UPDATE (November 2, 2021):The City’s new tax filing and payment website, the Philadelphia Tax Center, is now live. From now on, please complete online returns and payments for most City business taxes on the new website. Check out our online tax center guide for help getting started and answers to common questions.

Philadelphia residents with unearned income owe School Income Tax (SIT). They must file and pay it by April 15 of each year. Today is April Fools’ Day, but SIT is not a joke.

SIT is real and has been on the books since 1967. Today, with better data sharing with the IRS, the City can more easily find residents who need to pay it.

Even though both help fund the School District, Real Estate Tax and School Income Tax are two separate taxes. Last year, SIT provided $48.7 million to public schools across Philadelphia.

SIT is based on unearned income. Examples include dividends, royalties, S-Corp distributions, gambling winnings (including Pennsylvania Lottery cash winnings), and some types of interest.

Interest earned from savings or checking accounts, is not taxable under SIT.

File and pay SIT online

If you owe SIT, the best way to file and pay is online.

If you don’t already have a City tax account, you’ll have to register for one on our eFile/ePay site. Registration is fast and free.

Using your registration PIN and Social Security Number, you’ll be ready to file and pay SIT electronically.

Another option is to use tax preparation software approved by the Department of Revenue. Several tax prep packages on the market include School Income Tax returns.

It’s also possible to file a SIT return on paper, and mail in a check. We’ve published a video with line-by-line instructions.

Photo: “An old fashioned boys’ school, 1905,” Library of Congress Prints and Photographs Division. Photograph shows boys in classroom reading at their desk; one boy, wearing a dunce cap, faces the wall.