Earned Income Tax

The Township levies an Earned Income/Net Profits Tax of 1.15% of gross compensation and net profits. Of this total, 0.5% collected from residents is turned over to the East Penn School District, 0.5% is for the Township general fund, and 0.15% is for the open space fund. An electoral ballot referendum approved the open space tax on November 2, 2021. Earned Income Tax is usually withheld by your employer, and will appear as a payroll deduction for local or city tax.

The Earned Income Tax is collected by Berkheimer Tax Administrator. To contact Berkheimer, call 866-701-7206 or visit the Berkheimer Tax Innovations website for information.

On Berkheimer's website, you can e-file your annual earned income tax or print, complete and mail the tax form.

Employer Reporting

Every employer located in Lower Macungie Township who has employees must withhold local wage tax and remit it quarterly to Berkheimer Tax Administrators for each employee. The report should list each employee's full name, social security number, full address, and amount of tax applicable to each employee.

Reporting forms and registration forms can be obtained on the Berkheimer Tax Innovations website.

Resident Filing

Every full year or partial year resident must file a local tax return if they have earned income regardless of age. Items which are not taxable for the upcoming tax year include:

• 3rd party sick pay
• Active duty pay
• Bequests
• Capital gains
• Dividends
• Gifts
• Inheritances
• Insurance proceeds
• Interest
• Lottery winnings
• Social security
• Unemployment

Partial year residents should list the date they moved into or out of Lower Macungie Township on the tax return.

Mobile App

Berkheimer Tax Innovations developed a mobile app (BerkApp) to help make filing your local taxes easier and more convenient than ever.

Downloading the App