Philadelphia's wage tax — the levy that applies to salaries, wages and most compensation earned in the city, at one rate for residents and a lower one for commuters — priced for both halves of calendar 2026.
Residents owe the tax on wages earned anywhere; non-residents owe it on wages earned inside the city. Philadelphia sits outside Pennsylvania's Act 32 EIT system — residents instead get a small credit against the state tax (not modelled here).
At 3.74% — about $108 per biweekly paycheck. Wages after wage tax: $72,195 (before state and federal layers).
Salaries, wages, commissions and most other compensation. The companion city levies — the Net Profits Tax for the self-employed (3.735%/3.425% on the same fiscal calendar) and the School Income Tax on investment income of residents (3.735%) — share the rate schedule; this calculator covers the wage tax itself.
The non-resident rate on your Philadelphia-earned wages. Your home municipality may also levy a Pennsylvania EIT, but wages taxed by Philadelphia are exempt from that local EIT.
Philadelphia sets the wage tax by fiscal year (July–June) and has been stepping it down annually. Calendar 2026 therefore spans two rate schedules; the calculator prices each half separately.
The city runs an income-based refund/forgiveness programme for low-wage workers (applied for, not withheld automatically) — the calculator shows the statutory tax before any such relief.
Philadelphia wage tax for 2026: residents pay 3.74% and non-residents working in the city 3.43% (Jan–Jun; 3.735%/3.425% from July). On $75,000 a resident owes $2,805. From the City of Philadelphia's official rate schedule.
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Philadelphia’s wage tax on wages earned in the city: resident and non-resident rates for both halves of calendar 2026.
A resident on $75,000 owes $2,805 in the Jan–Jun period; a non-resident $2,573.
Philadelphia sits outside Pennsylvania’s EIT system — city wages are exempt from local EIT elsewhere.
The non-resident rate on city-earned wages.
The city sets rates by fiscal year starting 1 July and has been reducing them annually.
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