Act 32 Glossary
These terms are used solely for the purposes of this website. For the full statutory definitions of these terms, please click here. (NOTE: This link provides access to the text of Act 32, as finally passed by the Pennsylvania General Assembly. The original text of the law may no longer be current. Jordan Tax Service, Inc. does not warrant any content linked to this page. Users should seek legal assistance to verify the current status of the law.)
EARNED INCOME TAX (EIT) – EIT is the tax levied by a political subdivision on earned income, such as wages, salaries, or other compensation.
EMPLOYEE – An employee is a person who works for any Employer(s) for a wage, salary, or other compensation.
NON-RESIDENT EIT RATE – The non-resident EIT rate is the earned income tax rate imposed on an Employee by the municipality in which he or she works. Under Act 32, an Employer is generally required to withhold at the higher of the Employee’s resident or non-resident rate. To view the non-resident EIT rates for municipalities in Pennsylvania, please click here.
RESIDENT EIT RATE – The resident EIT rate is the earned income tax rate imposed on an Employee by the municipality and/or school district where he or she lives. Under Act 32, an Employer is generally required to withhold at the higher of the Employee’s resident or non-resident rate. To view the resident EIT rates for municipalities and school districts in Pennsylvania, please click here.
TAX COLLECTION COMMITTEE (TCC) – A TCC is the committee established to govern each TCD for the purpose of collecting EIT. A TCC can represent a single TCD, or can be a joint TCC, representing more than one TCD.
TAX COLLECTION DISTRICT (TCD) – A TCD is an area outlined and designated by statute for the purpose of collecting income taxes for the PSDs within its borders. Most TCD borders are coterminous with county borders, except for within Allegheny County and Philadelphia City/County.