Pennsylvania Local Services Tax

Employees working in Pennsylvania are subject to the annual Local Services Tax (LST). This tax is withheld based on employment location, for both Pennsylvania residents and nonresidents working in Pennsylvania.

Note: LST is also known as the head tax.

Employees can request an up-front exemption from the LST by submitting the appropriate paperwork to both the Political Subdivision levying the tax and to you, the employer. For further info, see the Pennsylvania employment agency's website.

You implement approved exemptions for individual employees on their tax card. For further info, see Pennsylvania Tax Exemptions in the Help Center.

For multiple employees, use HCM Data Loader. For further info, see Loading US Data Using HCM Data Loader (2558276.1) on My Oracle Support.