PA Wage Tax
2022 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.
2022 Tax Highlights
We have summarized the major changes, as of this date, which will affect your payroll tax calculations effective January 1, 2022. Check our website, www.hfco.com, for periodic updates.
Philadelphia Wage Tax
Effective July 1, 2021 the Philadelphia City Wage Tax rate for non-residents decreased to 3.4481% (or .034481). The rate for residents decreased to 3.8398% (or .038398).
Minimum Hourly Wage
| Amount | Effective Date | |
| Federal | $7.25 | July 24, 2009 |
| Pennsylvania | $7.25 | July 24, 2009 |
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 | $7.25 | July 24, 2009 |
| Pennsylvania | $7.25 | July 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 | $7.25 | July 24, 2009 |
| Pennsylvania | $7.25 | July 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 | $7.25 | July 24, 2009 |
| Pennsylvania | $7.25 | July 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 |
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.