Earned Income Tax

Borough Hall > Borough Departments > Earned Income Tax

The local earned income tax differs from other forms of income tax. It only applies to "earned" income - wages and net profits - unlike the state and federal tax which also include interest and dividends among the many sources of income. The local tax is a flat 1 percent and there is a very limited number of deductions available.

In most cases, the tax is withheld by the employer - just like state and federal taxes - and all that is necessary is fling the annual tax return by April 15th. Those who are self employed, or work for an employer who does not withhold, must make quarterly payments on the amount of tax they estimate will be due.

With the passage of Act 32, the Earned Income Tax is collected on a county-wide basis instead by each community.  The collector for Lehigh County and Catasauqua is Berkheimer Associates.