Earned Income and Local Services Taxes

This page has information about Earned Income and Local Services Taxes. 

What is earned income? 

Earned income includes all the taxable income and wages you get from working for someone else, yourself or from a business.
See the IRS website for information on types of earned income

What is Local Services Tax? 

The Local Services Tax is a local tax paid by individuals who have work in the area. In Uwchlan Township, it is set at $52.00 a year and is deducted as you get paid. For example, if you're paid weekly, $1.00 a week is deducted. If you're paid bi-weekly, $2.00 every two weeks is deducted.

Exemptions and refunds

Depending on your situation, you may be exempt from this tax. For example, if you:

  • have overpaid by more than $1.00
  • have multiple employers
  • have earned less than $12,000 in the last year (from all income sources)
  • are Active Military
  • have Military Disability.

How to apply for a refund

You'll need to contact Keystone Collections Group to apply for a refund.
See their website for more information

Who collects these taxes? 

Keystone Collections Group collects both earned income and local services tax. 

Keystone started collections for the Chester County Tax Committee in 2011. They are the collector for school and municipal tax authorities in Chester County. 

This follows the Local Tax Enabling Act (32 of 2008). A law which standardizes the local earned income tax system. 
Visit the Keystone Collections Group website for more information