Pennsylvania local payroll
Lancaster City, PA payroll tax for remote employees (2026): 1.6% EIT
Lancaster City in Lancaster County has a resident earned income tax (EIT) of 1.6%, a non-resident EIT of 1%, and a local services tax (LST) of $47–$52 per year, collected by Lancaster County Tax Collection Bureau. If a remote employee lives or works here, start with Pennsylvania employer withholding, unemployment compensation, workers' compensation, and Act 32 local withholding.
Resident EIT
1.6%
Non-resident EIT
1%
Local services tax
$47–$52
Resident PSD code
360399
Lancaster City spans more than one school district
The municipal EIT is the same everywhere in Lancaster City, but the total resident rate changes with the school district. Match the employee's home address to the right PSD code.
| School district | Total resident rate | PSD code |
|---|---|---|
| Conestoga Valley S D | 1.6% | 360399 |
| Lampeter-strasbg S D | 1.6% | 360999 |
| Lancaster S D | 1.6% | 361001 |
Lancaster County Tax Collection Bureau
Rates verified from the official Pennsylvania DCED statewide EIT/PIT/LST register (official rates as of June 15, 2026). Lancaster County Tax Collection Bureau is the Act 32 tax collector of record. Confirm account setup and the exact address-level PSD before filing.
Open Lancaster County Tax Collection BureauConfirm 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 lookupFirst-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 Lancaster City local EIT (1.6% resident / 1% non-resident) and remit through Lancaster County Tax Collection Bureau, plus the $47–$52 LST.
- Confirm Pennsylvania workers' compensation coverage for the work location.
Frequently asked questions
What is the local income tax rate in Lancaster City, PA for 2026?
Lancaster City has a resident earned income tax (EIT) of 1.6% and a non-resident EIT of 1%. The local services tax (LST) is $47–$52 per year. Rates are official as of June 15, 2026.
Do I withhold local tax for a remote employee working in Lancaster City?
Under Act 32, the employer withholds the greater of the employee's resident total EIT (1.6% in Lancaster City) or the Lancaster City non-resident work-location rate (1%), and remits it to Lancaster County Tax Collection Bureau using the address-level PSD code (360399).
What is the PSD code and tax collector for Lancaster City?
Lancaster City's EIT is collected by Lancaster County Tax Collection Bureau. The primary political subdivision (PSD) code is 360399, though the municipality spans more than one school district, so the total resident rate ranges 1.6% depending on the resident's school district. Confirm the exact address-level PSD in the DCED lookup before payroll.