Scranton local tax rates in 2026 come in three layers: a combined 3.4% earned income tax on wages and self-employment net profits, a flat $156 annual Local Services Tax on anyone who works inside city limits, and real estate taxes levied by the City of Scranton (6.350950 mills), the Scranton School District (9.5585 mills), and Lackawanna County.1Scranton Single Tax Office. Real Estate Tax – City of Scranton2Scranton Single Tax Office. Real Estate Tax – Scranton School District Businesses that employ people in the city owe a separate Payroll Preparation Tax at 0.2787% of payroll.
Earned Income Tax: 3.4% for Residents
If you live in Scranton, your combined earned income tax rate is 3.4%, made up of a 2.4% city levy and a 1.0% Scranton School District levy. It applies to wages, salaries, commissions, and net profits from self-employment, and it is calculated on gross earnings before most deductions. Passive income like interest, dividends, and capital gains is not covered.
Non-residents who work in Scranton pay 1.0%. Under Pennsylvania’s Act 32 framework, employers withhold EIT every pay period and remit it to the assigned collector. If you live in one municipality and work in another that levies its own EIT, your home municipality gives you credit for what your workplace withheld, so you effectively pay the higher of the two rates but never both in full.
The annual EIT return is due April 15. You will need W-2s from every employer and 1099s covering any self-employment profits, and the return must report earned income from all sources so the correct resident rate is applied.
Local Services Tax: $156 Flat
Every person who works within Scranton owes $156 a year in Local Services Tax, no matter what they earn.3City of Scranton, PA. Article IV Local Services Tax Employers withhold it pro rata across pay periods, which works out to roughly $3 per weekly paycheck. The revenue funds services like police and fire protection.
There is one exemption worth knowing. If your total earned income and net profits from all Scranton sources will be under $12,000 for the calendar year, you can file an exemption certificate with your employer and the local tax collector and skip the withholding entirely.4Pennsylvania General Assembly. Local Tax Enabling Act – Section 301.1 The certificate has to be filed every year. Without it, your employer will withhold the tax regardless of whether you would have qualified.
Property Tax Millage Rates for 2026
Scranton property owners get three separate real estate tax bills each year. A mill equals one dollar of tax per $1,000 of assessed value, so multiplying each millage rate by your assessed value divided by 1,000 and adding the three together gives you the annual property tax.
- City of Scranton: 6.350950 mills
- Scranton School District: 9.5585 mills
- Lackawanna County: verify the current rate through the Lackawanna County Assessment Office
These rates were updated significantly for 2026 following assessment changes, so older figures will produce a wrong number. Your assessed value comes from Lackawanna County, not the price you paid or the current market value.
Discounts and Penalties
Pay your city and school district real estate taxes by April 15 and you get a 2% discount on the real estate tax portion. Between then and June 30 you owe face value. On July 1, a 10% penalty is added to any unpaid real estate tax balance, and the Scranton refuse fee picks up a 12% penalty on the same date.5Scranton Single Tax Office. Scranton Single Tax Office Lackawanna County real estate taxes carry the same 10% penalty starting July 1.
Appealing Your Assessment
Because all three taxing bodies apply the same assessed value, one successful appeal reduces all three bills. If you believe your property is over-assessed, you can appeal through Lackawanna County’s Board of Assessment Appeals. The county Assessment Office maintains the valuations and applies a common level ratio when adjustments are warranted.
Relief Programs for Older Adults and Lower-Income Owners
Pennsylvania’s Property Tax/Rent Rebate Program is open to homeowners and renters who are 65 or older, widows or widowers aged 50 or older, or people with disabilities aged 18 or older, with total household income of $48,110 or less.6Department of Revenue. Property Tax/Rent Rebate Program
Scranton adds two layers on top. Homeowners with income of $32,070 or less whose property taxes exceed 15% of their income may qualify for a supplemental rebate of $190 to $500. And residents of Scranton, Philadelphia, and Pittsburgh are eligible for additional supplemental rebates not offered elsewhere in the state.6Department of Revenue. Property Tax/Rent Rebate Program For the 2025 tax year, the application deadline is June 30, 2026.
Payroll Preparation Tax for Employers
This one does not come out of employee paychecks, but any business with workers in Scranton should know about it. The city levies a Payroll Preparation Tax at 0.2787% on total payroll expense for work performed within city limits.7City of Scranton. Payroll Prep Tax Information Hiring even one person who works in Scranton, keeping a fixed place of business there, or owning property in the city for business purposes generally triggers the obligation.
The tax is paid quarterly, with three payments during the tax year and the fourth in early the following year. Berkheimer Tax Innovations administers the tax on behalf of the city, and returns are filed through Berkheimer. Scranton stopped assessing the Business Privilege and Mercantile Tax in 2023, so the Payroll Preparation Tax is now the main business-level local tax.8Scranton Single Tax Office. Business Privilege and Mercantile Tax
Getting Some of It Back Through Federal SALT
Local EIT and real estate taxes are deductible on federal Schedule A if you itemize.9Internal Revenue Service. Instructions for Schedule A (Form 1040) For 2025, the state and local tax deduction cap was raised to $40,000 ($20,000 if married filing separately), up from $10,000. The deduction phases out for taxpayers with modified adjusted gross income above $500,000 ($250,000 if married filing separately).10Internal Revenue Service. How to Update Withholding to Account for Tax Law Changes for 2025
Between a 3.4% EIT and three real estate tax bills, many Scranton homeowners will hit deductible amounts that make itemizing worthwhile under the higher cap. You can deduct state and local income taxes or state and local sales taxes, but not both, and for most Scranton residents the income tax choice produces the larger deduction.
Where to File Each Tax
Different taxes go to different collectors, and mixing them up is where residents most often go wrong. The Scranton Single Tax Office at 315 Franklin Avenue handles real estate taxes for the city and school district and administers the Local Services Tax. The Payroll Preparation Tax goes through Berkheimer Tax Innovations. EIT filings are routed through the designated Act 32 collector for your municipality, and the individual return is due April 15.
The Payroll Preparation Tax runs on its own quarterly schedule with deadlines in May, August, November, and the following February.7City of Scranton. Payroll Prep Tax Information Keep copies of your filed local returns and supporting documents in case a collector follows up on a prior year.