After multiple attempts, Upper Darby Township Council has officially approved the implementation of a 1% earned income tax (EIT), set to take effect on July 1, 2025. This decision follows a long debate over township funding and potential property tax relief.

What Is the Earned Income Tax and Why Was It Approved?

The EIT was initially proposed in 2023 but faced legal hurdles before finally passing. Mayor Ed Brown emphasized that the tax is essential for supporting the township’s financial needs. The revenue generated—an estimated $10 million annually—will go into the general fund to address capital budget shortfalls.

Key Points About the EIT:

  • 1% tax on earned income (wages, salaries, and other compensation)

  • Effective July 1, 2025

  • Funds will support township infrastructure and essential services

  • Potential for property tax reductions in the future

Will the School District Claim a Portion of the Tax?

One major discussion point has been whether the Upper Darby School District will attempt to claim up to 0.5% of the EIT revenue. While this is legally possible, it would require a public referendum before moving forward.

How Will This Impact Upper Darby Residents?

Council President Hafiz Tunis acknowledged that no one likes new taxes but reassured residents that they will see a return on investment through improved township services. The additional funds could lead to infrastructure upgrades, municipal improvements, and possibly lower property taxes over time.

What This Means for Homeowners and Buyers

  • Potential Property Tax Relief – If the EIT successfully funds township expenses, Mayor Brown hopes to offset property taxes, making homeownership more affordable.

  • Real Estate Market Impact – Increased township revenue could lead to better-maintained neighborhoods, potentially boosting property values.

  • Financial Considerations for Residents – Homebuyers and current residents should consider how the EIT might affect overall tax obligations.

Stay Informed on Upper Darby’s Tax and Housing Updates

As the EIT goes into effect, it’s essential for homeowners, potential buyers, and investors to stay informed about how this tax will impact property values, affordability, and local services.

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Source: Daily Times, February 21, 2025