Philadelphia Wage Tax Calculator

Philadelphia residents pay 3.74% on pay dates through June 30, 2026 and 3.735% on pay dates from July 1, 2026. The resident rate applies to all wages, salaries, commissions and other compensation regardless of where the work is performed.

Nonresidents pay 3.43% on pay dates through June 30, 2026 and 3.425% on pay dates from July 1, 2026, but only on compensation for work actually performed inside the city.

It applies the simple average of the two half-year rates, which is accurate when wages are earned evenly across the calendar year. Real withholding is determined pay date by pay date, so a bonus, a raise or an uneven earnings pattern will move the actual figure away from this blended estimate.

Yes in many cases. Because the nonresident rate only reaches work performed in Philadelphia, an employee whose employer required them to work outside the city can petition the Department of Revenue for a refund of the tax withheld on those days. This calculator does not model refund petitions — enter only the compensation for in-city work.

They are the same tax collected two ways. Wage Tax is withheld and remitted by an employer. Earnings Tax is filed directly by the individual when an employer does not withhold Philadelphia tax — common for residents working for an out-of-state employer. The rates are identical.

No. The Philadelphia Wage Tax is in addition to Pennsylvania personal income tax and federal income tax. Philadelphia also sits outside the Act 32 system used for local earned income tax everywhere else in Pennsylvania, so its rate is not returned by the DCED address lookup.