Pennsylvania has the most complex local tax system in the United States. With approximately 2,500 municipalities, each assigned a unique 6-digit Political Subdivision (PSD) code, getting the correct code is critical for proper Earned Income Tax (EIT) withholding. This guide explains how PSD codes work and where to find them.
Opens the Pennsylvania Department of Community & Economic Development official lookup tools
What Is a PSD Code?
A PSD (Political Subdivision) code is a 6-digit number assigned by the Pennsylvania Department of Community & Economic Development (DCED) to every taxing jurisdiction in the state. Employers use PSD codes to determine the correct Local Earned Income Tax (EIT) rate and to route tax payments to the correct tax collector.
How PSD Codes Are Structured
Every PSD code is exactly 6 digits, broken into three parts:
Digits 1-2: County Code
Pennsylvania’s 67 counties are numbered 01-67. For example: 02 = Allegheny (Pittsburgh), 15 = Chester, 23 = Delaware, 46 = Montgomery, 51 = Philadelphia.
Digits 3-4: School District
Identifies the school district within the county. School districts don’t levy EIT themselves, but the code determines which municipality grouping applies.
Digits 5-6: Municipality
Identifies the specific borough, township, or city within the school district. This is the taxing jurisdiction that sets the EIT rate.
Full Code = Unique Location
The complete 6-digit code uniquely identifies every taxing jurisdiction in PA. Two municipalities with the same name in different counties will have different PSD codes.
PA Local Tax Types
Employers withholding PA local taxes need to understand three key tax types:
| Tax | Rate Range | Who Pays | How It Works |
|---|---|---|---|
| Earned Income Tax (EIT) | 0.5% – 3.9% | Residents & nonresidents working in municipality | Split between municipality and school district. Employers withhold based on the HIGHER of resident or work location rate. Nonresident rate may differ. |
| Local Services Tax (LST) | Up to $52/year | Anyone working in a municipality that levies it | Flat annual amount (usually $52), withheld from work location. Exemption available if total earned income is below a threshold (typically $12,000). |
| Philadelphia Wage Tax | 3.75% / 3.44% | Philadelphia residents (3.75%) and nonresidents working in Philly (3.44%) | Administered directly by the City of Philadelphia – NOT through the EIT system. Separate registration and filing. |
Resident vs. Work Location Rules
This means employers need two PSD codes for each PA employee:
Resident PSD Code
Based on the employee’s home address. Determines the resident EIT rate and which tax collector receives the resident portion.
Work Location PSD Code
Based on the employer’s physical work location in PA. Determines the nonresident EIT rate for that location.
Major PA Tax Collectors
PA local taxes are collected by designated tax officers, not by the state. The major collectors are:
| Collector | Coverage | Website |
|---|---|---|
| Keystone Collections Group | Largest collector – covers most of western and central PA (~40% of all PA municipalities) | keystonecollects.com |
| Berkheimer Tax Administrator | Major collector covering many municipalities in eastern and central PA | hab-inc.com |
| Jordan Tax Service | Covers municipalities primarily in Allegheny County and surrounding areas | jordantax.com |
| York Adams Tax Bureau (YATB) | Covers York and Adams counties | yatb.com |
| Capital Tax Collection Bureau | Covers Dauphin County (Harrisburg area) | captax.com |
| Philadelphia Revenue Dept | Philadelphia only (wage tax, not EIT) | phila.gov/revenue |
Quick Reference Links
Information reflects 2026 tax year. Rates, PSD codes, and collector assignments can change annually. Always verify with the official DCED lookup tool and your designated tax collector. This guide is for informational purposes only and does not constitute tax or legal advice.