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Business & farm
The PA Local Services Tax is an employment related tax not based upon income amount. Thus it is not a deductible local income tax.
In the past it could be deducted as a unreimbursed business expense and deducted as an itemized deduction subject to the 2% limitation. However, with the 2017 tax reforms, one can no longer claim unreimbursed business expenses, thus, this tax is not deductible at all.
The maximum LST is $52 per individual per year.
‎June 7, 2019
5:25 PM