Scranton Local Tax Guide (2026)
Understanding how local taxes work in Scranton, Pennsylvania, and how they affect your take-home pay.
Last updated: September 3, 2026
- •Scranton has a local wage tax that applies to wages and salaries earned in the city.
- •Residents pay 3.00% on all wages. Non-residents pay 1.50% on Scranton 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 local taxes apply in Scranton
Scranton has a local wage tax that applies to wages and salaries earned in the city.
Key Takeaway
| Residency Status | Rate | Applies To |
|---|---|---|
| Resident | 3.00% | All wages |
| Non-resident | 1.50% | Scranton wages only |
Scranton 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.
Scranton has a local wage tax that applies to wages and salaries earned in the city.
Residents: If you live in Scranton, you pay 3.00% on all your wages.
Non-residents: If you work in Scranton but live elsewhere, you pay 1.50% on wages earned in the city.
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How they interact with state taxes
Scranton 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
Scranton 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 Scranton, you pay Pennsylvania state tax on that income, plus Scranton local tax. The local tax doesn't reduce your state taxable income.
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Who is affected
You're subject to Scranton 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 Scranton local tax if:
- You live in Scranton (residents pay on all wages)
- You work in Scranton but live elsewhere (non-residents pay on Scranton wages only)
- You're self-employed and perform work in Scranton
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Common paycheck misconceptions
Common misunderstandings about Scranton local tax, including when it applies and how it's calculated.
Common misconceptions about Scranton 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 Scranton resident, you typically pay on all income regardless of where you work.
Take-home pay impact
Scranton local tax directly reduces your take-home pay. The amount depends on your income level and whether you're a resident or non-resident.
Scranton local tax directly reduces your take-home pay. For example, if you earn $100,000 as a Scranton resident:
- Local tax: approximately $3000 annually
- This reduces your bi-weekly paycheck by about $115
- Combined with Pennsylvania state tax and federal tax, the total tax burden can be significant
To see exactly how Scranton 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 Scranton local tax based on where you live and work.
Check Your Pay Stub
You're subject to Scranton local tax if:
- You live in Scranton (residents pay on all wages)
- You work in Scranton but live elsewhere (non-residents pay on Scranton wages only)
You're not subject to Scranton local tax if you live and work outside the city, even if you're a Pennsylvania resident.