Which wage figure should I use from my W-2?
Pennsylvania Local Income Tax is calculated on gross taxable wages.
When reviewing your W-2 to determine the taxable gross wages for local tax purposes, use the following steps:
1) Compare the wages reported in boxes 16 (state wages-PA) and 18 (local wages). If the wages are the same, AND there is no higher wage figure listed in any other income boxes, this should be your locally taxable wage.
2) If the PA state wages and local wages are not the same or if no local wage (box 18) is reported or there is a higher wage figure listed in another income box, compare the wages reported in box 5 (Medicare wages) with box 16 (state wages-PA). If these figures are the same, this is your taxable wage.
3) If the box 5 and box 16 figures are different, check box 12 for a code C deduction. If the code C deduction in box 12 is the difference between the Medicare and PA State wages, the PA state wage figure (box 16) is your taxable wage.
Another way to determine locally taxable wages, if there is no wage amount in the local wage box, is to begin with box 1 (Federal wages), then add any 12D reported in box 12 and subtract any 12C reported in box 12. The end result should match the PA state wage figure in box 16 and is the taxable wage.
What is Act 205 Tax and why must I pay it?
Act 205, the Distressed Municipal Pension Recovery Tax Act, was signed into law in 1984 and allows certain municipalities to increase their earned income tax rates to fund their municipal pension liabilities. The State of Pennsylvania must approve all requests to implement Act 205.
Act 205 of 1984 was approved for the City of York starting January 1, 2015. The City of York resident and non-resident EIT tax rate increased from 1% to 1.25%. The increase must be used for the City of York’s distressed pension system. This increase pertains to the City of York and not the County of York.
What does this mean? Anyone residing in and/or working in York City will have a tax rate of at least 1.25% starting January 1, 2015.
An individual’s resident tax rate always takes precedence over the ACT 205 increase. If an individual works in the City of York but lives in an area with a resident tax rate higher than 1.25% the higher resident rate will be used. For example, a Dover resident working in the City of York will continue to have a tax liability of 1.4% - the City of York does not receive any portion of the tax in this situation.
Conversely, if an individual lives in an area where the resident tax rate is less than 1.25% the withholding would be at the higher York City non-resident rate of 1.25%. For example a Dallastown Borough resident working in the City of York will have 1.25% tax rate – 1% to Dallastown and the remaining .25% will be to the City of York. In this case the City of York portion is not refundable – it is allocated to
the City’s distressed pension recovery.
It is important to understand that this rate increase only applies to the City of York. It does not apply to surrounding municipalities and is not determined by your zip code. Many municipalities have a York, PA address and zip but are not located within the City of York. Only those residents or non-residents who live or work within the City’s municipal boundaries are subject to the tax increase.
Am I exempt from Earned Income Tax if I am active military?
On February 23, 2016 Governor Wolf sign PA ACT 6 of 2016 into law. This ACT exempts all active duty military service from the Earned Income Tax, no matter where the active duty was served. The law is not retro-active. This ACT takes effect for taxes levied and collected after December 31, 2015.
Please note that prior to ACT 32 (before 2012) Active Duty pay, no matter where it was earned, was not-taxable. In 2012 ACT 32 made the definition of earned income mirror the PA Department of Revenue’s definition of compensation (except for clergy housing) and thus Active Duty pay earned in Pennsylvania became taxable for Local Income Tax purposes.
How does this affect Local Income Tax Returns?
For the years 2012 through and including 2015 active duty military pay earned in Pennsylvania is taxable. When processing prior years returns for the tax years 2012, 2013, 2014 and 2015 YATB will tax active duty military pay earned in Pennsylvania.
For tax years prior to 2012 and after 2015 active duty military pay earned in Pennsylvania will be not taxable. All active duty military pay is exempt from Local Income Tax effective 1/1/2016.
Can I set up payment plans if my tax account if delinquent?
The York Adams Tax Bureau (“Tax Bureau”) may enter into written agreements with any taxpayer under which the taxpayer is allowed to satisfy liability for any eligible tax in installment payments if the Tax Bureau determines that the agreement will facilitate collection.
The following terms and conditions shall apply to installment plans:
A) The taxpayer must file an annual tax return for the current tax year and any delinquent tax years to be covered under the installment plan. These annual tax returns must include a copy of the taxpayer’s Federal and /or State Tax Return and all supporting documentation as verification that all taxable income has been reported. In cases where a Federal and/or State Tax Return cannot be produced, the taxpayer must complete a Federal Form 4506 “Request for Copies Of Tax Return” naming the York Adams Tax Bureau as recipient of the requested copy. The costs to procure the Federal Tax Return and related information are the sole responsibility of the taxpayer.
B) Installment plans will not be approved for tax amounts less than $ 100.00.
C) Installment Plans will not be approved for more than 6 months. Payment amounts will be calculated by dividing the total tax liability by 6 and adding the applicable penalty, interest, fines, and costs to each payment.
D) Taxpayers will be required to verify that their current year’s tax liability has been satisfied to date either by proof of employer withholding or by direct payment from the taxpayer. Current Liability can be satisfied by adding current estimated tax to Installment Plan.
E) Installment Plans will be granted only 1 time to any taxpayer.
F) Installment Plans will be revoked and immediate civil action or garnishment of wages for collection of the tax due will be initiated if any of the aforementioned terms and conditions are not met.
G) The Tax Bureau may terminate any prior agreement if the information the taxpayer provided to the Tax Bureau prior to the date of the agreement was inaccurate or incomplete, or if the Tax Bureau believes that collection of any eligible tax under the Installment Plan is in jeopardy.
H) If the Tax Bureau finds that the financial condition of the taxpayer has significantly changed, the Tax Bureau may alter, modify or terminate the agreement, but only if notice of the Tax Bureau’s finding is provided to the taxpayer no later than 30 days prior to the date of such action; and the notice contains the reasons why the Tax Bureau believes a change has occurred.
I) The Tax Bureau may alter, modify or terminate an Installment Plan agreement if the taxpayer fails to pay any installment at the time the installment is due, pay any other tax liability at the time the liability is due, or fails to provide a financial condition update as requested by the taxpayer.
J) Nothing in this subsection shall prevent a taxpayer from prepaying in whole or in part any eligible tax under any installment agreement with the Tax Bureau.
Where should I mail my tax return?
Both Adams County and York County Residents should mail their individual tax returns to*:
If you have a PAYMENT DUE as shown on Line 19:
YORK ADAMS TAX BUREAU
PAYMENT ENCLOSED
PO BOX 15627
YORK PA 17405-0156
If you are requesting a REFUND due as shown on Line 14:
YORK ADAMS TAX BUREAU
REFUND DUE
PO BOX 15629
YORK PA 17405-5629
If you have NO PAYMENT/NO REFUND DUE (Lines 14 and 19 are 0 (zero)):
YORK ADAMS TAX BUREAU
NO PAYMENT/NO REFUND DUE
PO BOX 15628
YORK PA 17405-5628
*York County taxpayers who reside in the West Shore School District (including the municipalities of Fairview Township, Newberry Township and Goldsboro Borough) must file with the Cumberland County Tax Bureau, www.cumberlandtax.org, phone 717-590-7997.
Where can I find my local tax rate?
To find your local tax rate using your PSD code, please click here
What should I know as a new resident?
Greetings! Whether you have recently moved to the area from out-of-state, or if you have resided in Pennsylvania all your life, it's important for you to understand Pennsylvania local taxes that may impact you.
In Pennsylvania, in addition to the state personal income tax collected by the PA Department of Revenue, municipalities, school districts and the county may each levy several different types of taxes. These may include the following:
Real Estate Tax – levied by the county, school district and municipality on real estate owned within their jurisdictions. Each taxing authority will levy a different millage rate, and bills are mailed in the spring for county and municipal tax and in the summer for school district tax. This tax may or may not be paid through your mortgage company. Your municipality has a locally elected real estate tax collector who will collect this tax.
Earned Income Tax – levied by the municipality and school district where you reside. It is a tax on gross wages and net profits. Tax rates are 1% or higher depending on the school district where you live, and the tax is shared between the municipality and school district. If you work within Pennsylvania your employer is required to withhold the tax and remit it to the collector where the employer is located. The York Adams Tax Bureau collects the tax for most of York and all of Adams Counties. If you are self-employed or work out-of-state, you are required to make estimated quarterly payments of the tax due. An annual Individual Earned Income Tax Return must be filed with the YATB by April 15 following the end of the tax year. A return must be filed even if you had no earned income. Only permanently retired or disabled individuals with no earned income are exempt from filing.
Local Services Tax – levied by some municipalities where you work. It is an occupational privilege tax of a maximum of $52.00 per year, withheld by your employer at no more than $1.00 per week. YATB is the LST collector for certain municipalities in York and Adams Counties. In other cases, the locally elected tax collector has been appointed to collect the tax. Low income exemptions may apply.
Per Capita Tax – This is an annual head tax of $5.00 or $10.00 levied by some municipalities and school districts. It is collected by your locally elected tax collector. YATB collects delinquent per capita tax for some municipalities and school districts in York and Adams Counties.
Other Taxes – Depending on where you live, you may also pay a street light tax, a fire hydrant tax, an occupational assessment tax or some other special taxes. Check with your municipal office regarding these taxes.
For more information about taxes and where to file them, click here
Para obtener más información sobre impuestos y dónde presentarlos, haga clic aquí
If I live in Railroad Borough, how can I handle my real estate tax?
This office is the appointed tax collector for Railroad Borough real estate tax and per capita tax.
Please contact our office at 717-845-1584 Option 2 with questions concerning your current year Railroad Borough Taxes.
Please contact the York County Tax Claim Bureau with questions about delinquent Railroad Borough real estate tax. You may reach their office at (717) 771-9205.