a local wage tax that applies to wages and salaries earned in the city.

Residents: If you live in Erie, you pay 1.65% on all your wages.

Non-residents: If you work in Erie but live elsewhere, you pay 1.65% on wages earned in the city.

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How they interact with state taxes

Erie local tax is calculated separately from Pennsylvania state income tax. Both taxes are calculated on your taxable income and are withheld by your employer.

Tax Deduction

Some states allow you to deduct local taxes paid on your state tax return. Check Pennsylvania tax rules to see if you can deduct Erie local tax.

Erie local tax is calculated separately from Pennsylvania state income tax. This means:

  • Local tax is in addition to state tax, not instead of it
  • Both taxes are calculated on your taxable income (or wages, depending on the tax type)
  • Your employer withholds both local and state taxes from your paycheck
  • You may be able to deduct local tax on your state tax return, depending on Pennsylvania tax rules

For example, if you earn $100,000 in Erie, you pay Pennsylvania state tax on that income, plus Erie local tax. The local tax doesn't reduce your state taxable income.

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Who is affected

You're subject to Erie local tax if you live in the city or work in the city, depending on whether you're a resident or non-resident.

You're subject to Erie local tax if:

  • You live in Erie (residents pay on all wages)
  • You work in Erie but live elsewhere (non-residents pay on Erie wages only)
  • You're self-employed and perform work in Erie

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Common paycheck misconceptions

Common misunderstandings about Erie local tax, including when it applies and how it's calculated.

Common misconceptions about Erie local tax:

  • "It's the same as state tax": False. Local tax is separate from Pennsylvania state tax and is calculated independently.
  • "I only pay if I live there": False. Non-residents who work in the city also pay.
  • "Remote work means no tax": If you're a Erie resident, you typically pay on all income regardless of where you work.

Take-home pay impact

Erie local tax directly reduces your take-home pay. The amount depends on your income level and whether you're a resident or non-resident.

Erie local tax directly reduces your take-home pay. For example, if you earn $100,000 as a Erie resident:

  • Local tax: approximately $1650 annually
  • This reduces your bi-weekly paycheck by about $63
  • Combined with Pennsylvania state tax and federal tax, the total tax burden can be significant

To see exactly how Erie local tax affects your paycheck, use our calculator above. You can adjust your income, filing status, and deductions to see how different scenarios affect your net pay.

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Does this apply to you?

Determine whether you're subject to Erie local tax based on where you live and work.

Check Your Pay Stub

Your employer should automatically withhold local tax if you're subject to it. Check your pay stub to verify that local tax is being withheld correctly. If you're unsure, contact your employer's payroll department.

You're subject to Erie local tax if:

  • You live in Erie (residents pay on all wages)
  • You work in Erie but live elsewhere (non-residents pay on Erie wages only)

You're not subject to Erie local tax if you live and work outside the city, even if you're a Pennsylvania resident.

See this with your numbers

Calculate your take-home pay in Pennsylvania