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Taxes (local income) Q: Do local municipalities levy an earned income (“wage”) tax?

April 26, 2017earned income levy local municipalities tax taxes Wage

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Taxes (local income) Q: Do local municipalities levy an earned income (“wage”) tax?

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Yes. The amount an individual pays in local wage taxes is determined by his/her place of residence. This tax is imposed upon salaries, wages, commissions, and other compensation earned by individuals and upon net profits earned from all business and other activities relating to earned income. Wage taxes are limited to 1% of total compensation (0.5% to the municipality and 0.5% to the school district) in all Lackawanna County communities except the City of Scranton and the City of Carbondale. Scrantonians pay a 3.4% wage tax (2.4% to the city and 1% to the school district) and residents of Carbondale pay 1.75%.