Earned Income Tax

One of Lower Nazareth Township’s largest source of local revenue is our 1.45% earned income tax, which is split as .7% for the Nazareth Area School District, .25% Open Space Preservation, and .5% for the Township.

Local income tax in Pennsylvania is based upon where you live rather than where you work.

The Local Tax Enabling Act requires every employer having a factory, workshop, branch, warehouse, or other place of business within the taxing jurisdiction to register with the earned income tax officer of that district. All employers with worksites within the taxing jurisdiction are required by law to deduct the earned income tax from their employees at that site. You may consult the Local Tax Register at https://dced.pa.gov/local-government/local-income-tax-information/instructions-employers/

Individuals who are self-employed or whose employer doesn’t withhold the full 1.45% are required to pay it directly. Penalties will be added if not paid quarterly.

Lower Nazareth Township requires all persons moving into, out of, or within the Township to apply for a Moving Permit. Securing a Moving Permit allows the Township to document your moving date and forwarding address. This updated information makes processing your tax documents more convenient for you. The fee for a Moving Permit is $5 and permits may be secured at the Township Office during normal business hours.

Questions pertaining to Lower Nazareth Township Earned Income Tax should be directed to our Earned Income Tax Collector, Keystone Collections Group.

Annual Tax Return

Taxpayers with earned income in 2025 are required to file a Final Tax Return by Wednesday April 15, 2026. If you live and work in Pennsylvania, you can e-file on our tax administrator’s secure website, which is available 24/7 at www.KeystoneCollects.com.

Keystone Collections Group’s e-file is the easy, fast and secure way to file your 2025 tax return. You will need your  W-2, your Social Security Number, and any other income documents that may apply (such as a PA-UE or a Schedule C)

If you have questions regarding local tax filing, visit Keystone’s Frequently Asked Questions or call Keystone’s Taxpayer Helpline at 1 866-539-1100 to speak with a local, knowledgeable Taxpayer Service Agent. You can also email your questions 24/7 to Taxpayer Support. Taxpayer Service Agents try to respond to all online inquiries within three business days.

The local Keystone Collections Group office for Northampton County is located at:  Seidersville Hall; 3700 Old Philadelphia Pike; Suite A, Bethlehem, PA 18015. Phone number 888-519-3897.