Bristol Twp. Studies Earned Income Tax Hike To Offset Property Taxes

Bristol Township officials are studying an increase to the earned income tax as a means to potentially reduce the real estate tax.

The Bristol Township Council voted Thursday evening to approve a $17,500 proposal from Keystone Municipal Solutions to analyze the potential impact of doubling the township’s earned income tax (EIT) from 0.5 percent to 1 percent.

The move is designed to bring the township in line with most neighboring municipalities that already levy the full 1 percent rate.

Currently, many residents working outside the township already pay the higher rate to other jurisdictions, while Bristol Township only collects half a percent, Township Manager Randy Mazur said.

Council President Bowen said the study is a prerequisite for any actual change to the township’s tax system.

“Our goal is if we do increase the EIT to reduce the millage,” Bowen said during the meeting. “Hence, the professional analysis.”

One of the motives for studying the shift is to reduce the financial pressure on residents, including seniors living on fixed incomes.

Because the EIT is based on earnings rather than property value, residents with limited or no active income, like retirees, could see a reduction in their local tax burden if property millage rates are lowered.

The analysis will also include an updated five-year financial forecast for the municipality of more than 54,000.

The township is also looking at the millage rates for fire protection and parks and recreation services.

Mazur said the township’s financial outlook is evolving as it grows.

Bristol Township previously reported surpluses, but those figures were often the result of budgeting for staff positions that remained vacant.

“We had said years ago we had a lot of surpluses because we were budgeting for a full complement of staff,” Mazur said. “We hadn’t been hiring them. Now we’re hiring them, so our financials are going to start looking different.”

The township, which operates on a $76.3 million budget, has maintained a relatively stable municipal tax rate since 2010. A slight increase was put in place for fire services in 2025, and the township eliminated its $10 per capita head tax in 2024.

Currently, the average homeowner with a property assessed at $20,000 pays $499.60 annually in township real estate taxes, or approximately $41.63 per month.

Bristol Township taxpayers have one of the highest millage rates in the county, with most of their tax bill coming from the Bristol Township School District, which is not operated by the township government.

Officials made clear before Thursday’s vote that the analysis was for research purposes.

“This is an analysis. This is only an analysis,” Mazur said, adding that the goal is to find “the sweet spot for our residents.”