PA Local Earned Income Tax (EIT): The Complete Guide

Last updated May 18, 2026

·Independent Pennsylvania tax education

Pennsylvania's local earned income tax (EIT) is unique. Rates vary block by block across the state and are collected by regional tax bureaus, not the state. This guide covers how the system works and how to file your local return.

Key takeaways

PA's local earned income tax (EIT) is set jointly by municipalities and school districts.
Combined rates typically range from about 1% to over 3.5% depending on where you live.
Most PA workers have local EIT withheld by their employer, but you usually still need to file a local return.
Local EIT is collected by regional tax bureaus, not the state. Different parts of PA use different collectors.

What the PA local earned income tax is

On top of state income tax, most Pennsylvania workers pay a local earned income tax, commonly called local EIT or simply EIT. It is a percentage of your earned income, set jointly by your municipality and your school district. It is separate from the PA-40 and is collected by a regional tax bureau, not the Pennsylvania Department of Revenue.

Local EIT applies to wages, salaries, commissions, tips, and net profits from self-employment. It generally does not apply to interest, dividends, Social Security, or pension income.

How rates are set

Every Pennsylvania municipality and school district can adopt its own EIT rate. The two rates are added together for residents, so the combined EIT rate often looks like 1.0% + 0.5% = 1.5%, with the municipality and school district sharing the revenue.

Philadelphia uses a separate city Wage Tax instead of a standard EIT. See our Philadelphia tax guide for details.

Who actually collects PA EIT

Pennsylvania's Act 32 grouped municipalities into tax collection districts and appointed a single tax collector for each. The major collectors include:

Berkheimer (HAB).
Keystone Collections Group.
Capital Tax Collection Bureau.
Berks Earned Income Tax Bureau.
Lancaster County Tax Collection Bureau (LCTCB).
Jordan Tax Service.
York Adams Tax Bureau.

You file your local EIT return with whichever collector serves your home municipality, not with the state. Many cities use a different collector than the surrounding municipalities, so always confirm.

Income that counts (and doesn't)

Generally taxable for PA local EIT:

W-2 wages, salaries, tips, and commissions.
Self-employment net profits.
Compensation from PA-source work, even for non-residents who worked in PA.

Generally not taxable:

Interest and dividends.
Social Security benefits.
Pension and retirement income.
Capital gains.

How to look up your rate

The official PA Municipal Statistics tool lets you look up your exact EIT rate based on your home address.

Go to PA Municipal Statistics — Find Local Tax.
Enter your street, city, and ZIP.
Note the resident EIT rate, the non-resident rate, and the local services tax (LST).
Confirm the collector listed for your municipality.

Filing your local return

Most PA workers file a local EIT return each year, even when employers withhold the right amount. Your collector's website is the best starting point. Most accept online filing.

The local return reconciles what was withheld against what you actually owed for the year. It also captures any non-employer income (such as self-employment) that needs to be reported.

Non-residents and remote workers

Pennsylvania uses a "where you work" and "where you live" framework for local EIT. If you live in PA and work in PA, you owe your home municipality's resident EIT rate, and the collector reconciles between the work-location collector and your home collector. If you live in PA but work fully remote outside the state, the situation can be more complicated and is worth running by a Pennsylvania-licensed professional.

Best practices

Look up your exact EIT rate on PA Municipal Statistics before assuming what your employer should withhold.
Keep copies of W-2s showing local PA tax withheld, plus any prior local returns, for at least three years.
Confirm which regional tax collector serves your address (Berkheimer, Keystone Collections, Capital Tax, Berks EIT, LCTCB, Jordan Tax Service, etc.).
File a local return every year even if your employer withheld correctly.
Update your local Residency Certification Form (PA Act 32) whenever you move within PA.

Common mistakes

Assuming the state PA-40 covers your local EIT obligation. It does not.
Filing local EIT with the wrong collector for your municipality.
Forgetting to claim out-of-state tax credit when working outside PA.
Ignoring local EIT entirely as a freelancer who receives 1099 income.
Letting an employer use a default Pennsylvania EIT rate (often 1%) instead of your real one.

Official Pennsylvania sources

PA Municipal Statistics — local earned income tax rates
Look up the local earned income tax (EIT) rate for any PA address.
Pennsylvania Department of Revenue
Statewide tax administration, forms, and bulletins.
PA Personal Income Tax
PA personal income tax rules, forms, and instructions.

Frequently asked questions

Is the PA local earned income tax the same as state income tax?

No. Local EIT is a separate tax on earned income set by municipalities and school districts. It is collected by a regional tax bureau, not the PA Department of Revenue.

Do I have to file a local return if my employer already withheld?

Usually yes. Withholding does not replace the annual local return. Most filers still have to file with their local tax collector to reconcile.

What if I live in PA but work in another state?

Generally, your home municipality's EIT rate applies, and you may get credit for taxes paid to the other state or city, subject to limits. Confirm with your local collector.

What if I live in another state but work in PA?

Non-residents who work in PA often have local EIT withheld at a non-resident rate. Some non-resident situations require a local return. Check with the collector for the PA municipality where you worked.

How do I find my exact PA EIT rate?

Use the official PA Municipal Statistics lookup tool. It returns the rate for any PA address based on the municipality and school district.

Next read

Pennsylvania Tax Deadlines

Local EIT has the same April filing deadline as your federal return. Make sure you have the full PA tax calendar.

SEO Quality Rating

How we currently rate this article. Updated as the content evolves.

Target keyword: PA local earned income tax
Search intent: The user wants to understand the Pennsylvania local earned income tax and how to file it.

Content depth8/10

Internal linking9/10

Local relevance10/10

E-E-A-T7/10

Overall SEO readiness9/10

Explanation

Strong PA-specific content with links to the official EIT rate lookup and the major regional tax collectors. EIT is uniquely Pennsylvania, so local relevance is very high.

Suggested improvements

Add a downloadable EIT rate worksheet.
Add an expert review byline from a PA-licensed CPA.
Add visual flowchart of how EIT is shared between municipality and school district.

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