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.

The School Income Tax (SIT) has been a fixture of Philadelphia’s tax landscape for decades, but it’s still unfamiliar to many residents. As tax season kicks off, we count down the 10 most important things to know about it.

10. The School Income Tax has been on the books since 1967. Today, with better data sharing with the IRS, the City can find folks who need to pay it.

9. Both the School Income Tax and Real Estate Taxes help fund Philadelphia’s school district, but they are two separate taxes.

8. All School Income Tax revenue goes directly to our public schools. SIT gave $42 million to neighborhood schools last year.

7. The School Income Tax is based on unearned revenue. Examples include dividends, royalties, S-Corp distributions, gambling winnings, including Pennsylvania Lottery cash winnings, and some types of interest.

6. No School Income Tax is due from interest earned on savings or checking accounts.

5. Taxpayers who owe School Income Tax are responsible for filing a return and paying on time—or risk interest and fines. The City won’t send bills for what is owed.

4. The School Income Tax applies to Philadelphia residents only.

3. The current School Income Tax rate is 3.8907%. It has decreased steadily since 1995, so check the Department of Revenue’s website for the right figure.

2. The School Income Tax must be filed annually by April 15, at the same time federal income taxes are filed.

1. You can file and pay the School Income Tax online.

Photo credit: Jason Murphy, flickr