Wilkes-Barre local tax guide
Who pays Wilkes-Barre's local tax
City residents owe 3% on earnings from every job, including work in Scranton, Hazleton, or a remote role for an out-of-state company. People who live outside the city and work at the Luzerne County courthouse, Wilkes University, King's College, or another downtown employer pay the higher of their own resident rate or the city's 1% nonresident rate. In the Wyoming Valley that varies: Plains Township residents pay 1%, while boroughs across the Susquehanna such as Kingston have resident rates above that, so commuters from there keep paying their home rate.
How Wilkes-Barre's earned income tax works
The 3% resident rate is a Pennsylvania earned income tax on wages and net profits. The City of Wilkes-Barre levies the bulk of it and the Wilkes-Barre Area School District a small share. That is the reverse of Pittsburgh, where the same 3% total is mostly a school tax.
Berkheimer collects both the earned income tax and the Local Services Tax for Wilkes-Barre as the collector for the Luzerne County tax collection district. Neighboring townships in the same school district, such as Plains, Laflin, and Laurel Run, levy only the basic rate, which makes the city line the main dividing point for local tax in the valley.
Worked example: a $75,000 salary
A single Wilkes-Barre resident earning $75,000 pays $7,670 in federal income tax, $2,303 in Pennsylvania's flat 3.07% tax, $4,650 in Social Security, and $1,088 in Medicare. The city and school district EIT adds $2,250, for take-home pay of $57,040, or about $4,753 a month.
A commuter paying 1% on the same salary keeps $58,540, so living in the city costs $1,500 more per year at this income. At $60,000 the resident tax is $1,800, and at $100,000 it is $3,000.
Withholding and filing
Your employer sets your local withholding from the Residency Certification Form, which lists the PSD codes for your home and work addresses. If you work for an employer outside Pennsylvania that does not withhold local tax, you pay Wilkes-Barre's 3% yourself, through quarterly estimates or the annual local return due April 15.
Anyone whose job is in the city also pays the Local Services Tax, a flat charge of roughly a dollar a week. Our take-home figures leave it out. Workers with low earnings in the city can file for an exemption.
How Wilkes-Barre compares
Wilkes-Barre's $2,250 resident bill at $75,000 is the same as Pittsburgh's and $300 less than nearby Scranton's $2,550. It is $551 below Philadelphia.
Compared with Lehigh Valley cities an hour south, Wilkes-Barre is expensive to live in: an Allentown resident pays $769 less and a Bethlehem resident $1,500 less at the same salary. For commuters, the 1% nonresident rate matches most of the state.
Tips for Wilkes-Barre paychecks
Price a home just outside the city
A Plains Township or Laflin address with a 1% rate saves $1,500 a year at $75,000 compared with living in Wilkes-Barre, if you keep the same job.
Remote workers: confirm withholding
If your employer is out of state, check that it withholds Wilkes-Barre's 3%. If not, set aside the tax or make quarterly payments to Berkheimer.
Students and part-timers: check the LST exemption
Part-time workers at city colleges and shops may earn little enough to qualify for the Local Services Tax exemption. Ask payroll for the certificate.
Compare cities before moving
See every Pennsylvania city side by side in the city take-home calculators.