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Philadelphia Wage Tax

Philadelphia wage tax paycheck guide

Philadelphia Wage Tax applies to resident wages and nonresident wages earned for work in Philadelphia. The city publishes separate resident and nonresident rates.

Resident Wage Tax rate effective July 1, 2025

3.74%

$2,805 per year on $75K at the resident rate

Example salary$75,000
Example local rate3.740%
Annual local-tax layer$2,805
Biweekly impact$108
Last updated: March 2026Reviewed by CalculWise editorial team
Methodology: Local tax pages use official agency sources where available and simple salary examples when local rules vary by residency, county, work location, or payroll setup.

What to check before using this local tax estimate

Local wage tax rules depend on details that a general calculator cannot always know: where you live, where you physically work, whether your employer withholds locally, and whether a credit, refund, or reciprocity rule applies.

  • Resident Wage Tax: 3.74% effective July 1, 2025.
  • Nonresident Wage Tax: 3.43% effective July 1, 2025.
  • Income-based refunds, remote-work refunds, and employer withholding details can change the final result.

How to use this with the paycheck calculator

Start with the main paycheck calculator to estimate federal income tax, FICA, and the available state tax model. Then add the local amount as a manual annual deduction so the final paycheck reflects city, county, school district, or occupational tax.

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Frequently asked questions

Who pays Philadelphia Wage Tax?

Philadelphia residents owe it on wages regardless of where they work. Nonresidents can owe it for work performed in Philadelphia.

How much is Philadelphia Wage Tax on $75,000?

At the 3.74% resident rate, a $75,000 salary produces about $2,805 of annual city wage tax before any refund or special rule.

Does CalculWise include Philadelphia Wage Tax automatically?

No. Add it as a local or post-tax adjustment when using the paycheck calculator.