Philadelphia Wage Tax Graphic From the Business Tax Consultants at Wouch Maloney

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.

DISCLAIMER: The WM Update, WM Wednesday Wisdom, WM Daily Update COVID-19, COVID-19 Business Resources, COVID-19 Client News Alerts and other related communications are intended to provide general information, including information regarding legislative COVID-19 relief measures, as of the date of this communication and may reference information from reputable sources. Although our firm has made every reasonable effort to ensure that the information provided is accurate, we make no warranties, expressed or implied, on the information provided. As legislative efforts are still ongoing, we expect that there may be additional guidance and clarification from regulators that may modify some of the provisions in this communication. Some of those modifications may be significant. As such, be aware that this is not a comprehensive analysis of the subject matter covered and is not intended to provide specific recommendations to you or your business with respect to the matters addressed.