Pennsylvania Local Earned Income Tax (EIT), Explained

Quick Answer

Most Pennsylvania towns charge a local Earned Income Tax (EIT) — usually about 1% of gross wages — on top of the state's 3.07% flat tax. So a typical PA worker pays roughly 4% in state + local income tax before federal tax and FICA. Rates vary by municipality (from ~0.5% to 2%+); Philadelphia instead charges a ~3.75% City Wage Tax. Look up your exact rate with the state's DCED municipal tax finder.

Pennsylvania is unusual: on top of the state's flat 3.07% income tax, most residents also pay a local Earned Income Tax (EIT) to their municipality and school district. It's small — usually about 1% — but it's real money out of every paycheck, and it catches a lot of people off guard.

What is the Earned Income Tax?

The EIT is a local tax on earned income (wages, salaries, commissions, net profits) collected by your municipality and school district. It's administered under Pennsylvania's Act 32, which standardized how these taxes are withheld and remitted across the state.

Typical combined EIT: ~1% of gross wages — but it ranges from about 0.5% to over 2% depending on your locality. Philadelphia is separate, with its own ~3.75% City Wage Tax.

Where you live vs. where you work

Under Act 32, you generally pay the higher of your resident rate (where you live) or your work-location rate — not both in full. Your home municipality gets first claim on the tax; if your work location charges more, the difference usually goes there.

Your employer withholds using two PSD codes (Political Subdivision codes) — one for your home, one for your work location — to send the tax to the right place.

How to find your rate

Use the official DCED lookup

Go to the Pennsylvania DCED municipal tax lookup (the state's official "Address Search" tool).
Enter your home address to get your resident EIT rate and PSD code.
Enter your work address to get the non-resident rate and PSD code.
Give both PSD codes to your employer's payroll so withholding is correct.

Adding it to your take-home math

Because it's a flat percentage, the EIT is easy to layer onto your paycheck math:

PA state tax = gross × 3.07%
Local EIT = gross × your local rate (≈1%)

On a $60,000 salary, a 1% EIT is $600 a year (about $23 per bi-weekly check) — on top of $1,842 in state tax. To handle the federal brackets and FICA, use the Pennsylvania paycheck calculator, then subtract your local EIT. For the statewide picture, see the Pennsylvania salary calculator.

Frequently Asked Questions

What is the Pennsylvania local Earned Income Tax?

The Earned Income Tax (EIT) is a local income tax charged by most Pennsylvania municipalities and school districts, on top of the 3.07% state tax. It's commonly around 1% of gross wages, though the exact rate depends on where you live and work. It's withheld directly from your paycheck under Pennsylvania's Act 32 system.

How much is the local EIT in Pennsylvania?

Most Pennsylvania localities charge a combined EIT of about 1% (split between your municipality and school district), but rates range from around 0.5% to 2%+ depending on the area. Philadelphia is the exception — it charges a City Wage Tax of about 3.75% for residents instead of a standard EIT.

How do I find my local EIT rate?

Use the official Pennsylvania municipal tax lookup maintained by the Department of Community and Economic Development (DCED). Enter your home and work addresses to find your resident and non-resident EIT rates and your Political Subdivision (PSD) code, which your employer needs to withhold correctly.

Do I pay EIT where I live or where I work?

Under Act 32, you generally pay the higher of your resident rate (where you live) or your work-location rate — you don't pay both in full. Your resident municipality gets priority on the tax; if your work location's rate is higher, the difference typically goes to the work locality. Your employer withholds based on both PSD codes.

Is the local EIT on top of the 3.07% state tax?

Yes. Pennsylvania's flat 3.07% state income tax and your local EIT are separate. A typical Pennsylvania worker pays 3.07% state + about 1% local = roughly 4% in Pennsylvania income taxes, before federal tax and FICA.

Does the local EIT have a standard deduction?

No. Like the state tax, the local EIT applies to your gross earned income with no standard deduction or personal exemption. It's a flat percentage of wages, which makes it easy to estimate: gross pay × your local rate.