Philadelphia Wage Tax reduced beginning July 1

Updated: Aug 6, 2018

by Joseph Bamat


"The City of Philadelphia will reduce its Wage Tax rate starting July 1, 2018. The rate change has an immediate impact on all businesses that operate in the city, or that hire Philadelphia residents. The new rates are:


3.8809% (.038809) for residents of Philadelphia

3.4567% (.034567) for non-residents

All paychecks issued by businesses with a pay date after June 30, 2018 must have Philadelphia City Wage Tax withheld at the new rates."


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Learn more about how and when to pay Wage Tax by visiting the City of Philadelphia website.



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