EAST MARLBOROUGH TWP, PA — East Marlborough Township supervisors voted Sept. 29 to advertise a proposed 1% earned-income tax for 2027 that the township estimates could generate about $1.7 million annually, advancing a new revenue source intended to help fund roads, public safety, capital projects and other municipal costs.
The tax has not been adopted. Supervisors are scheduled to make a final decision at a special meeting Nov. 4 at 6:30 p.m.
The proposed ordinance would impose a 1% tax on the earned income and net profits of township residents and a 1% tax on income and net profits earned by nonresidents working in East Marlborough. Collection would begin Jan. 1, 2027, if supervisors approve the ordinance.
The proposal represents a shift in how East Marlborough would finance municipal operations and long-term infrastructure. Township officials have identified an immediate annual revenue shortfall of about $2.57 million across capital improvements, road paving, public works, police and municipal buildings.
The largest components are a $967,500 capital-improvement shortfall and a $750,000 gap in the township’s road-paving program. East Marlborough also projects shortfalls of $580,000 for buildings and grounds, $145,000 for police and $125,000 for public works.
Township estimates indicate a 1% EIT could produce approximately $1.76 million annually, although actual collections could vary because some residents work in Philadelphia or outside Pennsylvania and others receive retirement income rather than taxable earned income.
A significant portion of the potential revenue would not represent a new tax burden for residents already paying a local earned-income tax where they work. Residents employed in another Pennsylvania municipality with a 1% EIT would generally continue paying the same rate, but the revenue would instead flow to East Marlborough.
Township figures show about $1.41 million in EIT paid in 2025 by East Marlborough residents was collected by other Pennsylvania taxing jurisdictions. That included about $700,700 collected through Keystone Collections for Chester County municipalities and approximately $503,200 associated with the Kennett Consolidated School District.
The impact would differ for residents depending on where they work. Those working in Pennsylvania municipalities without a nonresident EIT, or with a rate below 1%, could see their tax obligation increase. East Marlborough residents working in Philadelphia would generally continue paying the city’s tax without an additional East Marlborough liability, according to the township’s analysis.
Residents whose income consists solely of sources such as Social Security, pensions, unemployment benefits or other exempt income would not be affected. The tax generally applies to wages, salaries, commissions, bonuses, tips and net business profits.
East Marlborough has tied the proposed tax to mounting infrastructure and staffing costs. Its 20-year road program calls for paving about 3.15 miles of the township’s 63 miles of roads annually, with an estimated annual paving cost of about $1.08 million compared with roughly $325,000 in annual state liquid-fuels revenue.
The township is also planning for public works retirements, additional staffing and replacement or expansion of municipal facilities. Its police department has operated from trailers since 2002, with the current double-wide trailer in use since 2015.
The township describes the EIT as part of a longer-term strategy to finance capital and infrastructure needs more predictably and reduce reliance on property taxes and large periodic property-tax increases.
Keystone Collections Group would administer the tax. Under Pennsylvania’s Act 32 system, East Marlborough must use the collector appointed by the Chester County Tax Collection Committee.
The township’s information on the proposal and proposed ordinance is available at eastmarlborough.org/earned-income-tax-possible-in-2027/.
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