Pennsylvania Local Earned Income Tax and Local Services Tax
Employers withhold local EIT and LST. The rate comes from the worksite address.
The rule
The Pennsylvania Department of Community and Economic Development says an employer with a worksite in Pennsylvania withholds and remits local earned income tax (EIT) and the Local Services Tax (LST) for employees working in the state. Worksites include offices and the home of a home-based employee.
There is no single statewide rate on that page. The employer looks up the PSD code, the EIT rate, and the LST rate in the Address Search Application and keeps the report. Each employee completes a Residency Certification Form so the withholding matches the right municipality. The Act 32 procedure manual says the employer withholds the greater of the resident EIT rate and the nonresident EIT rate. The same manual says the LST is based on where the employee works, not where the employee lives.
Quarterly EIT filings and payments are due within 30 days after the calendar quarter. The annual W-2R reconciliation is due by the last day of February. A new employer registers with the local tax collector, usually from the address-search report.
What employers must do
Look up the worksite before the first Pennsylvania paycheck. Have the associate complete the Residency Certification Form, and a new one if the address changes. Register with the collector on the report. Withhold the greater of the resident and nonresident EIT rates, and the LST rate for the worksite. File the quarter within 30 days after it ends, and file the W-2R by the last day of February. A dollar cap on the LST was not stated on the employer page or in the manual sections reviewed. Use the rate from the address lookup.
Effective dates
These are the employer steps on the Department's instructions and in the Act 32 procedure manual, reviewed November 7, 2026. No 2027 rate schedule was on those pages. Philadelphia's city wage tax was not on them and is not stated here.
What this means for BOSS partners and associates
Tell BOSS the Pennsylvania worksite address before the assignment starts, including a home office. Associates should complete the residency form with the address they actually live at. Do not assume one EIT or LST rate for every Pennsylvania assignment.
Questions? Contact BOSS Support at support@backofficenow.com.
Sources
This article is general information, not legal advice. Laws change; check with BOSS Support or your own counsel for your situation.