Quick answer: a typical Philadelphia paystub has five tax lines: federal income tax, Social Security (6.2%), Medicare (1.45%), Pennsylvania income tax (3.07%) and the Philadelphia wage tax (3.735% for residents from July 1, 2026). You may also see a small Local Services Tax and Pennsylvania unemployment tax. You won't see a local earned income tax (EIT), because Philadelphia's wage tax replaces it.
A real example, line by line
A single Philadelphia resident earning $65,000, paid every two weeks, with no 401(k):
| Paystub line |
Rate |
Per paycheck |
Per year |
| Gross pay |
|
$2,500.00 |
$65,000 |
| Federal income tax (FIT, FED W/H) |
Brackets |
about $216 |
about $5,620 |
| Social Security (OASDI, FICA-SS) |
6.2% |
$155.00 |
$4,030 |
| Medicare (MED, FICA-MED) |
1.45% |
$36.25 |
$943 |
| Pennsylvania income tax (PA SIT) |
3.07% |
$76.75 |
$1,996 |
| Philadelphia wage tax (PHL CITY, LOCAL) |
3.735% |
$93.38 |
$2,428 |
| Take-home |
|
$1,922.47 |
$49,984 |
Labels vary between payroll systems, so match each line by its rate.
The lines explained
Federal income tax depends on your W-4 and the 2026 brackets. It's the only line that changes much with your filing status and deductions.
Social Security and Medicare are fixed percentages. Social Security stops once your wages for the year reach $184,500. Medicare never stops, and an extra 0.9% is withheld on wages above $200,000.
Pennsylvania income tax is a flat 3.07%. Unlike federal tax, Pennsylvania doesn't let 401(k) contributions reduce it.
Philadelphia wage tax is 3.735% for residents and 3.425% for non-residents on pay dates from July 1, 2026. It also applies to 401(k) contributions. The rate drops slightly every July 1, so the amount changes mid-year.
Lines you might also see
Local Services Tax (LST): a flat charge, often around $2 per biweekly paycheck, up to $52 a year, in many Pennsylvania municipalities. Philadelphia employers may not show it.
PA SUI (unemployment): a very small employee share of Pennsylvania unemployment insurance, typically a few cents to a couple of dollars per paycheck.
Why there's no local EIT
Almost everywhere else in Pennsylvania, workers pay a local earned income tax of around 1% to 2% to their municipality and school district. Philadelphia sits outside that system: its wage tax does the same job. If you live in the suburbs and work in the city, you'll see Philadelphia wage tax at the non-resident rate, and your home municipality's EIT may also apply. See Pennsylvania local earned income tax explained.
Checking your own paystub
Enter your salary in the Philadelphia wage tax calculator. If your paystub differs by more than a few dollars a paycheck, check your W-4, your residency status with payroll, and whether the new July rate has been applied.
What changes with a 401(k)
Say the same $65,000 resident contributes 5% to a traditional 401(k), $3,250 a year:
| Line |
No 401(k) |
5% 401(k) |
| 401(k) contribution |
$0 |
$3,250 |
| Federal income tax |
about $5,620 |
about $5,230 |
| Social Security and Medicare |
$4,973 |
$4,973 |
| Pennsylvania income tax |
$1,996 |
$1,996 |
| Philadelphia wage tax |
$2,428 |
$2,428 |
Only the federal line falls, by about $390. Pennsylvania and Philadelphia both tax 401(k) contributions, and Social Security and Medicare apply to them too. That's very different from most states, where a 401(k) also cuts state tax.
What changes for a non-resident
A suburban resident working for a Philadelphia employer sees the wage tax at the non-resident rate (3.425% from July 1, 2026). They may also see a local EIT line for their own municipality, plus a Local Services Tax of up to $52 a year, which works out to $2 per biweekly paycheck at the maximum. The non-resident wage tax and the home EIT are separate taxes from separate governments.
Paystub red flags
- Resident rate for a non-resident, or the other way round: payroll may have an old address.
- No wage tax line for a Philadelphia resident: if your employer is outside the city, you'll owe the earnings tax yourself and may need quarterly payments.
- The old rate after July 1: payroll should switch on the first pay date on or after July 1.
- PA tax lower than 3.07% of gross pay: check whether something was treated as pre-tax that Pennsylvania actually taxes.
Year-end check
On your final paystub of the year, divide the Philadelphia wage tax YTD by your local wages YTD. For a full year in 2026, a resident should land between 3.735% and 3.74%, and a non-resident with all work taxable between 3.425% and 3.43%.
Matching your paystub to your W-2
At year end, your W-2 shows the same taxes in fixed boxes. Box 1 is federal wages, which are lower than gross pay if you contribute to a 401(k). Box 16 is Pennsylvania wages, which include 401(k) contributions. Box 18 is local wages for Philadelphia, and box 19 is the wage tax withheld. Box 20 names the locality. If box 19 divided by box 18 isn't close to the right rate, ask payroll why before you file.