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Pennsylvania local payroll

Valley Township, PA payroll tax for remote employees (2026): 1.65% EIT

Valley Township in Montour County has a resident earned income tax (EIT) of 1.65%, a non-resident EIT of 0%, and a local services tax (LST) of $10 per year, collected by Danville Area Earned Income Tax Office. If a remote employee lives or works here, start with Pennsylvania employer withholding, unemployment compensation, workers' compensation, and Act 32 local withholding.

Resident EIT

1.65%

Non-resident EIT

0%

Local services tax

$10

Resident PSD code

470107

Danville Area Earned Income Tax Office

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

Open Danville Area Earned Income Tax Office

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 Valley Township local EIT (1.65% resident / 0% non-resident) and remit through Danville Area Earned Income Tax Office, plus the $10 LST.
  • Confirm Pennsylvania workers' compensation coverage for the work location.

Frequently asked questions

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

Valley Township has a resident earned income tax (EIT) of 1.65% and a non-resident EIT of 0%. The local services tax (LST) is $10 per year. Rates are official as of June 15, 2026.

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

Under Act 32, the employer withholds the greater of the employee's resident total EIT (1.65% in Valley Township) or the Valley Township non-resident work-location rate (0%), and remits it to Danville Area Earned Income Tax Office using the address-level PSD code (470107).

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

Valley Township's EIT is collected by Danville Area Earned Income Tax Office. The primary political subdivision (PSD) code is 470107. Confirm the exact address-level PSD in the DCED lookup before payroll.

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