Bristol Township Homes Sold for $397,000. Now the Township Wants to Double Its Wage Tax.

Bristol Township earned income tax

By Josh McKnight | The McKnight Team

Bristol Township homes sold for a median of $397,000 from April through September 2026, with a median of 8 days to contract, per Bright MLS data in our Bucks County housing market report.

The Bristol Township earned income tax could double for 2027. Council is weighing a move from 0.5% to 1%, and Council President Craig Bowen has said the goal is to cut the property tax rate if the wage tax goes up. Council plans to vote on December 17 as part of adopting the 2027 budget, the township says. The proposal was laid out at an October 15 meeting covered by LevittownNow.

Our read: at a $397,000 median, many buyers are stretching to qualify. Lenders count property tax in the monthly payment they approve. They do not count a wage tax. So a property tax cut helps a buyer qualify, even if the wage tax goes up.

Why the Township Wants More Revenue

Dan Connelly, a consultant with Keystone Municipal Solutions, walked council through a five-year projection on October 15. Without changes, he projects a deficit of about $3.1 million in 2027. Workforce costs make up about 75% of spending and have grown about 8% a year since 2021.

The township collects about $9 million a year from its current wage tax. At 1%, Connelly projects a surplus of about $2.5 million in 2027, even if only 60% of the new money arrives in the first year. He called it “not a free lunch.”

Who Would Pay More Under the Bristol Township Earned Income Tax?

About 26,500 township residents work. For most of them, the total tax would not change. If you work in a town that already charges 1%, you pay 0.5% to Bristol Township now and the rest to that town. At 1%, the full amount would come to Bristol Township instead. Connelly estimates $4 million to $4.3 million a year would shift this way.

If you work in Philadelphia, you already pay the city wage tax, and the state credits it against your local tax. About 4,200 residents fall in this group. Their bill would not change, and the township would not collect more from them.

The new cost lands on about 30% of working residents, by the consultant’s estimate. That includes about 2,900 people who live and work in the township. A resident earning $60,000 at a local job would pay $300 more a year. Pensions, Social Security, and disability benefits are not subject to the tax. Officials have said waivers for lower-income residents are possible but have not defined them.

How Much Could Your Property Tax Bill Drop?

The total township rate is just under 25 mills. An owner with a $20,000 assessment pays $499.60 a year in township real estate tax. Connelly said the projected $2.5 million surplus equals about six mills. If council cut six mills, that owner would save $120 a year.

No specific cut has been proposed. Connelly warned against cutting too deep, since surpluses shrink as costs rise. Your school tax is a separate and larger part of your bill. The Bristol Township School District does not levy an earned income tax, and it could only add one through a voter referendum.

Before You List or Buy in Levittown or Bristol Township

If you are selling, watch the December 17 budget vote. A lower township tax line on your listing is a small but real selling point for a buyer who has to qualify. If you are buying, property tax goes into your monthly escrow payment and counts toward what a lender approves. A wage tax does not. For current prices and inventory in both the township and the borough, see our Bristol community page.

Frequently Asked Questions About the Bristol Township Earned Income Tax

When would the higher Bristol Township wage tax start?

The proposal is for 2027. Council plans to vote on December 17, 2026, as part of adopting the budget. Until council approves the 1% rate, employers keep withholding at 0.5%.

I work in Philadelphia. Will I pay more?

In most cases, no. Philadelphia keeps its wage tax, and the state credits it against your local earned income tax. About 4,200 township residents work in the city, according to the consultant’s figures presented in October.

Is my pension or Social Security taxed?

No. Retirement income, pensions, Social Security, and disability benefits are not subject to the earned income tax. A retired owner could come out ahead if council pairs the wage tax increase with a property tax cut.

How much would my property taxes go down?

No cut has been proposed yet. The consultant said the projected $2.5 million surplus equals about six mills. On a $20,000 assessment, a six-mill cut would save $120 a year on the township portion of your bill.

Thinking about buying or selling in Bristol Township? Let’s talk.

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