What is the Earned Income Tax (EIT)?

The earned income tax has been levied by your resident taxing jurisdiction (i.e., the township, borough or school district in which you live). Earned income is defined as salaries, wages, commissions, bonuses, incentive payments, fees, tips and/or other compensation for services rendered, whether in cash or property, and whether paid directly to you or through an agent. In addition, the net profits of a business are subject to a net profits tax. Net profits are defined as the net income from the operation of a business, profession, or other activity, except corporations, after deductions for all operating costs and expenses incurred in conducting said business.

Show All Answers

1. I am a New Business in the Township. Is There a Business or Mercantile Tax?
2. I am a New Business in the Township. My Payroll Department is Asking For an ID Number. Where Can I Find This?
3. What income is specifically exempt from the earned income tax?
4. What is the Earned Income Tax (EIT)?
5. If the Tax is Withheld in Another Community Where I Work, Do I Also Pay the District in Which I Live?
6. If I am Subject to the Philadelphia Wage Tax, Must I Also Pay this Tax?
7. Whose Earned Income Tax (EIT) will be Withheld by My Employer?
8. From Whom Will the Earned Income Tax (EIT) be Collected Directly?
9. Must ALL Taxpayers File a Final Return?
10. What if I Neither File a Return, Nor Pay the Tax Due?
11. Must I Return This Questionnaire IF I Have Moved? or Do Not Work?
12. How Can I Obtain a Form for Paying My Local Earned Income Tax?
13. What is the Process to File an Earned Income Tax (EIT) Appeal?