How Philadelphia taxes your pay
Philadelphia's Wage Tax replaces the local earned income tax paid everywhere else in Pennsylvania. Residents pay it on all their pay wherever they work; commuters pay a lower rate on pay for work done in the city.
New Jersey commuters have no Pennsylvania state tax withheld, because the two states have a reciprocal agreement, but they still pay the Wage Tax. New Jersey gives a credit for it against New Jersey tax.
Philadelphia tax rates for 2026
- Philadelphia Wage Tax: 3.735% of pay for residents, wherever they work; 3.425% for people who live elsewhere, on pay for work done here.
| Salary | Live and work here | Work here, live elsewhere in Pennsylvania | Take-home, living here | Take-home with no local tax |
|---|---|---|---|---|
| $40,000 | $1,494 | $1,370 | $31,570 | $33,064 |
| $60,000 | $2,241 | $2,055 | $46,265 | $48,506 |
| $75,000 | $2,801 | $2,569 | $56,436 | $59,237 |
| $100,000 | $3,735 | $3,425 | $72,305 | $76,040 |
| $150,000 | $5,602 | $5,138 | $103,478 | $109,081 |
| $250,000 | $9,337 | $8,563 | $165,995 | $175,332 |
The commuter column assumes a home elsewhere in Pennsylvania with no local tax of its own; a home city or county with its own tax can add to it or credit it.
Worked example: the Pennsylvania median wage in Philadelphia
The median annual wage in Pennsylvania is $49,690: half of all jobs pay more and half pay less, in the Bureau of Labor Statistics wage survey for May 2025 (all occupations; survey date May 31, 2025). Paid every two weeks as a single filer, with no 401(k) or benefits, that salary works out like this in Philadelphia, Pennsylvania.
| Line | Each paycheck | Year |
|---|---|---|
| Gross pay | $1,911.15 | $49,690.00 |
| Federal income tax | $145.49 | $3,782.75 |
| Social Security | $118.49 | $3,080.75 |
| Medicare | $27.71 | $720.46 |
| Pennsylvania income tax | $58.67 | $1,525.43 |
| Philadelphia Wage Tax | $71.38 | $1,855.89 |
| PA Unemployment Compensation (employee) | $1.34 | $34.84 |
| Take-home pay | $1,488.07 | $38,689.88 |
You keep 77.9% of gross pay. Of the $11,000 withheld, federal income tax is the largest part at $3,783, followed by Social Security at $3,081.
Without the local tax the same salary would leave $40,546 a year in Pennsylvania, so living and working in Philadelphia costs $1,856 a year, or 3.7% of pay.
Live in New Jersey, work in Philadelphia
On the same $49,690 salary, take-home pay in this case comes to $38,971 a year, $282 more than living and working in Philadelphia.
| Line | Year |
|---|---|
| Pennsylvania income tax | $0 |
| New Jersey income tax | $1,398 |
| Philadelphia Wage Tax | $1,702 |
| PA Unemployment Compensation (employee) | $35 |
| Take-home pay | $38,971 |
Enter both states in the calculator ("I live in a different state") to run this with your own pay.
Philadelphia paycheck questions
How much is Philadelphia local tax on $75,000 a year?
$2,801 for the year if you live and work in Philadelphia, single and paid every two weeks, and $2,569 if you work there but live elsewhere in Pennsylvania. That leaves $56,436 after all taxes, against $59,237 with no local tax.
Do I pay Philadelphia tax if I live there but work somewhere else?
Yes. Philadelphia taxes residents on their pay wherever they work.
What is the Pennsylvania median wage after tax in Philadelphia?
The median wage in Pennsylvania is $49,690 (Bureau of Labor Statistics, May 2025). Living and working in Philadelphia, that leaves $38,690 a year after federal, Pennsylvania, FICA and $1,856 of local tax.
What does a paycheck look like in Philadelphia?
At the Pennsylvania median wage, paid every two weeks, each paycheck is $1,911.15 before tax and $1,488.07 after it. $71.38 of that goes to Philadelphia, next to $145.49 of federal income tax and $58.67 for Pennsylvania.
How much Philadelphia tax is withheld on $250,000?
$9,337 for the year living and working there, which leaves $165,995 after every tax, against $175,332 with no local tax.
What if I live in New Jersey and work in Philadelphia?
On $49,690, take-home pay comes to $38,971 a year, against $38,690 living and working in Philadelphia. Enter both states in the calculator to see each line.
Sources
Rules checked . How we calculate.