Lackawanna County's first reassessment since 1968 took effect on January 1, 2026. Every parcel got a current value. Every taxing body cut its millage to collect the same total revenue. The county's own rate fell from 89.98 mills to 5.79.
Going in, the county's rule of thumb was that a third of bills would go up, a third would go down and a third would stay about the same. Which third a given house lands in depends on how far its new value moved against everyone else's.
That makes the seller's old tax bill useless to you. It was computed on a 1968 value at a 2025 rate. Neither number exists anymore.
Dominick Prevete arranges DSCR loans on Pennsylvania rentals, Scranton included. Here's what the reset did to the tax line, a two-family traced at the new rates, and the three Pennsylvania closing rules a New Jersey buyer doesn't have at home.
What the reassessment changed, in numbers
A property inside the City of Scranton pays three taxing bodies. These are the 2026 rates, in mills (dollars per $1,000 of assessed value):
| Taxing body |
2026 mills |
| Lackawanna County (5.51 general, 0.08 educational, 0.20 library) |
5.79 |
| City of Scranton |
6.350950 |
| Scranton School District |
9.5585 |
| Total |
21.69945 |
In 2026, a property inside the City of Scranton pays about 21.70 mills on its new assessed value: 5.79 county, 6.35 city and 9.56 school, per the Scranton Single Tax Office. That is about 2.17% of the parcel's certified 2026 assessment.
The cut was large because the values went up so far. Local news coverage of the Scranton School District's 2026 budget gave an illustration: a parcel assessed at $9,000 under the 1968 values and $140,000 after paid about the same school tax both years, roughly $1,331 at the old rate and $1,338 at the new one. The rate fell by about 94%. The value rose by more than 15 times. The bill barely moved.
For a New Jersey comparison, Newton's 2025 general tax rate was 2.662% (Town of Newton Tax Collector). Both are rates on assessed value, not on what you pay for the house.
The underwriting rule
Pull the parcel's certified 2026 assessment from the Lackawanna County assessment database. Multiply it by the 2026 millage. That's your tax line.
Don't use a prior-year bill. It was the old value times the old rate, and on the county's own expectation two bills in three moved. Don't use the tax figure on the listing sheet either. It may be last year's bill.
Values can still move. The county's window to appeal for the 2027 tax year closed August 1, 2026, and it reopens April 1, 2027. A parcel with an appeal pending can carry a different value next year. Ask the seller whether one was filed.
A deal traced end to end
Every property input below is illustrative. Look up the real parcel before you underwrite anything. The millage is the verified 2026 figure.
Inputs: a two-family inside the City of Scranton, $220,000 purchase price, a certified 2026 assessment of $200,000, rents of $1,300 a unit ($2,600 a month), 75% LTV, a 30-year fixed at an illustrative 7.50%, and $1,800 a year of insurance. The 7.50% is an illustration, not a price. Current pricing is on the DSCR rates page.
| Line |
Figure |
How it's derived |
| Loan |
$165,000 |
$220,000 × 75%; $55,000 down |
| Annual property tax |
$4,339.89 |
$200,000 × 21.69945 ÷ 1,000 |
| Monthly property tax |
$361.66 |
$4,339.89 ÷ 12 |
| Principal and interest |
$1,153.70 |
$165,000 at an illustrative 7.50%, 30 years |
| Insurance (illustrative) |
$150.00 |
$1,800 ÷ 12 |
| PITIA |
$1,665.36 |
$1,153.70 + $361.66 + $150.00 |
| Rent |
$2,600.00 |
$1,300 × 2 (illustrative) |
| DSCR |
1.56 |
$2,600 ÷ $1,665.36 |
The ratio is gross rent divided by PITIA, with no vacancy or management deduction, the same convention as the DSCR ratio post.
At an illustrative 7.50%, this two-family covers its payment 1.56 times on the 2026 tax bill.
Now stress the tax line. Suppose the parcel's certified assessment is $250,000 instead of $200,000. The tax rises to $452.07 a month, PITIA to $1,755.77, and the DSCR to 1.48. Still plenty of room.
To pull this file down to 1.25, the assessment would have to reach about $429,000, nearly double the purchase price. Tax is not what limits this deal.
What a New Jersey buyer pays at closing that they don't pay at home
Transfer tax. In New Jersey the realty transfer fee is the seller's. Pennsylvania's realty transfer tax is customarily split between buyer and seller, so the buyer brings half of it to closing.
Where the property sits matters. Inside the City of Scranton the combined rate is 3.7%, per Lackawanna County's transfer tax guidance. In most other Lackawanna County municipalities it is 2%, per the county's rate sheet. Check the rate for the specific municipality.
On the $220,000 example:
| Location |
Total rate |
Total tax |
Buyer's half |
| City of Scranton |
3.7% |
$8,140 |
$4,070 |
| Most other Lackawanna municipalities |
2% |
$4,400 |
$2,200 |
That's $1,870 more cash to close for the same price inside city limits. It doesn't touch the DSCR, but it's cash you need on closing day.
Act 29 of 2026. Pennsylvania's Act 29 took effect September 18, 2026. If you buy a property that won't be your principal residence, you file owner contact information with the county chief assessor within 30 days of the purchase. An LLC buyer files too, and a business has to name an individual with the authority to fix a code violation. A county can fine up to $500 for knowingly giving false or incorrect information. Lackawanna's assessment office has posted the Act 29 requirement on its page; file with that office.
Put it on your closing checklist next to the entity documents in the DSCR document checklist. And closing in an LLC doesn't remove the personal guarantee; the LLC and personal guarantee post covers that.
Scranton's rental license
Every rental unit in the City of Scranton needs a city rental license under Chapter 373 of the city code. The fee is $45 per unit for properties with 1 to 3 units, so $90 a year on this two-family. The program includes health and safety inspections, and a new rental unit has to be licensed within 30 days of the tenancy starting.
The license fee sits outside PITIA, so it doesn't touch the DSCR. It belongs in your cash flow, and the inspection belongs in your rehab budget before the first tenant moves in.
Where the numbers work and where they don't
Coverage is not the constraint on this example. At 1.56 it clears 1.25 with a lot of room, and a 25% higher assessment still leaves it at 1.48.
The constraints are elsewhere:
- The housing stock is old. A Scranton two-family is often a century-old building. Roof, heating, wiring and plumbing are where the money goes, and none of it shows up in PITIA.
- City limits cost you at closing. The transfer-tax premium inside the city is real cash, $1,870 on a $220,000 purchase.
- The inspection regime is real. A unit that fails inspection is a unit you can't license, and an unlicensed unit is a violation.
- Assessments can still move. The 2026 roll is new and appeals are ongoing. Underwrite the certified number and know whether the parcel has an appeal pending.
The rent in this example is illustrative too. Underwrite rent from the appraiser's rent schedule for the specific address, not from a citywide average. The lease vs. market rent post covers what happens when the lease and the appraisal disagree.
For how a market with tighter coverage plays out, the Huntsville post traces one where coverage is thin and the buy price decides the deal. For the state-level picture, see the Pennsylvania DSCR loan page, and run your own numbers in the calculators.
FAQ
What is the 2026 property tax rate in Scranton, PA?
About 21.70 mills on the parcel's certified 2026 assessment: 5.79 county, 6.35 city and 9.56 school, per the Scranton Single Tax Office. That is about 2.17% of assessed value.
Who pays the realty transfer tax in Scranton?
By custom, the buyer and the seller split it. The total is 3.7% inside the City of Scranton and 2% in most other Lackawanna County municipalities. On a $220,000 purchase, the buyer's half is $4,070 in the city and $2,200 outside it.
Does Pennsylvania Act 29 apply to an LLC buying a rental?
Yes. Act 29 of 2026 took effect September 18, 2026. The owner of a property that is not the owner's principal residence, an LLC included, files contact information with the county chief assessor within 30 days of the purchase. A business owner names an individual with the authority to fix a code violation.
Do Scranton rentals need a license?
Yes. Every rental unit in the City of Scranton needs a city rental license. The fee is $45 per unit for properties with 1 to 3 units, the program includes health and safety inspections, and a new rental unit must be licensed within 30 days of the tenancy starting.
Can I use the seller's tax bill to underwrite a Scranton DSCR loan?
No. Use the parcel's certified 2026 assessment times the 2026 millage. A bill from 2025 or earlier was computed on 1968 values at a different rate, and a listing sheet's tax figure may be either.
Send the Scranton deal
Dominick Prevete prices a Scranton file on the parcel's certified 2026 assessment at the 2026 millage, so the tax line is the real one. Send me the address, the purchase price, the rent or the lease, and whether the property sits inside Scranton city limits.
Dominick Prevete — 31 years in real estate finance. Founder, National Loan Provider. 25 Main Street, Unit B, Sparta NJ.
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