Nicholson Township, Pennsylvania local income tax

Fayette County · tax year 2026

1% resident earned income tax

0.5% goes to Nicholson and 0.5% to Albert Gallatin A School District. People who work in Nicholson but live elsewhere owe a nonresident rate of 1%.

PSD code
260105
for Form W-2 and withholding
Nonresident EIT
1%
Local services tax
$10
a year per employee
Population
1,650
Census estimate, 2025

Rates and collector

PSD codeResident EITNonresidentLSTEIT collector
2601051%1%$10Southwest Regional Tax Bureau
(800) 832-2314

Nicholson is in the Albert Gallatin A School District and the Fayette Tax Collection District. Collector website: www.swrtb.org.

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 Nicholson, 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 $10 a year is withheld from people who work in Nicholson, usually in equal amounts each pay period.

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

Nearby in Fayette Tax Collection District

All 42 municipalities in Fayette County

Running payroll in Nicholson, 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.