Erie Paycheck Calculator — PA Take-Home Pay (1.65% EIT)

Erie Payroll Tax Facts — 2026

⚠️ Rate verified against the USDA National Finance Center's official Pennsylvania local tax withholding bulletin, the reference table used to withhold local taxes for federal employees. Confirm your exact PSD code and rate through the PA DCED Act 32 register before filing or setting up payroll.

Why Erie's Economy — and Tax Base — Looks Different

Nicknamed the "Gem City" and "Flagship City," Erie sits on Presque Isle Bay as Pennsylvania's only access point to the Great Lakes and, through the St. Lawrence Seaway, the Atlantic Ocean. That geography shapes a genuinely different local economy than the coal-region and steel-town cities elsewhere on this list — manufacturing (notably locomotive production), insurance, healthcare, and a large tourism sector built around Presque Isle State Park's beaches, which draw millions of visitors each year.

That more diversified economic base is part of why Erie's 1.65% EIT sits closer to the standard Act 32 range than the elevated rates seen in cities like Scranton or Reading. Compare it against Bethlehem, another former industrial city that also kept a moderate rate, or browse every municipality on the PA Cities hub.

Erie Paycheck Calculator — FAQ

• What is Erie's earned income tax rate? +
  Erie charges a 1.65% earned income tax in 2026, verified against the USDA National Finance Center's official Pennsylvania local tax withholding bulletin — the same reference table used to withhold taxes for federal employees.
• Does the rate differ for residents versus nonresidents in Erie? +
  No. Erie charges the same 1.65% rate to both residents and nonresidents who work in the city, similar to Bethlehem's structure and unlike Scranton's or Reading's split resident/nonresident rates.
• Why is Erie sometimes called Pennsylvania's only Great Lakes city? +
  Erie sits on Presque Isle Bay on Lake Erie and is Pennsylvania's only port with access to the Great Lakes and, via the St. Lawrence Seaway, the Atlantic Ocean. This unique geography has shaped its economy around shipping, manufacturing, and lakefront tourism at Presque Isle State Park.
• Is Erie's local tax higher or lower than most Pennsylvania cities? +
  Erie's 1.65% rate is moderate — higher than the baseline 1% many municipalities charge, but well below elevated rates in cities like Scranton (3.40%) or Reading (3.60%) that required emergency taxing authority during periods of fiscal distress.
• Does this calculator automatically apply Erie's rate? +
  Yes. The Municipality preset on the State & Local tab defaults to Erie's 1.65% rate, which applies whether you're a resident or nonresident commuter.