Quick Answer
Philadelphia charges a City Wage Tax of about 3.75% for residents (and ~3.44% for non-residents who work in the city), on top of Pennsylvania's 3.07% state tax — a combined local+state income tax near 6.8%. A single filer on $60,000 living in Philadelphia takes home about $46,289 a year (~$1,780 per bi-weekly check) after federal tax, FICA, PA state tax, and the Wage Tax. Rates adjust yearly, so confirm the current figure.
Philadelphia has one of the highest local income taxes in the country: the City Wage Tax. If you live or work in Philadelphia, it comes straight out of every paycheck — and it's on top of Pennsylvania's 3.07% state tax. Here's exactly what it costs and how to figure your real take-home.
Philadelphia Wage Tax rate
Residents: ~3.75% of all wages
Non-residents working in the city: ~3.44% of wages earned in Philadelphia
The Wage Tax applies to gross compensation — there's no standard deduction or exemption. The city trims the rate slightly most years, so always confirm the current number with the Philadelphia Department of Revenue. Unlike the rest of Pennsylvania (which charges a ~1% local Earned Income Tax), Philadelphia uses this Wage Tax instead.
Who pays it?
- You live in Philadelphia — you pay the resident rate on all your wages, wherever you work.
- You work in Philadelphia but live elsewhere — you pay the non-resident rate on income earned in the city.
- You live and work outside the city — you don't owe the Wage Tax at all.
Philadelphia take-home pay by salary (2026)
Single filer living in Philadelphia: federal tax + FICA + PA state tax (3.07%) + city Wage Tax (~3.75%).
| Salary | PA tax | Wage Tax | Take-home / yr | Per month |
|---|---|---|---|---|
| $40,000 | $1,228 | $1,500 | $31,583 | $2,632 |
| $60,000 | $1,842 | $2,250 | $46,289 | $3,857 |
| $75,000 | $2,303 | $2,813 | $56,276 | $4,690 |
| $100,000 | $3,070 | $3,750 | $72,158 | $6,013 |
2026 IRS data + PA Department of Revenue + estimated Philadelphia resident Wage Tax. Rates adjust annually. Estimate your PA paycheck →
The bottom line
Philadelphia's combined state + city income tax of nearly 6.8% means a Philadelphia paycheck is taxed meaningfully more than one in a suburban PA town, where the local rate is closer to 1%. Factor it in when comparing job offers or deciding where to live.
To see your full take-home, use the Pennsylvania paycheck calculator for the federal and state portion, then subtract your city Wage Tax (gross × the current rate). Comparing pay across towns? The Pennsylvania salary calculator gives you the statewide baseline.