By Josh McKnight | The McKnight Team
Yardley Borough Council plans to adopt a 1 percent earned income tax at its meeting on Tuesday, October 6, and repeal the per capita tax at the same time. In November the borough intends to cut 10 mills from its 30 mill real estate tax and eliminate the occupational privilege tax.
The Yardley earned income tax is a swap, not an addition, which is what separates it from most municipal tax votes. Councilwoman Martha Howlett, who led the proposal, put real numbers behind both sides of it.
How the Swap Actually Works
The giving up side comes to roughly $372,000. That is the combined cost of repealing the per capita tax, eliminating the occupational privilege tax, and cutting a third of the real estate millage, from 30 mills down to 20.
The collecting side is larger. Howlett said the new Yardley earned income tax should generate about $800,000 next year and eventually $1.6 million annually once fully phased in. The borough nets revenue on the trade, which is the point. A wage tax rises with wages, and a property tax does not rise until someone reassesses, so the swap gives Yardley a revenue source that keeps pace with inflation.
Several exemptions narrow who actually pays. Residents who work in Philadelphia are exempt, because they already pay the city wage tax. Volunteer firefighters may receive a credit. Retirees generally owe nothing on Social Security or most pension income. Whether you land in one of those groups is the first thing to check.
What the Swap Actually Does to the Yardley Earned Income Tax Math
Read those exemptions together and a pattern appears. Retirees are out. Philadelphia commuters are out. The burden lands on you if you work and earn your income anywhere other than the city.
Set that against what the numbers show right now. The typical Yardley home value is $701,097, up 4.1% over the past year, and homes go to pending in about six days, per Zillow data through August 31, 2026. Bucks County as a whole sits at $527,322.
Yardley runs $173,775 above the county typical value. Cutting 10 mills on a house worth that much is real money back. Whether the trade favors you depends entirely on the ratio between what your house is worth and what your household earns.
Why the Pennsbury Clause Is the Line to Watch
Howlett flagged something that deserves more attention than it received. If the Pennsbury School Board later enacts its own earned income tax, Yardley would have to split the 1 percent rate with the district.
Follow what that means. The borough’s $800,000 becomes something closer to $400,000, and the $1.6 million at full phase in becomes $800,000. The revenue that justified cutting 10 mills would be cut in half, while the millage reduction would already be on the books. That is a difficult position for any council to unwind, and a harder one for you to plan around.
Nothing suggests Pennsbury is moving on this. The clause exists because Pennsylvania law caps the combined rate, not because anyone has filed anything. Still, a borough building its budget on a revenue stream that a separate elected body can halve without its consent has accepted a real risk in exchange for a real benefit.
Both things can be true: replacing a flat per capita tax and a stagnant millage with a wage tax is sound municipal finance, and the borough has tied its budget to a number it does not fully control. The vote is October 6 and the meeting is public. If you own or work in Yardley, that hour is worth your time, and worth mentioning to a neighbor who has not heard about it.
What This Means for You
Run your own arithmetic on the Yardley earned income tax before October 6. A retiree in a high value Yardley home is likely a clear winner, keeping the 10 mill cut while owing nothing on pension income. If you are a two earner household working outside Philadelphia in a modestly priced home, you are likely paying more. If you are selling here, a lower millage rate is a useful number to put in front of your buyers, because it lowers their monthly cost.
Yardley does not yet have a dedicated community page on our site, so for the closest read on how Lower Bucks values behave at this price point, start with our Newtown neighborhood guide, which covers a comparable market a few minutes away.
For current Yardley prices, days to contract, neighborhoods, and new construction, see our Yardley PA homes for sale guide, which covers Yardley Borough and Lower Makefield Township.
Thinking about buying or selling in Yardley? Let’s talk.
