Springfield Township Enacts Local Earned Income Tax Effective July 1, 2026

Springfield Township recently passed an ordinance to begin collecting a local earned income tax effective July 1, 2026. The tax will be assessed to Township residents regardless of where they work and non-residents working in the Township at 1% of earned income and net profits. This rate will be effective as of July 1, 2026.

Keystone Collections Group, the Act 32 tax officer servicing municipalities and school districts in Delaware County, will be responsible for collecting the tax and distributing the tax funds to Springfield Township. Pennsylvania law requires employers to withhold earned income tax beginning on July 1, 2026. Payroll withholding and payment is due from business employers within 30 days after the close of each calendar quarter to avoid statutory penalty, interest and Act 192 costs. Employers must report local payroll taxes online using its Business Portal, unless they engage the services of a payroll servicing company. Business.KeystoneCollects.com

​Non-residents who already pay the tax in their home community will not be double taxed. Residents working in Philadelphia who are already subject to the commuter tax there will not owe the Springfield Township tax due to the Philadelphia commuter tax credit. 

Due to the mid-year rate adjustment, earned income and net profits earned from January 1, 2026 through June 30, 2026 will not be taxed. Earned income and net profits earned from July 1, 2026 through December 31, 2026 will be taxed at 1.0%. Information detailing this change will be mailed to both taxpayers and employers in June. Tax forms for annual filing and instructions will also be provided to taxpayers later this year.

“Keystone’s goal is to make the 2026 tax filing process as seamless as possible. Our team of tax experts will provide clear instructions for Springfield Township residents and explain this mid-year tax rate implementation,” said Joe Lazzaro, Keystone Vice President. “Keystone is prepared to help Springfield Township taxpayers and provide the best assistance available”.

At the appropriate time, Keystone’s website KeystoneCollects.com will be updated regarding this change