How this calculator works
Philadelphia residents owe the wage tax on all of their pay, wherever they work. Non-residents owe it on pay from a Philadelphia employer, except for days the employer requires them to work outside the city. This is the city’s “requirement of employment” test: working from home for your own convenience does not reduce the tax. The calculator asks what share of your work is taxable in the city.
The rate changes every July 1. Choose the pay-date period you want: the rates in effect from July 1, 2025 (3.74% resident, 3.43% non-resident) or from July 1, 2026 (3.735% and 3.425%).
Pennsylvania’s flat 3.07% income tax is added on top. Pennsylvania and Philadelphia both tax 401(k) contributions, so those don’t reduce state or city tax here, but cafeteria-plan health premiums do.
Federal income tax uses the 2026 brackets and standard deduction ($16,100 single, $32,200 married filing jointly). Social Security is 6.2% of wages up to $184,500, and Medicare is 1.45% of all wages plus 0.9% on wages above $200,000. Traditional 401(k) contributions lower income tax but not Social Security or Medicare; cafeteria-plan health premiums lower both.
Worked example
Single Philadelphia resident earning $65,000, no 401(k), paid every two weeks
- Federal income tax is about $5,620, Social Security $4,030 and Medicare about $943.
- Pennsylvania tax at 3.07% is about $1,996.
- Philadelphia wage tax at 3.735% is about $2,428. A non-resident working fully in the city would pay about $2,226 at 3.425%.
- Take-home pay is about $49,984 a year, or $1,922.47 per paycheck.
Questions people ask
Do I pay Philadelphia wage tax if I work from home?
If you live in Philadelphia, yes: residents owe the tax on all wages, including remote work. If you live outside the city, it depends on why you work from home. Days your employer requires you to work outside Philadelphia are not taxable, and you can request a refund if tax was withheld for them. Working from home by choice does not qualify, so those days stay taxable.
Is the Philadelphia wage tax the same as the earnings tax?
It is the same tax collected two ways. The wage tax is withheld by your employer; the earnings tax is what you file and pay yourself when no wage tax was withheld, for example if a Philadelphia resident works for an out-of-state employer.
Is there a lower rate for low-income workers?
Yes. People who qualify for Pennsylvania tax forgiveness can claim an income-based rate of 1.5% and request a refund of the difference from the city. This calculator uses the standard rates.
Do I also pay a local earned income tax?
No. Philadelphia is outside Pennsylvania’s local earned income tax system; the wage tax takes its place. If you live in a suburb and work in the city, your home municipality’s rules can affect any credit, so check with your local tax collector.
Sources
Last reviewed October 1, 2026