Earned Income Tax and Net Profits
The Earned Income Tax and Net Profits Tax for Fiscal Year 2014-15 is set at 1%, which is shared with Warminster Township, the Borough of Ivyland and Upper Southampton Township.
About Act 32
This law amended the Local Tax Enabling Act to require the county-wide consolidated collection of earned income tax (EIT) by 2012, excluding Philadelphia (which does not levy an EIT). Each political subdivision, such as Centennial School District, levying an EIT will be represented on a county-based committee that appoints a single tax collector to administer and collect local income taxes within the tax collection district. (Allegheny County will have up to four sub-districts, each of which can have its own collector or merge with other sub-districts or counties.) Each tax collector will be a nonresident collector and collect employer withholding taxes owed to the employee’s place of residence, for redistribution to other counties within 30 days. Employers with multiple worksites across Pennsylvania would be permitted to remit local income taxes to just one collector.