Earned Income Tax & Local Services Tax

As of 2011 Pennsylvania Law Act 32 was enacted - The Current Tax Collector for the City of Bethlehem’s Earned Income and Local Services Tax, as well as the Borough of Freemansburg’s Earned Income Tax is:

IRWIN, PA 15642
PHONE: (888) 519-3897 or (724) 978-0300
FAX: (724) 978-0339

The City of Bethlehem’s Tax Bureau will continue to administer the Earned Income and Local Services Tax for the City and Earned Income Tax for the Borough of Freemansburg for tax years 2010 and prior. If you have any questions please contact the Tax Bureau at (610) 865-7022.

The following is a short description of the various taxes administered by Keystone Collections Group:

The Earned Income Tax (EIT) is a 1% income tax that is assessed on the gross earnings of residents and non-residents and net profits of residents. Most Pennsylvania employers withhold this tax and list it as the "CITY TAX" or "LOCAL TAX" on an employee's pay stub or W-2 form. Pennsylvania Residents who are self-employed or whose employer does not withhold the tax are required to pay the tax themselves.

Local Services Tax Pennsylvania legislation was enacted into law on December 1, 2004 (PA Act 222 of 2004) that changed the Occupational Privilege Tax (OPT) to an "Emergency and Municipal Services Tax" (EMST) and changed the maximum rate of the tax from $10.00 to $52.00. Effective 1/1/08 the EMST is known as the LST with different withholding requirements.