This calculator is part of our State & Local Tax Calculators hub, covering all 50 states plus D.C. with verified 2026 rates.
Enter your salary to see exactly how much you take home after Philadelphia's wage tax (3.735% resident / 3.425% non-resident), PA state tax, FICA, and federal tax.
See exactly how much Philadelphia's 3.735% resident wage tax costs you at different salary levels. These examples assume full-year residency and do not include federal or FICA taxes (use the calculator above for your full breakdown).
| Annual Salary | Philly Tax (3.735%) | PA Tax (3.07%) | Combined (Philly+PA) | Est. Net Take-Home |
|---|---|---|---|---|
| $50,000 | $1,867.50 | $1,535.00 | $3,402.50 | $46,597.50 |
| $75,000 | $2,801.25 | $2,302.50 | $5,103.75 | $69,896.25 |
| $100,000 | $3,735.00 | $3,070.00 | $6,805.00 | $93,195.00 |
| $150,000 | $5,602.50 | $4,605.00 | $10,207.50 | $139,792.50 |
| $200,000 | $7,470.00 | $6,140.00 | $13,610.00 | $186,390.00 |
* Federal and FICA taxes not included in this table. Use the calculator above for your complete tax breakdown.
Non-residents may reduce their Philly wage tax only for days their employer formally requires them to work outside the city. Voluntarily working from home at your own request — even with your employer's permission — does not exempt those days under Philadelphia's "requirement of employment" standard. Use the calculator above and select your residency status to see the non-resident rate.
Philadelphia's wage tax funds essential city services — police, fire, schools, and infrastructure. Unlike most U.S. cities that rely heavily on property taxes, Philadelphia derives a significant portion of its revenue from the wages of people who live or work in the city. This structure means that whether you work from a Center City office, a hospital in University City, or remotely from your home in Fishtown, you contribute to the city's operating budget.
The wage tax is a flat percentage of your gross wages — not a progressive tax like federal income tax. Every dollar you earn is taxed at the same rate. This makes the calculation straightforward once you know your rate.
Philadelphia has two distinct wage tax rates:
The rates are reducing over time as part of a multi-year plan legislated by Philadelphia City Council in June 2025, with reductions scheduled through 2029. The resident rate has dropped from 3.8809% in July 2018 to 3.735% in July 2026.
Your residency determines your rate — not where your employer is located. If you live in Philadelphia, you pay the resident rate of 3.735%, even if your company is based in another state or country.
The wage tax is the single largest source of tax revenue for the City of Philadelphia. Funds support:
This is why the tax applies even if you work remotely as a resident — you still benefit from city services and the economic ecosystem that supports your quality of life.
As of July 1, 2026, the Philadelphia wage tax rates are:
| Status | Rate (July 1, 2026 – present) | Rate (Jan 1 – June 30, 2026) | Who it applies to |
|---|---|---|---|
| Resident | 3.735% | 3.74% | Anyone who lives in Philadelphia |
| Non-Resident | 3.425% | 3.43% | Anyone who works in Philly but lives elsewhere |
These rates represent a continued downward trend in Philadelphia's wage tax, governed by a five-year rate-cut plan approved by Philadelphia City Council in June 2025. The resident rate has dropped from 3.8809% in July 2018 to 3.735% effective July 2026, with further reductions legislated through 2029, when the resident rate is projected to reach 3.70% and the non-resident rate 3.39%.
If you live in Philadelphia but work remotely for a company based elsewhere, you still pay the resident rate of 3.735%. Your employer may not withhold Philly tax automatically — if they don't, you need to file directly with the Philadelphia Department of Revenue using the Earnings Tax return.
Philadelphia residents pay both the city wage tax and Pennsylvania's 3.07% flat income tax. The combined rate is:
This combined rate is deducted from your gross wages before you see your take-home pay. Unlike federal income tax, which is progressive and varies by income level, these rates are flat — every dollar you earn is taxed at the same percentage.
Let's look at concrete examples. Use the table below to see the annual Philly wage tax cost at different salary levels:
| Annual Salary | Philly Tax (Resident 3.735%) | Philly Tax (Non-Resident 3.425%) | Difference |
|---|---|---|---|
| $50,000 | $1,867.50 | $1,712.50 | $155.00 |
| $75,000 | $2,801.25 | $2,568.75 | $232.50 |
| $100,000 | $3,735.00 | $3,425.00 | $310.00 |
| $150,000 | $5,602.50 | $5,137.50 | $465.00 |
| $200,000 | $7,470.00 | $6,850.00 | $620.00 |
* Rates effective July 1, 2026. The resident rate is 3.735% and non-resident rate is 3.425%.
The difference between the resident and non-resident rate is 0.31 percentage points. For a $100,000 salary, that's a $310 annual difference. The gap widens as your salary increases, so higher earners see a larger dollar impact from their residency status.
The Philly wage tax is just one piece of your tax puzzle. To see your complete take-home pay, you need to account for:
Use the calculator at the top of this page to see your exact total tax burden and take-home pay, with all taxes included.
Pre-tax 401(k) contributions reduce your federal taxable income but do not reduce your Philadelphia wage tax or Pennsylvania state tax. Pennsylvania taxes your gross wages before 401(k) deductions. This is a common misunderstanding — and it means your 401(k) contributions don't lower your Philly or PA tax bill.
If you need to calculate gross pay from a target take-home amount, try our Gross-Up Paycheck Calculator (Net to Gross).
Most Philadelphia residents pay the full 3.735% wage tax rate. But if your income is below certain thresholds, you may qualify for PA Tax Forgiveness — reducing your effective Philly wage tax rate to just 1.5%. This is a refund you claim on your Pennsylvania state tax return.
This is the single biggest missed opportunity on many competitor pages. Low-income Philly residents can get refunded down to a 1.5% rate. You might be paying more than you owe.
The refund comes through PA Schedule SP (Tax Forgiveness) — Pennsylvania's program for low-income taxpayers. When you file your PA state tax return, you fill out Schedule SP to determine if you qualify. If approved, your Philadelphia wage tax liability is capped at 1.5% of your taxable income, and the difference between what you paid (3.735%) and what you owe (1.5%) is refunded to you.
Here's an example:
| Item | Amount |
|---|---|
| Annual gross income | $25,000 |
| Philly wage tax paid (3.735%) | $933.75 |
| Refunded rate (1.5%) | $375.00 |
| Potential refund | $558.75 |
* Example assumes a married couple filing jointly with two qualifying dependents ($13,000 + 2 x $9,500 = $32,000 threshold). Eligibility depends on filing status, dependents, and total eligibility income (taxable + nontaxable).
PA Tax Forgiveness eligibility depends on your filing status and income. The thresholds are adjusted annually. Approximate 2026 thresholds:
| Filing Status | Approximate Threshold |
|---|---|
| Single / Unmarried | $6,500 or less (100% forgiveness) |
| Married filing jointly | $13,000 or less (100% forgiveness) |
| Each qualifying dependent | +$9,500 added to threshold |
* 100% forgiveness thresholds shown; partial forgiveness (10%-90%) available at higher incomes. Check the latest PA Schedule SP instructions for exact thresholds.
If you live outside Philadelphia but work in the city, you pay the 3.425% non-resident rate. However, Philadelphia applies a "requirement of employment" standard: you are only exempt from the wage tax on days when your employer requires you to work outside the city.
Philadelphia's Department of Revenue explicitly states: a non-resident who works from home at their own request (for personal convenience) still owes the full non-resident wage tax on those days — even if the employer permits it. Only days on which the employer formally requires the work to be performed outside Philadelphia qualify for exemption. If you chose to work from home voluntarily, those days are not exempt.
Example of a qualifying situation: You live in the suburbs and your Philadelphia employer requires you to travel to a client site in New Jersey on Tuesdays. Those employer-mandated days outside Philadelphia are exempt. The remaining days you work in Philadelphia are subject to the 3.425% rate.
Example of a non-qualifying situation: You live in the suburbs and your employer lets you work from home on Thursdays and Fridays because you prefer it. Even though you are physically outside Philadelphia, those days are not exempt — the arrangement is for your personal convenience, not a formal employer requirement.
Pennsylvania residents with income below certain thresholds can file their state taxes for free through the PA Department of Revenue's online filing system. The Philadelphia Department of Revenue also offers online filing through the Philadelphia Tax Center.
Note: This is not tax advice. Consult a qualified tax professional or the Philadelphia Department of Revenue for personalized guidance on refund eligibility.
Philadelphia's wage tax has been on a steady downward trend. The five-year reduction plan, legislated by City Council in June 2025, sets rates through 2029 for both residents and non-residents. Here is the accurate rate history and legislated future schedule:
| Effective Period | Resident Rate | Non-Resident Rate | Notes |
|---|---|---|---|
| Jul 1, 2017 – Jun 30, 2018 | 3.8907% | 3.4654% | — |
| Jul 1, 2018 – Jun 30, 2019 | 3.8809% | 3.4567% | -0.0098% |
| Jul 1, 2019 – Jun 30, 2020 | 3.8712% | 3.4481% | -0.0097% |
| Jul 1, 2020 – Jun 30, 2021 | 3.8398% | 3.4481% | -0.0314% (res only) |
| Jul 1, 2021 – Jun 30, 2022 | 3.8398% | 3.4481% | No change |
| Jul 1, 2022 – Jun 30, 2023 | 3.79% | 3.44% | -0.0498% / -0.0081% |
| Jul 1, 2023 – Jun 30, 2024 | 3.75% | 3.44% | -0.04% (res only) |
| Jul 1, 2024 – Jun 30, 2025 | 3.75% | 3.44% | No change |
| Jul 1, 2025 – Jun 30, 2026 | 3.74% | 3.43% | -0.01% / -0.01% |
| Jul 1, 2026 – Jun 30, 2027 | 3.735% | 3.425% | Current rates ✅ |
| Jul 1, 2027 – Jun 30, 2028 (legislated) | 3.73% | 3.42% | Per City Council ordinance |
| Jul 1, 2028 – Jun 30, 2029 (legislated) | 3.72% | 3.41% | Per City Council ordinance |
| Jul 1, 2029 and thereafter (legislated) | 3.70% | 3.39% | Per City Council ordinance |
Source: Philadelphia Department of Revenue historic rate schedule (revised April 2025) and City Council Bill No. 250195 (signed June 13, 2025), which legislated the five-year rate-reduction schedule through fiscal year 2030.
Philadelphia wage tax rates are adjusted July 1 each year. Always verify the current rate directly with the Philadelphia Department of Revenue or at phila.gov before making payroll or financial decisions. This page is updated for the July 1, 2026 rates.
The reductions are driven by several factors:
Philadelphia is one of the few U.S. cities that taxes wages at the local level. Here's how Philly's rates compare to other major cities:
| City | Local Income Tax Rate | State Tax Rate | Combined | Notes |
|---|---|---|---|---|
| Philadelphia | 3.735% | 3.07% | 6.805% | Resident rate; city wage tax |
| New York City | 3.078% – 3.876% | 4.00% – 10.90% | ~7.08% – 14.78% | Progressive local tax |
| Pittsburgh | 3.0% | 3.07% | 6.07% | Local earned income tax |
| Scranton, PA | 3.4% | 3.07% | 6.47% | Local earned income tax |
| Chicago | 0% | 4.95% | 4.95% | No local wage tax |
| Washington, DC | 0% | 4.00% – 10.75% | 4.00% – 10.75% | No local wage tax |
| Boston | 0% | 5.00% | 5.00% | No local wage tax |
| San Francisco | 0% | 1.00% – 13.30% | 1.00% – 13.30% | No local wage tax |
| Austin, TX | 0% | 0% | 0% | No state or local income tax |
Philadelphia's combined Philly + PA tax rate of 6.805% is competitive with other major East Coast cities. New York City residents pay higher local and state taxes (up to 14.78% combined), while Chicago residents pay no local wage tax but higher state taxes. The comparison is not apples-to-apples — cities fund services differently, with some relying more on property taxes or sales taxes.
If you move from Philadelphia to the nearby suburbs, your Philly wage tax drops to $0 — but you may pay higher property taxes, commute costs, and other expenses. For a $100,000 salary, moving from Philly to a suburb could save you $3,735 per year in city wage tax. However, you'd need to factor in:
If you work in Pennsylvania outside Philadelphia, you may still owe local Earned Income Tax (EIT) to your municipality or school district. See our PA Local Wage Tax Calculator for rates by city.
If you're comparing Philly to working in New York City, our NYC Local Income Tax Calculator shows the combined state + city tax burden for NYC residents and non-residents.
Use the calculator above to see your exact take-home pay as a Philly resident. Then compare it to what you'd earn without the city wage tax — the difference is your "Philly tax premium."
Most calculators assume a simple scenario: full-year residency, standard salary, no bonuses. Real life is more complicated. Here's how Philadelphia's wage tax applies to common edge cases.
If you live in Philadelphia but work remotely for a company based outside the city — or even outside Pennsylvania — you still pay the resident rate of 3.735%. Your employer may not withhold Philly tax automatically. If they don't, you need to file directly with the Philadelphia Department of Revenue using the Earnings Tax Return.
Your residence determines your tax rate, not your employer's location. Living in Philadelphia means paying the resident rate — even if you work for a company in California, Texas, or another country.
What to do: Check your pay stub. If your employer isn't withholding Philly wage tax, set aside approximately 3.735% of your gross wages for quarterly payments to the Philadelphia Department of Revenue.
If you live outside Philadelphia but your employer is in the city, you pay the non-resident rate of 3.425% — but Philadelphia applies the "requirement of employment" standard to determine which days are taxable.
Taxable days: Days you work in Philadelphia, plus days you work outside Philadelphia for your own personal reasons (even if your employer permits remote work).
Non-taxable days: Days your employer formally requires you to perform work outside Philadelphia (e.g., at a client site, a required field assignment, or employer-mandated work-from-home).
If you work from home on Thursdays because you prefer it and your employer accommodates that preference, those days are not exempt. The Philadelphia Department of Revenue treats those as days worked "at the convenience of the employee" — you still owe the non-resident rate. Only days you are required by your employer to work outside the city are exempt.
What to do: If your employer requires you to work outside Philadelphia on specific days, obtain a signed letter on company letterhead confirming the requirement, maintain a log of required outside-city work days, and file a refund petition with the Philadelphia Department of Revenue after year-end.
If you move to or from Philadelphia during the tax year, your Philly wage tax applies only for the portion of the year you lived in the city.
Example: You move to Philadelphia on July 1. For January through June, you owe no Philly resident wage tax (assuming you lived outside the city). From July 1 onward, you owe the resident rate of 3.735% on your wages earned during those months.
What to do: When filing your Pennsylvania state tax return, report the date you moved. Your Philly wage tax liability will be prorated based on the number of days you lived in the city. Keep documentation (lease, utility bills, driver's license) to prove your move date.
Yes — bonuses, commissions, and other supplemental wages are fully subject to the Philadelphia wage tax. Unlike federal tax, which may treat bonuses differently, Philly's wage tax applies to all gross wages, regardless of how they're classified.
What to do: If you receive a bonus, use the calculator above and enter your total gross wages (base salary + bonus) to see the full Philly tax impact. Your employer should withhold Philly tax from your bonus payment.
Self-employed Philly residents owe the wage tax on their net earnings from self-employment. The rate is the same as for employees — 3.735% for residents, 3.425% for non-residents.
What to do: File the Earnings Tax Return with the Philadelphia Department of Revenue. You'll need to make quarterly estimated payments if you expect to owe more than $1,000 for the year. If your business is registered as an S-corp or LLC, consult a tax professional to ensure compliance.
For full self-employment tax estimates including federal SE tax, quarterly payments, and take-home pay, see our 1099 Tax Calculator.
The Philly wage tax applies to net earnings from self-employment — not gross revenue. You can deduct business expenses before calculating the tax. Keep detailed records of all business expenses.
If you have two jobs, your Philly wage tax applies to all wages from all jobs — not just your primary employer. Each employer should withhold Philly tax based on your residency status.
What to do: Provide both employers with the correct residency information. If you have multiple W-2s, add up all wages and use the calculator above with your total gross income. Note that for Social Security (FICA), the 2026 wage base cap of $184,500 applies in aggregate — if you overpay due to multiple employers, you can claim a credit on your federal tax return.
Employers make mistakes. Here's a simple checklist to verify your employer is withholding the correct amount of Philadelphia wage tax.
For questions, contact the Philadelphia Department of Revenue: (215) 686-6600 or visit phila.gov.
The Philadelphia resident wage tax rate is 3.735% effective July 1, 2026. From January 1 to June 30, 2026, the rate was 3.74%. The rate applies to all gross wages earned by Philadelphia residents, regardless of where their employer is located.
The Philadelphia non-resident wage tax rate is 3.425% effective July 1, 2026. From January 1 to June 30, 2026, the rate was 3.43%. This applies to people who work in Philadelphia but live outside the city.
No. The Philadelphia Wage Tax is in addition to Pennsylvania's 3.07% state income tax. Residents pay both, for a combined Philly + PA rate of 6.805% (3.735% + 3.07%). This combined rate is deducted from your gross wages before you see your take-home pay.
They are the same tax, collected in two ways:
The rate is identical for both: 3.735% for residents, 3.425% for non-residents.
Only if the employer required the work to be performed outside Philadelphia. Philadelphia applies a "requirement of employment" standard: a non-resident is exempt from the wage tax on days their employer requires them to work outside the city. Days a non-resident chooses to work from home for personal convenience — even with employer permission — are still subject to the non-resident wage tax. To claim a refund for qualifying days, you need a signed employer letter on company letterhead and must file a refund petition with the Philadelphia Department of Revenue.
Low-income residents approved for PA Tax Forgiveness (PA Schedule SP) can pay only a 1.5% Philly Wage Tax rate instead of 3.735%. Eligibility thresholds are approximately:
Check the latest PA Schedule SP instructions for exact thresholds.
Your Philly wage tax applies only for the portion of the year you lived in the city. If you move to Philly on July 1, you owe the resident rate from July 1 through December 31. If you move out of Philly on July 1, you owe the resident rate from January 1 through June 30. Your liability is prorated based on the number of days you lived in the city.
Yes. Bonuses, commissions, and other supplemental wages are fully subject to the Philadelphia wage tax. Unlike federal tax, which may treat bonuses differently, Philly's wage tax applies to all gross wages, regardless of how they're classified. Your employer should withhold Philly tax from bonus payments.
No. Pre-tax 401(k) contributions reduce your federal taxable income but do not reduce your Philadelphia wage tax or Pennsylvania state tax. Pennsylvania taxes your gross wages before 401(k) deductions. The Philly wage tax is a flat percentage of your gross wages — 401(k) contributions do not lower it.
The Local Services Tax (LST) is a $52 per year tax paid by employees working in Philadelphia. Employers typically withhold $1 per week or $2 per pay period (bi-weekly). Unlike the wage tax, the LST is a flat fee — not a percentage of income. Most employees in Philadelphia pay this tax automatically through payroll.
Pennsylvania has reciprocity agreements with Indiana, Maryland, New Jersey, Ohio, Virginia, and West Virginia. Under these agreements, you only pay tax to the state where you live. However, reciprocity does NOT apply to the Philadelphia Wage Tax. The wage tax is a city tax, not a state tax. If you live in New Jersey but work in Philadelphia, you still owe the Philadelphia non-resident wage tax (3.425%).
For Philadelphia residents, the combined tax rate is:
This is the percentage deducted from your gross wages for state and local taxes before federal tax and FICA.
* This FAQ provides general information. For personalized tax advice, consult a qualified tax professional or the Philadelphia Department of Revenue.
This calculator provides accurate estimates of your take-home pay after all applicable taxes. Here's how we calculate each component:
This calculator provides estimates for informational purposes only. Tax rates and withholding rules may vary based on individual circumstances. Always consult a qualified tax professional or the Philadelphia Department of Revenue for personalized tax advice.
This calculator uses tax rates verified against the following official sources:
Last updated: August 2026 — reflects rates effective July 1, 2026. Social Security wage base per SSA 2026 announcement ($184,500). Federal brackets per IRS Rev. Proc. 2025-32.