Philadelphia City Wage Tax Decrease Announced
The City of Philadelphia announced a decrease in the Philadelphia City Wage Tax for both residents and non-residents effective July 1, 2021.
Update Payroll Systems
Employers with employees working within the City limits need to make certain the new Philadelphia City Wage Tax rates are reflected in any paycheck issued with a pay date after June 30, 2021. Be certain to apprise your payroll providers or update your payroll systems with the new rates.
New Philadelphia City Wage Tax Rates:
- Philadelphia Residents: 3.8398% (.038398)
- Non-Philadelphia Residents: 3.4481% (.034481)
If you have questions about the new rates, questions should be directed to the Department of Revenue office at 215.686.6600 or visit their website at www.phila.gov/revenue.
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