$100k in Allentown
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2026 IRS Brackets • FICA Limits • State & Local Rules
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📊 Allentown Salary Guide
The Allentown Salary Guide: What a $100k Paycheck Actually Buys
You don’t need a spreadsheet to know that a six-figure salary doesn't stretch as far as it used to. But in Allentown, Pennsylvania, the math is surprisingly in your favor—provided you understand the deduction line.
This guide breaks down the real purchasing power of a $100,000 annual salary in the Lehigh Valley, stripping away the sticker shock to reveal the net reality.
The Verification Test ($100,000 Analysis)
The "Sticker Price" of a $100,000 salary is an illusion. It is a gross number that vanishes the moment it hits the payroll system. Here is the forensic accounting of that paycheck.
- Gross Income: $100,000
- Federal Tax: - $13,614
- FICA Tax: - $7,650
- State Tax (PA): - $3,070
- Local Tax: - $0
- Total Deductions: $24,334
The Bottom Line: Your actual take-home pay is $75,666.
This represents a 24.3% tax burden. For every $4.00 you earn, roughly $1.00 vanishes to taxes. While Pennsylvania does levy a flat state income tax, the absence of a local "wage tax" (common in neighboring cities like Philadelphia or Bethlehem) is a critical financial advantage for Allentown residents.
Smart Budget Breakdown (50/30/20 Rule)
With a net annual income of $75,666, your monthly liquidity is $6,306. Using the strict 50/30/20 budgeting model, here is how that capital should be deployed in the Allentown market.
Needs: $3,153/month
The Non-Negotiables.
In Allentown, $3,153 covers a comfortable lifestyle.
- Housing: The median rent for a one-bedroom apartment in Allentown hovers around $1,200–$1,400. This budget leaves you with roughly $1,700+ remaining for utilities, insurance, and groceries.
- Purchasing Power: You are not rent-burdened. Unlike major metros where rent consumes 50% of income, here you can cover a decent apartment and still have cash left for a car payment and insurance.
Wants: $1,892/month
The Discretionary Spend.
This is your "Lifestyle Fund." In Allentown, $1,892 goes a long way. This covers dining out at the Hamilton District, attending IronPigs games, and weekend trips to the Poconos or Philadelphia. You have significant purchasing power for entertainment without dipping into savings.
Savings: $1,261/month
The Wealth Engine.
This is the most important number on the page.
Saving $1,261 monthly puts you in the top tier of American savers. Over one year, that is $15,132.
- Compound Interest: If you invest this in a standard S&P 500 index fund (historically ~8% return), you are building a serious retirement nest egg.
- Emergency Fund: You can fully fund a 6-month emergency fund ($18,918) in just 18 months while living comfortably.
Allentown Taxes vs The Competition
How does the "Allentown Advantage" stack up against high-profile metros? Let’s look at the net pay on a $100,000 salary.
| Metric | Allentown, PA | Austin, TX | New York City, NY |
|---|---|---|---|
| Gross Salary | $100,000 | $100,000 | $100,000 |
| State Income Tax | 3.07% ($3,070) | 0% ($0) | ~4.0% ($4,000)* |
| Local Tax | 0% ($0) | 0% ($0) | ~3.9% ($3,876)* |
| Est. Net Pay | $75,666 | ~$78,000 | ~$62,000 |
*NYC estimates vary by bracket; includes NY State + NYC Resident Tax.
The Verdict: Texas (0% tax) wins the net paycheck battle. However, Allentown blows NYC out of the water, leaving you with roughly $13,600 more per year in your pocket compared to the Big Apple. Allentown offers a "Goldilocks" zone: lower taxes than the Northeast average, with significantly lower housing costs than Austin.
Frequently Asked Questions (FAQ)
Q: What is the income tax rate in Allentown?
A: Pennsylvania has a flat state income tax rate of 3.07%. Allentown residents generally do not pay a separate local earned income tax, though specific occupational privilege taxes may apply depending on your employer's location.
Q: Is $100,000 a good salary in Allentown?
A: Yes. It is significantly above the local median household income. After taxes and the 50/30/20 budget allocation, it provides a stress-free financial life with substantial savings potential.
Q: Does Allentown have a local city tax?
A: No. Unlike Philadelphia or Pittsburgh, Allentown does not currently levy a local wage tax on residents. This is a major financial benefit compared to other Pennsylvania cities.
Methodology & Sources:
Calculations based on IRS 2026 Tax Brackets (Single Filer, Standard Deduction applied). FICA tax calculated at standard 6.2% Social Security + 1.45% Medicare. State tax reflects Pennsylvania's flat 3.07% rate. Data derived from Bureau of Labor Statistics (BLS) Consumer Expenditure Surveys and State Comptroller revenue reports.