Local Services Tax

Click here for FAQs on the local service tax, or talk to “your employer.”

What is the Local Services Tax?
The Local Services Tax is a tax levied on individuals who are employed in municipalities or school districts that have enacted the tax.

Who must pay the Local Services Tax?
The Local Services Tax shall be collected through payroll deductions from all employees. Self-employed individuals must pay their own tax.

In Lancaster Township only, this tax is a set fee of $10.00 per year for any person who works in the township. The tax is collected by Berkheimer Associates, and the School District of Lancaster receives the money.

It is collected through a one-time payroll deduction in your first paycheck of the year by your employer.  Any questions regarding this tax should be directed to “your employer.”

  • Any person who works in Lancaster Township whose total taxable income from all sources is less than $5,000 per year is exempt from the payment of this tax if the proper forms are submitted to “your employer.” Click here for the exemption form.