Pennsylvania local payroll
Montgomery Township, PA payroll tax for remote employees (2026): 1% EIT
Montgomery Township in Franklin County has a resident earned income tax (EIT) of 1%, a non-resident EIT of 0%, and a local services tax (LST) of $52 per year, collected by Franklin County Area Tax 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%
Non-resident EIT
0%
Local services tax
$52
Resident PSD code
280402
Franklin County Area Tax Bureau
Rates verified from the official Pennsylvania DCED statewide EIT/PIT/LST register (official rates as of June 15, 2026). Franklin County Area Tax Bureau is the Act 32 tax collector of record. Confirm account setup and the exact address-level PSD before filing.
Open Franklin County Area Tax 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 Montgomery Township local EIT (1% resident / 0% non-resident) and remit through Franklin County Area Tax Bureau, plus the $52 LST.
- Confirm Pennsylvania workers' compensation coverage for the work location.
Frequently asked questions
What is the local income tax rate in Montgomery Township, PA for 2026?
Montgomery Township has a resident earned income tax (EIT) of 1% and a non-resident EIT of 0%. 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 Montgomery Township?
Under Act 32, the employer withholds the greater of the employee's resident total EIT (1% in Montgomery Township) or the Montgomery Township non-resident work-location rate (0%), and remits it to Franklin County Area Tax Bureau using the address-level PSD code (280402).
What is the PSD code and tax collector for Montgomery Township?
Montgomery Township's EIT is collected by Franklin County Area Tax Bureau. The primary political subdivision (PSD) code is 280402. Confirm the exact address-level PSD in the DCED lookup before payroll.