Philadelphia Wage Tax (2026)
Philadelphia charges 3.735% on residents and 3.425% on non-residents who work in the city, effective July 1, 2026. Unlike Maryland's county tax or New York City's, it is charged on gross compensation with no deduction — so at $100,000 a resident owes $3,735 and the headline rate is very nearly the effective rate.
What it costs at each income
| Income | PA state tax | Wage Tax (resident) | Wage Tax (non-resident) | Combined resident | Combined effective |
|---|---|---|---|---|---|
| $50,000 | $1,535 | $1,868 | $1,713 | $3,403 | 6.80% |
| $75,000 | $2,303 | $2,801 | $2,569 | $5,104 | 6.80% |
| $100,000 | $3,070 | $3,735 | $3,425 | $6,805 | 6.80% |
| $150,000 | $4,605 | $5,603 | $5,138 | $10,208 | 6.80% |
| $250,000 | $7,675 | $9,338 | $8,563 | $17,013 | 6.80% |
| $500,000 | $15,350 | $18,675 | $17,125 | $34,025 | 6.80% |
Wage Tax is applied to gross compensation. The Pennsylvania column is the state flat tax on the same income for a single filer. Philadelphia residents also pay the Pennsylvania state flat rate on top, and Pennsylvania does not tax retirement income — so a retired Philadelphian with no wages pays neither.
The rate changes every July, not every January
Philadelphia sets its Wage Tax on a fiscal year, so the rate changes on 1 July. A calendar year almost always spans two different rates, which is why a payroll figure from January rarely matches one from August.
| Effective from | Resident | Non-resident |
|---|---|---|
| July 1, 2026 | 3.735% | 3.425% |
| July 1, 2025 | 3.74% | 3.43% |
| July 1, 2024 | 3.75% | 3.44% |
| July 1, 2023 | 3.75% | 3.44% |
| July 1, 2022 | 3.79% | 3.44% |
Wage Tax or Earnings Tax?
The same tax is called the Wage Tax when an employer withholds it and the Earnings Tax when the individual pays it directly because their employer does not withhold.
Both are the same tax at the same rate. The distinction is administrative: if your employer withholds it, it is the Wage Tax; if you have to pay it yourself because they do not, it is the Earnings Tax.
What this does not include
- Filers approved under Pennsylvania's tax forgiveness programme can claim an income-based refund that reduces the effective rate to 1.5%. That relief is described but not computed here.
- The Philadelphia School Income Tax on unearned income of residents is a separate tax and is not modelled.
- Non-residents are exempt for days worked outside the city; apportionment is not modelled.
See how Pennsylvania local taxes work more broadly, the Pennsylvania state tax page, or the local income tax hub.