City of Philadelphia Wage Tax Rate Decrease

The City of Philadelphia announced a Wage Tax rate decrease for workers that live in the city starting July 1, 2023. The new Wage Tax rate for residents of Philadelphia is 3.75% (.0375), down from 3.79%.

The Wage Tax rate for non-residents remains unchanged for those who are subject to the Philadelphia City Wage Tax at 3.44% (.0344).  

Paychecks issued with a pay date after June 30, 2023 must have Philadelphia City Wage Tax withheld at the new rate for residents.  

Source: https://www.phila.gov/