Shamokin Area School District is funded by a combination of: a local Earned Income tax - 1%, a property tax, a real estate transfer tax 0.5%, per capita taxes $5, Occupation Privilege tax $10, and a Public Utility Realty Tax, coupled with substantial funding from the Commonwealth of Pennsylvania and the federal government. Grants can provide an opportunity to supplement school funding without raising local taxes. In the Commonwealth of Pennsylvania, pension income and Social Security income are exempted from state personal income tax and local earned income tax, regardless of the income level. In 2011, the average Pennsylvania public school teacher pension exceeded $60,000 a year plus they receive federal Social Security benefits: both of which are exempted from both Pennsylvania state income tax and the local school income tax which funds local public schools. Effective 2016, active duty military are also exempted from paying the local earned income tax in Pennsylvania.