Pittsburgh Local Services Tax and Earned Income Tax

The flat per-person charge

How does the Local Services Tax work?

The LST is one of the simplest taxes in the US: it is a flat annual charge of $52 on every person who works within the City of Pittsburgh, regardless of how much they earn. Your employer withholds $1 per week (or $2 per biweekly pay period) from your paycheck. It does not matter whether you are a Pittsburgh resident or a suburban commuter — if you work in the city, you pay the LST.

The LST was introduced by Pennsylvania Act 222 of 2004, which allowed municipalities to levy this charge (originally called the Emergency and Municipal Services Tax, later renamed). Pittsburgh uses the revenue primarily for police, fire and emergency services.

Low-income exemption: If your combined earned income from all employers is $12,000 or less per year, you can file an exemption certificate with your employer to stop withholding. If your employer has already withheld LST and you later determine your income fell below the threshold, you can file for a refund through the tax collector.

If you work in multiple Pennsylvania municipalities, you only pay the LST to one — typically the municipality where your primary employer is located. You provide an exemption certificate to secondary employers.

How does the earned income tax work?

The EIT is a percentage-based tax on wages, salaries, commissions and net profits from self-employment. Unlike the LST, the EIT amount scales with your income. In Pennsylvania, the EIT rate is split between two entities:

• The municipality (City of Pittsburgh)
• The school district (Pittsburgh School District)

Each entity sets its own rate, and the combined rate is what you pay. The exact rate can change annually. For the current City of Pittsburgh and Pittsburgh School District EIT rates, check the Jordan Tax Service or the Keystone Collections Group, which administer local taxes in the region.

What do nonresidents working in Pittsburgh pay?

Nonresidents who commute into Pittsburgh for work owe both the LST ($52/year) and the EIT at the Pittsburgh workplace rate. Their home municipality's EIT rate determines whether they owe additional tax at home. The credit mechanism prevents full double taxation but does not always eliminate it entirely — the higher rate wins.

Nonresidents from states other than Pennsylvania face a different situation. The LST still applies (it is a workplace-based tax), but the EIT follows Pennsylvania rules and may not apply the same way to out-of-state residents. Consult the relevant tax collector for interstate situations.

How does Pittsburgh local tax interact with state and federal?

Pittsburgh's local taxes stack on top of Pennsylvania's flat 3.07% state income tax and federal income tax. For a Pittsburgh resident, the total tax picture includes:

1. Federal income tax — graduated brackets
2. FICA — 7.65% employee share
3. PA state income tax — 3.07% flat rate
4. Pittsburgh EIT — combined city + school district rate
5. Pittsburgh LST — $52/year flat

The LST and EIT are deductible on your federal return as state and local taxes, subject to the $10,000 SALT cap for most filers.

What happens if you work remotely from outside Pittsburgh?

The LST and EIT follow different rules for remote workers:

• LST: The $52 charge applies based on where you work, not where you live. If you work from home in a suburb full-time and never go to a Pittsburgh office, the LST should be withheld by the municipality where you actually perform work. However, many employers continue to withhold based on the office address. If you believe the LST was withheld for the wrong municipality, request a refund from Pittsburgh's tax collector and ensure your home municipality receives the correct payment.
• EIT: Under PA Act 32, the EIT is apportioned based on where work is performed. If you split time between a Pittsburgh office and your home in the suburbs, your employer should ideally allocate wages based on days worked in each location. In practice, most employers withhold based on the primary office location and employees reconcile on their annual return.

If your employer over-withholds Pittsburgh EIT for remote-work days, file for a refund through the appropriate tax collector. You will need documentation of your remote-work schedule — an employer letter or work log that shows which days you worked outside city limits.

What happens when you move into or out of Pittsburgh mid-year?

If you move your primary residence into Pittsburgh during the year, you become a Pittsburgh resident from your move date. From that point, you owe the resident EIT on all earned income, not just Pittsburgh-source wages. Before the move date, you were a nonresident and owed EIT only on wages earned within the city.

For the LST, the move does not change your obligation if you were already working in Pittsburgh — you pay the $52 regardless of residence. But if you move into Pittsburgh and also change jobs to one outside the city, the LST follows your new workplace municipality.

File your annual return with the tax collector for each municipality where you had an obligation during the year. The credit system ensures you are not double-taxed on the same wages.

Which agency collects Pittsburgh local taxes?

Pittsburgh's local taxes are collected by third-party agencies authorized under PA Act 32. The City of Pittsburgh uses Jordan Tax Service for the LST and Keystone Collections Group for EIT administration in most of the greater Pittsburgh region. These agencies handle filing, withholding registration, refunds and audits. You can file online through each agency's portal. If you have a dispute about the amount withheld, contact the relevant collector rather than the city itself.