Earned Income Tax

Residents and non-residents employed in the Township are taxed at 1% of their earned income. Half supports the Township and the other 50% supports the School District. The EIT provides 25% of the Township's revenue.

Act 32 is a law that·reforms and standardizes the local earned income tax system. A committee made up of representatives from local municipalities and school districts has appointed Keystone Collections Group to collect the Earned Income Tax (EIT) in Derry Township.

Act 32 requires uniform withholding of earned income taxes and remittance to a single local collector or Tax Officer. The Act applies to the earned income taxes levied and collected after December 31, 2011.

Employers must begin to withhold the local EIT from employees on January 1, 2012. Appointed tax officers start collecting the EIT on January 1, 2012, unless the tax collection district has·opted for early implementation.