The School District of Philadelphia imposes a tax on various classes of unearned income which are not subject to Philadelphia Business Income and Receipts Tax or Wage Tax. If you are a Philadelphia resident for a portion of the year, the amounts are pro-rated for your period of residency. Interest earned on savings and checking accounts is exempt. Likewise, interest received from bonds or debt obligations of the Commonwealth of Pennsylvania or its political subdivisions or direct obligations of the Federal Government is exempt from the tax.
The School Income Tax (SIT) is filed annually. The failure of any person to receive a tax return does not excuse them from the responsibility of filing a return and paying the tax due on time. The tax can be filed and paid on-line.