Philadelphia Income Tax Calculator
Calculate your take-home pay in Philadelphia, Pennsylvania including the 3.75% local income tax on top of Pennsylvania's 3.07% state rate.
How Philadelphia's 3.75% Tax Hits at Different Salaries
| Salary | City Tax | Take-Home (with city tax) | Take-Home (without) | City Tax Cost/Month |
|---|---|---|---|---|
| $50,000 | $1,875 | $38,945 | $40,820 | $156 |
| $75,000 | $2,813 | $56,423 | $59,235 | $234 |
| $100,000 | $3,750 | $72,305 | $76,055 | $313 |
| $125,000 | $4,688 | $88,139 | $92,826 | $391 |
| $150,000 | $5,625 | $103,521 | $109,146 | $469 |
| $200,000 | $7,500 | $135,247 | $142,747 | $625 |
Philadelphia Local Income Tax: What You Need to Know
Philadelphia's wage tax is the highest local income tax of any major US city at approximately 3.75% for residents. Unlike most local taxes, it also applies to non-residents working in the city at 3.44%. The rate has been declining by roughly 0.1% per year as part of a long-term reduction plan.
The wage tax applies to all earned income — wages, salaries, commissions, and net self-employment profits. It does not apply to investment income, pensions, or Social Security. Combined with Pennsylvania's flat 3.07% state income tax, Philadelphia residents face a combined state-plus-local rate of nearly 6.8%.
Many employers in the Philadelphia suburbs don't withhold the city wage tax, making it a significant factor in choosing where to work. Moving from Philadelphia to a nearby suburb like King of Prussia or Cherry Hill, NJ can eliminate the city tax entirely.
The 3.75% local tax is applied on top of Pennsylvania's 3.07% state income tax and federal income tax. On a $100,000 salary, Philadelphia's local tax costs approximately $3,750/year — that's $313/month or $144 per biweekly paycheck.
This tax applies to both residents and non-residents earning income in Philadelphia. Even if you commute from outside the city, you owe the local tax on wages earned within Philadelphia.
Other Cities with Local Tax in Pennsylvania
Frequently Asked Questions
Philadelphia charges a 3.75% local income tax. On a $100,000 salary, this costs approximately $3,750/year. This tax applies to both residents and non-residents earning income in the city.
Partially. Philadelphia taxes non-residents on income earned within the city at 3.75%. You'd need to both live and work outside the city to avoid it entirely.
Including Pennsylvania's 3.07% state rate, Philadelphia's 3.75% local rate, and federal taxes, a $100K earner pays an effective rate of approximately 27.7%.
Yes, local income taxes are deductible as part of your state and local tax (SALT) deduction if you itemize. However, the SALT deduction is capped at $10,000 ($5,000 for married filing separately), which limits the benefit for many taxpayers.