What is earned income tax, and why do I have to pay it?

The earned income tax was enacted in 1965 by the Pennsylvania General Assembly under Act 511. This tax is separate from the Pennsylvania state personal income tax. The York/ Adams Tax Bureau is responsible for collecting this tax for East Hopewell Township residents. This Bureau was created by the 77 participating school districts and municipalities in York and Adams Counties to collect the local earned income/net profits tax for them and to distribute the tax to them on a timely basis. The disposition of these tax monies is at the sole discretion of East Hopewell Township. The Bureau is merely the tax collector and has no control over how the tax money is spent.

The tax is on earned income and net profits and is based on the taxpayer’s place of residence and NOT their place of employment. Part year residents are required to file with the Tax Bureau on any earned income/net profits earned while residing in our taxing jurisdiction. They would also have to file a return with the tax bureau that collects the local tax for the area they moved to or from. If 100% of the income was earned while residing in only one area, that is how it should be reported. If the taxpayer worked for one or more employers during the course of the year, the earnings and tax withheld would have to be pro-rated among the applicable taxing authorities.

For answers to more Frequently Asked Questions, download this Adobe PDF file, which addresses more common tax concerns. Or, visit the York/ Adams Tax Bureau website for more detailed information about Earned Income Tax.

East Hopewell Township | 8916 Hickory Road | Felton, PA 17322-8102