Calculate your take-home pay in Philadelphia, Pennsylvania including the 3.75% local income tax on top of Pennsylvania's 3.07% state rate.
| 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'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.
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.