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Earned Income Tax

Horsham Township levies an Earned Income tax on its citizens and all non-residents who work in the Township. The rate is one (1.0%) percent of earned income. It is a requirement that all employers located in Horsham Township deduct this tax from the employees’ wages and remit to Berkheimer Tax Administrator. All residents are subject to the tax. The earned income is generally paid to the community in which one lives.

Many employers deduct this tax from employees' paychecks. In that case all you do is file an annual return by April 15th of each year. If you are self-employed or work for an employer who does not deduct this tax, or only a portion of it, you are obligated to file quarterly returns on forms provided by Berkheimer Tax Administrator.

Effective with the start of Tax Year 2012, all employers with locations within the Commonwealth of Pennsylvania, are required to deduct the Earned Income Tax from their employee’s wages, so if you are employed in Pennsylvania, your employer should be deducting the tax from our paycheck and remitting it quarterly to the tax collector for the county in which you are employed. Those funds are then remitted to Montgomery County’s collector and ultimately to the township. You should verify that your employer is properly identifying you as a resident of Horsham Township and withholding a rate of at least 1%. (If you work in an area whose non-resident tax rate is greater than 1%, the employer is required to withhold at that higher rate).

All residents, who had income are required to file an annual local tax return by April 15th of each year. As a resident of the Township, it is your responsibility to obtain the appropriate tax forms. Failure to report or pay the tax could result in substantial penalties and interest.

How to Contact Berkheimer Tax Administrator