Pennsylvania Local Earned Income Tax Calculator

The Pennsylvania local Earned Income Tax (EIT) is a tax on wages, salaries, net profits and other earned income levied by Pennsylvania municipalities and school districts under the Local Tax Enabling Act (Act 32 of 2008). Every municipality and school district in Pennsylvania is authorised to levy an EIT. The combined rate (municipality rate plus school district rate) applies to earned income earned or received by residents of that municipality. Act 32 generally caps the combined rate at 2%, though some cities such as Pittsburgh, Reading, Scranton and Allentown operate under prior enabling legislation permitting higher rates. Philadelphia is entirely separate: it levies a Wage Tax, not an EIT, under its own city charter.

Your EIT rate depends on your Political Subdivision (PSD) code, which identifies the combination of municipality and school district where you live. The Pennsylvania Department of Community and Economic Development (DCED) maintains the official PSD lookup tool at munstats.pa.gov/Public/FindAMunicipality.aspx. Enter your municipality name or zip code to find your PSD code and the current combined EIT rate. Your employer's payroll department or local tax collector can also confirm your rate.

No. Philadelphia levies its own Wage Tax under separate authority (the Philadelphia Home Rule Charter) and is not subject to Act 32. The Philadelphia Wage Tax applies to all wages earned by Philadelphia residents regardless of where they work, and to wages earned in Philadelphia by non-residents. The resident rate is 3.75% and the non-resident rate is 3.44% (as of July 2024). These rates are higher than the Act 32 cap and are administered by the City of Philadelphia Department of Revenue rather than a county tax collector.

Act 32 established a single-collector system for each county or multi-county area. Instead of paying multiple local tax offices, you pay through one county-level tax collector (for example, Keystone Collections Group in Allegheny and Butler counties, Berkheimer Tax Innovations in Berks and Bucks counties, or the Lancaster County Tax Collection Bureau in Lancaster County). Your employer withholds the EIT from your wages and remits it to the designated collector. Self-employed individuals and those with other earned income file directly with their local collector.

Pennsylvania EIT applies to earned income: wages, salaries, tips, commissions, bonuses, and net profits from self-employment. It does not apply to passive income such as interest, dividends, capital gains, pensions, or Social Security. This is narrower than Pennsylvania state income tax, which applies to eight classes of income including investment income.

Act 32 provides that a resident who pays EIT to a non-resident municipality (the place of employment) can claim a credit against their resident EIT. The credit is equal to the lesser of the non-resident rate or the resident rate, preventing double taxation. For example, if you live in a municipality with a 1.5% EIT but work in a city that withholds 2%, you pay 2% to the work location and receive a 1.5% credit against your resident liability, meaning you owe no additional tax to your home municipality.

Pennsylvania state income tax (3.07% flat rate) and local EIT are entirely separate taxes. You pay both: 3.07% to the state and your local combined rate to your municipality and school district. There is no state credit for EIT paid, and no EIT credit for state tax paid. The combined state-plus-local rate in this calculator sums both liabilities for a single total estimate. Federal income tax is additional and computed separately.

PSD stands for Political Subdivision. A PSD code is a six-digit code assigned by the Pennsylvania State Tax Equalization Board (STEB) to identify each municipality and school district combination in Pennsylvania. Your PSD code determines which EIT rate applies to you and which tax collector receives your payment. PSD codes are available through the DCED municipal statistics portal at munstats.pa.gov.