Bristol Twp. Explores 1% Earned Income Tax Proposal

Bristol Township officials will look at an increase to the municipal Earned Income Tax (EIT) for 2027.

The township council will hear a proposal to raise the EIT from 0.5 percent to 1 percent, according to details posted on social media ahead of an upcoming public presentation.

The proposed 1 percent rate would bring Bristol Township in line with the majority of municipalities in Bucks County.

Falls Township enacted an EIT in 2023, Yardley Borough recently voted to approve one, and Middletown Township adjusted its rate from 0.5 percent to 1 percent in its 2026 budget. Nearby, Bristol Borough and Lower Makefield Township currently do not levy an EIT.

The EIT applies strictly to earned income, including salaries, wages, tips, and bonuses. It does not apply to non-earned income sources such as Social Security, pensions, or retirement benefits, officials said.

Under the plan released by the municipality, approximately 70 percent of township residents would experience no increase in their overall tax burden.

Residents who work outside Bristol Township already pay an earned income tax of at least 1 percent to other jurisdictions — or 3.42 percent if employed in Philadelphia — and would incur no additional EIT.

If council approves the proposed increase, the full 1 percent tax revenue collected by other municipalities from those out-of-municipality workers would be redirected to Bristol Township’s coffers.

The redirected funds, according to the township, would support local municipal operations and services, including police and fire rescue, road repairs, snow removal, infrastructure updates, and park maintenance.

For the remaining 30 percent of residents who both live and work within Bristol Township, officials are studying a millage reduction on municipal property taxes to offset any EIT increase. The township is also considering EIT waivers for income-eligible residents, and retired senior homeowners could see a net reduction in their local property taxes.

The potential tax restructuring follows a study commissioned by the township earlier this year.

“Our goal is if we do increase the EIT to reduce the millage,” Council President Craig Bowen said in the spring. “Hence, the professional analysis.”

Working with an annual budget of $76.3 million, Bristol Township has kept its municipal tax rate relatively stable since 2010. The township eliminated its $10 per capita head tax in 2024 and implemented a minor tax adjustment for fire services in 2025.

Officials shared in the social media post that the township is in a stable financial position, but growing budget gaps driven by rising operating costs and community requirements led to the idea of an EIT increase.

An average homeowner with a property assessed at $20,000 pays $499.60 annually in township real estate taxes, which translates to roughly $41.63 per month.

Bristol Township property owners face among the highest total millage rates in Bucks County, but the vast majority of those property tax bills fund the Bristol Township School District. The school district is separate from the municipal government.

Township officials will deliver a formal public presentation on the proposed EIT modifications during the Bristol Township Council meeting on Thursday, Oct. 15, at 7 p.m. at the municipal building at 2501 Bath Road.

Residents may submit questions and comments on Facebook prior to the session or deliver public comments in person during the meeting.