If you live or work in Erie, Pennsylvania, your tax bill stacks in layers. Erie, PA tax rates for 2026 include a City of Erie property tax millage of 14.12 mills (added to separate county and school district millage), a 1.65 percent local earned income tax, Pennsylvania’s flat 3.07 percent state income tax, a $52 annual local services tax, a 6 percent sales tax, and a combined 2 percent realty transfer tax when property changes hands.1City of Erie. City of Erie 2026 Budget Federal income tax sits on top of all of it.
Property Tax: Three Bills, Three Deadlines
Property tax is the largest local tax most Erie homeowners face, and you receive three separate bills each year: one from the City of Erie, one from Erie County, and one from the Erie City School District. Each taxing body sets its own millage rate, and you owe the combined total.
The City of Erie’s 2026 millage is 14.12 mills, split between 13.51 mills for general operations and 0.61 mills for debt service.1City of Erie. City of Erie 2026 Budget Erie County and the school district set their rates independently and publish them annually through the county assessment office.2Erie County, PA. Documents and Forms
One mill equals one dollar of tax per $1,000 of assessed value. To calculate your bill, multiply the assessed value of your property by the combined millage rate, then divide by 1,000. A home assessed at $100,000 with a combined rate of roughly 34 mills would owe about $3,400 before discounts or exclusions.
Assessed values are set by the Erie County Assessment Bureau under Pennsylvania’s Consolidated County Assessment Law.3Pennsylvania General Assembly. Pennsylvania Code 8801 – Short Title and Scope of Chapter If you believe yours is too high, you can appeal to the county Board of Assessment Appeals; forms and procedures are on the assessment office website.2Erie County, PA. Documents and Forms Strong appeals usually rely on recent sales of comparable homes nearby or a professional appraisal.
Discount, Face, and Penalty Windows
Each of the three property tax bills has its own schedule, and missing a deadline costs real money.
- City tax: 2 percent discount if paid by the end of March; face amount through May 31; 10 percent penalty after May 31.4City of Erie. City Treasurer
- County tax: 2 percent discount if paid by the end of April; face amount due by June 30.4City of Erie. City Treasurer
- School tax: 2 percent discount if paid by the end of September; face amount by November 30; 10 percent penalty after that.4City of Erie. City Treasurer
If taxes stay unpaid, collection moves to the Erie County Revenue and Tax Claim Bureau, which handles all delinquent property taxes countywide and can ultimately pursue a tax sale.5Erie County, PA. Revenue and Tax Claim Bureau Contact the bureau about payment arrangements the moment you fall behind.
Homestead Exclusion
If your Erie home is your primary residence, you may qualify for a homestead exclusion that reduces the assessed value used to calculate your school district tax. Under Pennsylvania’s Taxpayer Relief Act, each qualifying homestead receives the same flat dollar reduction, funded by state gaming revenue distributed to school districts.6Pennsylvania Department of Community and Economic Development. Property Tax Relief Through Homestead Exclusion
The property has to be a dwelling you own and use as your primary home. Condominiums and cooperatives qualify. Rental properties and second homes do not. File the application with the county assessment office; school districts are required to notify owners by December 31 each year if a property is not approved.6Pennsylvania Department of Community and Economic Development. Property Tax Relief Through Homestead Exclusion The reduction amount changes year to year with available funding, so check the current figure with the school district or the assessment office.
Earned Income Tax: 1.65 Percent
Anyone earning wages or self-employment income while living in the City of Erie pays a combined earned income tax of 1.65 percent on gross earnings.1City of Erie. City of Erie 2026 Budget The rate is authorized under Pennsylvania’s Local Tax Enabling Act7Pennsylvania General Assembly. Local Tax Enabling Act, and 0.65 percent of it is a distressed municipal pension recovery tax levied under Act 205 to support the city’s pension obligations.8eCode360. Erie Code – Article 371 Earned Income Tax
Non-residents who work inside the city also owe earned income tax, though the non-resident rate under Act 511 is generally capped at 1 percent. Employers withhold the tax from each paycheck and remit it to the designated tax officer, so W-2 workers see it come out automatically. If you are self-employed, you pay it yourself at filing time.
Pennsylvania State Income Tax: 3.07 Percent Flat
On top of the local earned income tax, every Erie resident pays Pennsylvania’s personal income tax at a flat 3.07 percent on taxable income.9Commonwealth of Pennsylvania. Tax Rates There are no graduated brackets. Taxable income includes wages, interest, dividends, business profits, rental income, and capital gains.
Pennsylvania does not allow a standard deduction or personal exemptions the way the federal return does, which can surprise people arriving from other states. Combined with the 1.65 percent local rate, Erie residents effectively pay 4.72 percent in state and local income tax on wages before federal tax enters the picture.
Local Services Tax: $52 per Year
Everyone who works within the City of Erie owes a Local Services Tax of $52 per year, whether or not they live in the city.10eCode360. Erie Code – Article 375 Local Services Tax Employers withhold it on a pro-rata basis across the year, so it appears as a small deduction on each paycheck. If you work in more than one Pennsylvania municipality, the total across all of them is still capped at $52.11Pennsylvania Department of Community and Economic Development. Local Services Tax (LST)
Workers who earn less than $12,000 from all sources within the city during the calendar year are exempt. To claim the exemption, file an exemption certificate with both your employer and the city affirming that you expect to earn below the threshold.10eCode360. Erie Code – Article 375 Local Services Tax
Sales Tax: 6 Percent
Sales tax in Erie County is 6 percent, which is Pennsylvania’s statewide base rate.12Pennsylvania Code and Bulletin. Pennsylvania Code 61 Chapter 31 – Imposition Unlike Allegheny County and Philadelphia, Erie County adds no local surcharge on general consumer purchases.
Pennsylvania exempts most groceries and most clothing from sales tax, so everyday food shopping and basic apparel are tax-free.13Pennsylvania Department of Revenue. Pennsylvania Sales and Use Tax Guide Prepared foods, electronics, furniture, and most other retail goods are taxed at the full 6 percent. Short-term lodging in Erie County carries an additional 7 percent hotel room tax on top of sales tax.14Erie County, PA. Hotel Room Tax
Realty Transfer Tax: 2 Percent When Property Sells
When real property changes hands in Erie, the sale triggers a transfer tax based on sale price or fair market value. Pennsylvania imposes a 1 percent state transfer tax on all deed recordings.15Commonwealth of Pennsylvania. Realty Transfer Tax The City of Erie and the Erie City School District share an additional local transfer tax, with the combined local portion capped at 1 percent under the Local Tax Enabling Act.16eCode360. Erie Code – Article 373 Realty Transfer Tax The total is 2 percent of the transaction value.
On a $200,000 home, that comes to $4,000. Buyers and sellers typically negotiate how to split the cost at closing, and a 50/50 split is common in Pennsylvania. The Erie County Recorder of Deeds collects the full amount when the deed is recorded.15Commonwealth of Pennsylvania. Realty Transfer Tax
Common Exemptions
Several categories of transfer are exempt from both the state and local tax:
- Transfers between spouses, including transfers related to divorce.
- Transfers between lineal family members (parents, grandparents, children, grandchildren, and siblings).
- Transfers of property into a revocable living trust the owner controls.
The full list of exempt transactions is in Pennsylvania’s administrative code and covers additional situations beyond these.17Legal Information Institute. 61 Pa Code 91.193 – Excluded Transactions One catch: if a family member receives property tax-free and resells it to an unrelated buyer within a year, the transfer tax applies as though the original owner had made the sale.
Federal Tax and Self-Employment on Top
Federal income tax sits above everything local and state. The 2026 brackets run from 10 percent to 37 percent, and the standard deduction is $16,100 for single filers and $32,200 for married couples filing jointly.18Internal Revenue Service. IRS Releases Tax Inflation Adjustments for Tax Year 2026, Including Amendments From the One, Big, Beautiful Bill
Self-employed Erie residents pay an additional 15.3 percent federal self-employment tax on net earnings (12.4 percent Social Security plus 2.9 percent Medicare), with the Social Security portion applying only to the first $184,500 of 2026 earnings.19Internal Revenue Service. Self-Employment Tax (Social Security and Medicare Taxes)20Social Security Administration. What Is the Current Maximum Amount of Taxable Earnings for Social Security? An additional 0.9 percent Medicare surtax applies on self-employment income above $200,000 for single filers or $250,000 for joint filers. Self-employed Erie residents also owe the 1.65 percent local earned income tax and the 3.07 percent state tax on net profits, which is why quarterly estimated payments are the practical way to stay out of underpayment penalties.