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.

  1. 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.

  1. 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.
  2. 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.

  1. 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.

 

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