Milton Area School District is funded by a combination of: a local earned income tax 1.3%, a property taxes, a real estate transfer tax - 0.5%, per capita taxes of $5 (Section 679) and $10 (Act 511). substantial funding from the Commonwealth of Pennsylvania and the federal government. Grants can provide an opportunity to supplement school funding without raising local taxes. Interest earnings on accounts also provide nontax income to the district. In the Commonwealth of Pennsylvania, pension income and Social Security income are exempted from both state personal income tax and local earned income tax, regardless of the individual's level of wealth. The average Pennsylvania public school teacher's pension in 2011 exceeds $60,000 a year plus they receive federal Social Security benefits: both are free of Pennsylvania state income tax and local income tax which funds local public schools.