What is the EIT?

EIT stands for Earned Income Tax. EIT is a tax on individuals who earn income as an employee, such as wages, salaries, commissions and tips. State law gives municipalities and school districts the legal authority to levy a tax on individual Gross earned income. EIT is usually collected through payroll deductions. Self-employed individuals pay their own EIT. The amount of tax is based on where the individual lives. Usually, it is 1% of the gross wage.

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