Madison Township, Pennsylvania local income tax

Lackawanna County · tax year 2026

1% resident earned income tax

0.5% goes to Madison and 0.5% to North Pocono School District. People who work in Madison but live elsewhere owe a nonresident rate of 0.5%.

PSD code
350605
for Form W-2 and withholding
Nonresident EIT
0.5%
Local services tax
$0
a year per employee
Population
2,514
Census estimate, 2025

Rates and collector

PSD codeResident EITNonresidentLSTEIT collector
3506051%0.5%$0Berkheimer Tax Administrator
(610) 599-3139

Madison is in the North Pocono School District and the Lackawanna Tax Collection District. Collector website: www.hab-inc.com.

What employers withhold

Pennsylvania employers withhold local earned income tax at the higher of two rates: the total resident rate where the employee lives, or the nonresident rate where they work. For someone who lives and works in Madison, that's 1%: about $500 a year on $50,000 of wages. Report the employee's PSD code on Form W-2 and on the quarterly return to the collector.

The local services tax (LST) of $0 a year is withheld from people who work in Madison, usually in equal amounts each pay period.

Pennsylvania's Act 32 rules: DCED local withholding tax FAQs.

Nearby in Lackawanna Tax Collection District

All 40 municipalities in Lackawanna County

Running payroll in Madison, PA?

Sources

We copy figures from official sources and re-check them against the source before every update. See our methodology. This is general information, not legal advice.