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Pennsylvania local payroll

Bethlehem Township, PA payroll tax for remote employees (2026): 1% EIT

Bethlehem Township in Northampton County has a resident earned income tax (EIT) of 1%, a non-resident EIT of 1%, and a local services tax (LST) of $52 per year, collected by Keystone Collections Group. If a remote employee lives or works here, start with Pennsylvania employer withholding, unemployment compensation, workers' compensation, and Act 32 local withholding.

Resident EIT

1%

Non-resident EIT

1%

Local services tax

$52

Resident PSD code

480203

Keystone Collections Group

Rates verified from the official Pennsylvania DCED statewide EIT/PIT/LST register (official rates as of June 15, 2026). Keystone Collections Group is the Act 32 tax collector of record. Confirm account setup and the exact address-level PSD before filing.

Open Keystone Collections Group

Confirm the address-level PSD

Act 32 withholding is address-sensitive. Use the DCED PSD lookup with the employee's exact residence and work address, and save the generated report for the payroll file.

Open PA DCED PSD lookup

First-pass checklist

  • Register Pennsylvania employer withholding through myPATH if state withholding applies.
  • Register or confirm Pennsylvania unemployment compensation account status.
  • Collect the PA Residency Certification Form for residence and work PSD codes.
  • Apply the Bethlehem Township local EIT (1% resident / 1% non-resident) and remit through Keystone Collections Group, plus the $52 LST.
  • Confirm Pennsylvania workers' compensation coverage for the work location.

Frequently asked questions

What is the local income tax rate in Bethlehem Township, PA for 2026?

Bethlehem Township has a resident earned income tax (EIT) of 1% and a non-resident EIT of 1%. The local services tax (LST) is $52 per year. Rates are official as of June 15, 2026.

Do I withhold local tax for a remote employee working in Bethlehem Township?

Under Act 32, the employer withholds the greater of the employee's resident total EIT (1% in Bethlehem Township) or the Bethlehem Township non-resident work-location rate (1%), and remits it to Keystone Collections Group using the address-level PSD code (480203).

What is the PSD code and tax collector for Bethlehem Township?

Bethlehem Township's EIT is collected by Keystone Collections Group. The primary political subdivision (PSD) code is 480203. Confirm the exact address-level PSD in the DCED lookup before payroll.

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