PA Local Services Tax Forms

The Local Services Tax (LST) is a local tax payable by:

• Individuals with a job

• Individuals Employed in municipalities or school districts within a taxing jurisdiction imposing the tax.

This tax is due quarterly on a prorated basis, based on the number of pay periods for a calendar year.

If the total LST rate enacted exceeds $10, the tax must be assessed and collected on a prorated basis determined by the number of payroll periods established by an employer for a calendar year. The tax assessed on each employee for a payroll period is calculated by dividing the total rate of the LST by the number of payroll periods established by the employer for the calendar year. When calculating the prorated share, employers are required to round down to the penny. 

If the total LST rate enacted is $10 or less, the tax is to be collected in a lump sum.

Act 199 allows municipalities to raise their LST above $52, but exempts individuals within their jurisdiction who have incomes less than the state-specified limit.

The PA Local Services Tax Forms page allows you to line up and create local service tax forms, and generate receipts and reports. 

Menu Path

Choose Human Resources from the main navigation menu, then choose State. Click PA Local Services Tax Forms.  

Selection Rule 

Employee records matching the specified Report Criteria are selected and reported.

Print Lineups

Use this option to line up and create or print the Local Service Tax forms.

1. On the PA Local Service Tax Forms page, click Lineup.

2. Select the Destination for the file:

   • Select File to save the file in .rpt format. 

   • Select Screen to save the file in .pdf format.

3. Click OK.

4. Save the file.

Print Receipts 

Use this option to print receipts for the Local Services Tax forms. 

1. On the PA Local Service Tax Forms page, click Print Receipts, then select a Sort Order.

2. Under Report Criteria, select or enter the required criteria.

3. Click Accept. 

4. If you want to include the entire Social Security Number in the file, click Yes.

5. Select the Destination for the file:

   • Select File to save the file in .rpt format. 

   • Select Screen to save the file in .pdf format.

6. Click OK.

7. Save the file.

Create File 

1. On the PA Local Service Tax Forms page, enter the Year, and Deduction Code and select the Employee Number.

2. Click Accept. 

3. If you want to include the entire Social Security Number in the report, click Yes.

4. Select the Destination for the report:

   • Select File to save the report in .rpt format. 

   • Select Screen to save the report in .pdf format.

5. Click OK.

6. Save the file and navigate to the folder containing the report file. 

7. Inspect the file. Update data if needed. 

8. Repeat these steps until all the required data is included.