Philadelphia rules
How taxes hit a Philadelphia paycheck in 2026 — including the City Wage Tax
Philadelphia is one of the few major U.S. cities with its own wage tax. A Philadelphia resident's pay stub carries two flat income taxes — Pennsylvania's and the city's — on top of federal taxes. Both apply to gross wages with essentially no deductions, which makes Philadelphia's effective local burden high even though each rate looks modest.
Pennsylvania's flat 3.07%
Pennsylvania taxes compensation at a single flat rate of 3.07% with no state standard deduction — so every dollar of wages is taxed from the first dollar.
The Philadelphia City Wage Tax: 3.74%
On top of the state tax, Philadelphia charges a City Wage Tax of 3.74% on residents' gross wages (reduced from 3.75% effective July 1, 2025). Non-residents who work in the city pay a slightly lower rate. Like the state tax, it applies to gross wages with no deductions.
The commuter angle
Because the City Wage Tax follows where you work (and, for residents, where you live), many workers compare living or working just outside city limits. Run the suburbs through the statewide Pennsylvania calculator to see the difference.
Compare Philadelphia with other places
Run your salary through statewide Pennsylvania, city-tax peer New York City, or no-tax Houston.
Questions
Philadelphia salary calculator FAQ
Does Philadelphia have a city wage tax?
Yes. Philadelphia levies a City Wage Tax on every dollar of wages — 3.74% for residents (reduced from 3.75% in July 2025) and a slightly lower rate for non-residents who work in the city. It is charged on gross wages with no deductions, on top of Pennsylvania's 3.07% state tax.
How much is taken out of a paycheck in Philadelphia?
A Philadelphia resident's paycheck is reduced by federal income tax, 6.2% Social Security, 1.45% Medicare, Pennsylvania's 3.07% flat tax AND the 3.74% Philadelphia City Wage Tax. On a $70,000 single salary, total deductions are roughly 27% to 29%.
Do non-residents pay the Philadelphia wage tax?
Yes, but at a slightly lower rate. Anyone who works inside Philadelphia owes the City Wage Tax on wages earned there, even if they live in the suburbs. This calculator uses the resident rate of 3.74%.
What is the take-home pay on $100,000 in Philadelphia?
A single Philadelphia resident earning $100,000 takes home roughly $69,000 to $70,000 a year after federal tax, FICA, Pennsylvania tax and the city wage tax. Use the calculator above for your exact figure.
- Sources: City of Philadelphia Dept. of Revenue (City Wage Tax 3.74%) · Pennsylvania Dept. of Revenue (3.07% flat) · IRS Rev. Proc. 2025-32 · SSA 2026 wage base.
- 🔄 Last updated June 9, 2026 · Tax year 2026
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