Philadelphia Take-Home Pay Calculator
Estimate your Philadelphia paycheck after the city's Wage Tax, Pennsylvania's flat state tax, federal income tax, and FICA.
What comes out of a Philadelphia paycheck
Philadelphia uses its own Wage Tax instead of the standard local Earned Income Tax structure most Pennsylvania municipalities use — 3.74% for residents and 3.43% for non-residents as of July 2025, applied directly to gross wages. This stacks on top of Pennsylvania's flat 3.07% state income tax.
PA state tax: ($80,000 − $4,000 pre-tax) × 3.07% = $2,333.20. Philadelphia Wage Tax (resident): $80,000 × 3.74% = $2,992.
Federal tax (on $61,000 taxable) ≈ $8,334 · Social Security $4,960 · Medicare $1,160.
Annual take-home ≈ $56,221 → about $2,162 per biweekly paycheck (70.3% of gross) — noticeably lower than the same salary elsewhere in Pennsylvania.
Resident vs. non-resident rates
Philadelphia charges a lower Wage Tax rate to non-residents who commute into the city for work than to residents — 3.43% versus 3.74% as of July 2025. This is the opposite structure from many cities, where commuters sometimes pay the same or nearly the same rate as residents; Philadelphia explicitly discounts the rate for people who don't live within city limits.
The Wage Tax is scheduled to keep falling
Philadelphia City Council approved a five-year gradual tax-cut plan in June 2025, phasing the resident rate down to 3.70% and the non-resident rate to 3.39% by FY30. This calculator uses the rate effective July 1, 2025; expect small further reductions each year through the plan's completion.
Common mistakes when estimating Philadelphia take-home pay
- Applying the resident rate to a non-resident commuter. The two rates differ, and using the wrong one meaningfully changes the estimate.
- Confusing the Wage Tax with a standard PA local Earned Income Tax. Philadelphia's structure is unique and doesn't work like other Pennsylvania municipalities' EIT.
- Using an outdated rate. The rate changes on July 1 each year as part of the multi-year phase-down.
Frequently asked questions
What is the Philadelphia Wage Tax rate?
3.74% for residents and 3.43% for non-residents, effective July 1, 2025, and scheduled to decrease gradually.
How is the Wage Tax different from Pennsylvania's Earned Income Tax?
Philadelphia uses its own unique structure applied to gross wages, rather than the standard local EIT most PA municipalities use.
Do Philadelphia commuters who live elsewhere pay the full resident rate?
No — non-residents pay a lower 3.43% rate versus 3.74% for residents.
Is the Philadelphia Wage Tax rate decreasing?
Yes — a five-year plan approved in 2025 phases both rates down gradually through FY30.
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Note: Simplified estimate using Wage Tax rates effective July 1, 2025, and 2025 PA/federal figures; excludes credits. Not tax advice. Figures: 2025 Philadelphia, Pennsylvania, and federal tax year. Last reviewed: September 2026.