2021 PA State Wage Tax Rate

At Haefele Flanagan, we are dedicated to ensuring that you have the support and guidance necessary to comply with complicated tax laws. We are committed to making sure your taxes align with your financial goals while minimizing penalties. 

2021 Tax Highlights

We have summarized the major changes, as of this date, which will affect your payroll tax calculations effective January 1, 2021. Check our website, www.hfco.com, for periodic updates.

Philadelphia Wage Tax

Effective July 1, 2021 the new resident rate for the wage tax, earnings tax, and net profits tax is 3.8398% (previously 3.8712%). The non-resident rate is now 3.4481% (previously 3.5019%).

Employers must begin withholding wage tax at the new rate from all paychecks issued to residents and non-residents after June 30, 2021.

Minimum Hourly Wage

 Amount    Effective Date
Federal$7.25July 24, 2009
Pennsylvania    $7.25July 24, 2009

PA State Wage Tax Rate 2020

2020 Tax Highlights

We have summarized the major changes, as of this date, which will affect your payroll tax calculations effective January 1, 2020. 

Philadelphia Wage Tax

Effective July 1, 2020 the Philadelphia City Wage Tax rate for non-residents increased to 3.5019% (or .035019). The rate for residents remains the same at 3.8712% (or .038712).

Minimum Hourly Wage

 Amount    Effective Date
Federal$7.25July 24, 2009
Pennsylvania    $7.25July 24, 2009

PA State Wage Tax Rate 2019

2019 Tax Highlights

We have summarized the major changes, as of this date, which will affect your payroll tax calculations effective January 1, 2019. 

Philadelphia Wage Tax

The withholding rate for Philadelphia City Wage Tax effective July 1, 2018 is 3.8809% (or .038809) for residents, and 3.4567% (or .034567) for non-residents.

Minimum Hourly Wage

 Amount    Effective Date
Federal$7.25July 24, 2009
Pennsylvania    $7.25July 24, 2009

If you have any questions, please contact:

Fred Schutz,
Director-Tax Department
P: 856-722-5300, ext. 201
E:fred.schutz@hfco.com
Teri Niedermayer
Senior Accounting Tech
P: 856-722-5300, ext. 516
E:teri.niedermayer@hfco.com
Brian Vinciguerra
Small Business Manager
P: 856-722-5300, ext. 501
E:brian.vinciguerra@hfco.com

Additional Resources

The information contained herein is general in nature and is based on authorities that are subject to change. It is not intended, and should not be construed, as legal, accounting or tax advice or opinion provided by Haefele, Flanagan & Co., PC to the reader. This material may not be applicable to, or suitable for, the specific circumstances or needs, and may require consideration of non-tax and other tax factors. Contact Haefele, Flanagan & Co., PC prior to taking any action based upon this information. Haefele, Flanagan & Co., PC assumes no obligation to inform the reader of any changes in tax laws or other factors that could affect the information obtained herein.