PA Local EIT 2026 Calculator (Act 32 + LST)
Pennsylvania local Earned Income Tax (EIT) is collected by every municipality and school district outside Philadelphia. Under Act 32 of 2008, employers withhold the higher of the resident or worker tax rate. Typical combined rate: 1.0%-3.7% of gross wages, plus a $52/year Local Services Tax (LST) cap.
| Resident combined rate (muni + SD) | — |
| Non-resident work rate | — |
| Higher-of (Act 32 rule) | — |
| EIT base (gross wages) | — |
| Allocation | |
| To resident municipality | — |
| To resident school district | — |
| To work municipality (if higher) | — |
| Local Services Tax (LST) | — |
| Annual EIT | — |
| Effective rate of gross | — |
Pennsylvania local Earned Income Tax (EIT) is collected by every municipality and school district outside Philadelphia. Under Act 32 of 2008, employers must withhold the higher of the resident or worker tax rate and remit through a single Tax Collection District (TCD). Typical 2026 combined rate: 1.0%-3.7% of gross wages, plus a $52/year Local Services Tax (LST) cap.
How Act 32 Withholding Works
Pennsylvania Act 32 of 2008 consolidated 560+ local tax collectors into 69 Tax Collection Districts. Employers must compare the resident total rate (municipality + school district where the employee lives) against the non-resident rate at the work location and withhold whichever is higher. The Residency Certification Form (DCED CLGS-32-6) signed by every PA employee determines the residence rate. Tax goes to the employee's home jurisdiction first, with any excess (when work rate is higher) remitted to the work municipality.
Local Services Tax (LST) $52 Cap
LST is a separate per-employee tax (not a percentage of wages) levied by the work municipality. The statewide cap is $52/year per worker, withheld pro-rata each pay period (usually $1/week or $2/biweekly). Any worker earning under $12,000/year is exempt and can file an LST Exemption Certificate. If LST exceeds $10, the school district keeps $5 and the municipality keeps the rest. Some municipalities (Pittsburgh, for example) charge the full $52, others charge $10 or zero.
School District vs Municipal Split
The resident EIT rate is the sum of two layers: the municipal rate (typical 0.5%-1.5%) and the school district rate (typical 0.5%-1.5%). Combined averages 1.0%-2.5% for most boroughs and townships. Money is divided at the TCD level using the DCED-published rates and remitted separately to municipality and school district. Pittsburgh and other home-rule cities sometimes use different allocation formulas.
Philadelphia Wage Tax Exception
Philadelphia operates outside Act 32 and charges its own Wage Tax: 3.75% for residents and 3.44% for non-residents (effective rates through fiscal 2026 per the Philadelphia Department of Revenue). Philadelphia residents pay 3.75% on all earned income regardless of work location; non-residents pay 3.44% on wages earned inside Philadelphia. There is no LST in Philadelphia. PA residents who work in Philadelphia get a credit on their home EIT for taxes paid to Philly up to the home rate.
Last updated May 2026. Sources: PA Department of Community and Economic Development (DCED) Act 32 guide, PA Department of Revenue, Pennsylvania Code Title 53 Chapter 24 (Act 32 of 2008), Philadelphia Department of Revenue 2026 wage tax rates.