Philadelphia Tax Rate Changes Starting July 1st
Philadelphia is changing the rate of its:
- wage tax;
- earnings tax;
- net profits tax; and
- school income tax.
The changes are 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.
School Income Tax
The school income tax rate is also changing. As of July 1, 2021, the rate for residents will be 3.8398% (previously 3.8712%).