Payroll Preparation Tax Calculator

The City of Scranton and Scranton School District have taken steps to eliminate the Business Privilege and Mercantile (BPM) taxes for 2022, in favor of a Payroll Preparation Tax (PPT).

While only select businesses are subject to the BPM taxes, the PPT will be applied more broadly to entities doing business in the City of Scranton.

By law, this transition must be revenue neutral – which means neither taxing body can generate more total revenue than what is collected under the BPM from the previous year. For some businesses this will result in a decrease in tax liability, while others will see an increase.

If fully approved, beginning in January 2022, the PPT will be imposed on a percentage of a business’s total payroll—at a rate of 0.002786775 by the City and 0.008064 by the School District. Likewise, all BPM liabilities will be eliminated.

Learn more about the details of this proposed action here.

To estimate your anticipated PPT liability, use the calculator below.*

*Please note, calculator is for estimation purposes only.