Philadelphia Local Income Tax: What It Means for Your Paycheck (2026)
Calculator scope: ExactTakeHome currently calculates federal and Pennsylvania state income tax. Local income taxes are not included in the calculator.
What is Philadelphia's Local Income Tax?
Philadelphia levies a wage tax on earned wages at 3.75% for residents. Non-residents who work in Philadelphia pay a 3.44% wage tax on Philadelphia-source wages (2026). Flat rate for Philadelphia residents on wages and net profits from Philadelphia sources. According to Philadelphia Department of Revenue, 2026, the Philadelphia wage tax rate for residents is 3.75% as of 2026.
How Much Does Philadelphia's Local Tax Cost?
| Annual Salary | Estimated Local Tax (3.75%) | Monthly Local Tax |
|---|---|---|
| $40,000 | $1,500 | $125 |
| $60,000 | $2,250 | $188 |
| $75,000 | $2,813 | $234 |
| $100,000 | $3,750 | $313 |
| $150,000 | $5,625 | $469 |
These are estimates of the local tax component only. Your total paycheck deductions also include federal income tax, Social Security, Medicare, and Pennsylvania state income tax.
Calculate Your Federal and State Taxes
ExactTakeHome currently calculates federal and Pennsylvania state income tax for Philadelphia residents. To estimate your take-home pay excluding local tax, use the Pennsylvania calculator and add the local tax amount from the table above for a full planning estimate.
Does Philadelphia's Local Tax Apply to Remote Workers?
Philadelphia residents pay the resident wage tax on wages regardless of where they work. Non-residents who perform work in Philadelphia owe the non-resident wage tax on Philadelphia-source wages. Remote workers should confirm whether their wages are treated as Philadelphia-source with the Department of Revenue.
Frequently Asked Questions
3.75% wage tax for residents. Source: Philadelphia Department of Revenue, 2026.
Residents of Philadelphia owe the 3.75% resident rate on wages. Non-residents who work in Philadelphia pay a 3.44% wage tax on Philadelphia-source wages (2026).
An estimated $2,813 per year ($234 per month) at the 3.75% rate. This is an estimate of the local component only.
No. ExactTakeHome currently calculates federal and Pennsylvania state income tax. Local income taxes are not included in the calculator.
Use the Pennsylvania calculator on ExactTakeHome for federal and state withholding, then subtract the estimated local tax from the table on this page for a planning estimate.