Calculate your take-home pay in Reading, Pennsylvania including the 3.6% local income tax on top of Pennsylvania's 3.07% state rate.
| Salary | City Tax | Take-Home (with city tax) | Take-Home (without) | City Tax Cost/Month |
|---|---|---|---|---|
| $50,000 | $1,800 | $39,020 | $40,820 | $150 |
| $75,000 | $2,700 | $56,535 | $59,235 | $225 |
| $100,000 | $3,600 | $72,455 | $76,055 | $300 |
| $125,000 | $4,500 | $88,326 | $92,826 | $375 |
| $150,000 | $5,400 | $103,746 | $109,146 | $450 |
| $200,000 | $7,200 | $135,547 | $142,747 | $600 |
Reading levies a 3.6% local income tax on both residents and non-residents earning income in the city. This is in addition to Pennsylvania's 3.07% state income tax, bringing the combined state and local rate to 6.67%.
One of the highest local tax rates in Pennsylvania.
The local tax applies to earned income including wages, salaries, and in most cases net self-employment income. Investment income, pensions, and Social Security are typically exempt from local income taxes.
The 3.6% local tax is applied on top of Pennsylvania's 3.07% state income tax and federal income tax. On a $100,000 salary, Reading's local tax costs approximately $3,600/year — that's $300/month or $138 per biweekly paycheck.
This tax applies to both residents and non-residents earning income in Reading. Even if you commute from outside the city, you owe the local tax on wages earned within Reading.
Reading charges a 3.6% local income tax. On a $100,000 salary, this costs approximately $3,600/year. This tax applies to both residents and non-residents earning income in the city.
Partially. Reading taxes non-residents on income earned within the city at 3.6%. You'd need to both live and work outside the city to avoid it entirely.
Including Pennsylvania's 3.07% state rate, Reading's 3.6% local rate, and federal taxes, a $100K earner pays an effective rate of approximately 27.5%.
Yes, local income taxes are deductible as part of your state and local tax (SALT) deduction if you itemize. However, the SALT deduction is capped at $10,000 ($5,000 for married filing separately), which limits the benefit for many taxpayers.