How much is Philadelphia city wage tax?

Question

i guess it depends on how much you get paid and all but is there like an average so i can an idea of how much i would be paying?

Answer 1

The Phila wage tax is levied on earned income, wages and salaries----via payroll deduction. There is no minimum exemption level---you pay form dollar $1 earned. It does not apply to unearned income (although there IS a small school district income tax in the city,too). There are 2 rates---one if you are a Phila resident (regardless of WHERE you work) and a lower rate on non-residents who work in Phila. Now they are about 4.6% for residents and 3.9% for non-residents.....and scheduled to decrease by tiny amounts over the next 5 years. The taxes paid are deductible against your federal income tax, so the net rate you pay is really a function of whether you itemize and your federal marginal tax bracket.