Frequently Asked Questions
What is the Local Services Tax?
The Local Services Tax is a local tax payable by all individuals who hold a job or profession within a taxing jurisdiction imposing the tax. It is due quarterly on a prorated basis determined by the number of pay periods for a calendar year.
- If the total LST rate enacted exceeds $10.00, the tax will be deducted at a rate of $1.00 per week. For areas under Act 199, deductions will be greater than $1.00 per week. If the total LST rate enacted is $10.00 or less, the tax is to be collected in a lump sum.
Note: If you are self-employed – Use the net profit line on your Schedule C, F, etc. to determine if you owe the tax or not.
- The employee will only be required to pay the tax for the period in which they are employed within a political subdivision which imposes the tax.
- If the total LST rate enacted exceeds $10.00, the Act requires that all jurisdictions exempt individuals with incomes within their jurisdictions of less than $12,000 or $15,600 in areas whose rate is greater than $52.00. Employees will have the right to complete a Local Services Tax Exemption Certificate.
If the total LST rate enacted is $10.00 or less, the jurisdiction may choose to exempt individuals with incomes within their jurisdictions of less than $12,000.
Please be advised that the same income exemption may not apply to the school district portion of the tax.
- A person who served in any war or armed conflict in which the United States was engaged, received an honorable discharge and as a result of such service was left blind, a paraplegic, a double or quadruple amputee or has a service connected disability declared by the United States Veterans Administration (or its successor) to be a total one hundred percent permanent disability is exempt from the LST. Likewise, any person who serves as a member of a reserve component of the armed forces and is called to active duty during the tax year is exempt from the tax.
Need a form?
Click here to download an LST-1 form for employers.
Click here to download an LST-3 form for self-employed individuals
***Currently there is no option to file an individual Local Services Tax (LST-3) form online.
The LST-1 and LST-3 Forms should be mailed to:
Berkheimer
PO Box 25156,
Lehigh Valley PA 18002
Local Services Tax – Act 199 FAQ
Local Services Tax – Employer (LST-1) FAQ
Local Services Tax – Individual (LST-3) FAQ
Local Services Tax Rules & Regulations
Local Services Tax Statutory Authorization Explanation
If you have additional/specific questions that are not addressed above, please click on the link to send an inquiry to our customer care department.
