Who pays the tax
If you are a Philadelphia resident who receives certain types of unearned income, you must pay School Income Tax (SIT). Taxable forms of unearned income include dividends, royalties, short-term rental income, cash lottery winnings from the Pennsylvania Lottery, and some types of interest. Read the official School Income Tax regulations for a complete list of taxable income types.
If you must amend an SIT return, complete a new tax return with the updated amount. Place an “X” in the box that indicates the form is an amended return.
The School Income Tax must be filed annually by April 15. 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.
Tax rates, penalties, & fees
How much is it?
For Tax Year 2018:
3.8809% for Philadelphia residents
For Tax Year 2017:
3.8907% for Philadelphia residents
For Tax Year 2016:
3.9004% for Philadelphia residents
What happens if you don't pay on time?
If you don’t pay on time, interest and penalties will be added to the amount you owe.
For more information about rates, see our Interest, penalties, and fees page.
Discounts & exemptions
Are you eligible for a discount?
No discounts are available for the School Income Tax. However, if you are a Philadelphia resident for a portion of the year, the tax is adjusted so you only pay for unearned income received during your period of residency.
Can you be excused from paying the tax?
The following types of unearned income are exempt from School Income Tax:
- Interest earned on savings and checking accounts
- Interest received from bonds or debt obligations of the Commonwealth of Pennsylvania or its political subdivisions
- Interest received from direct obligations of the federal government