How Philadelphia stacks local tax on top of the state
Philadelphia is one of the few US cities with its own income tax, called the Wage Tax. It applies to gross compensation at roughly 3.75% for residents and 3.44% for non-residents who work in the city. On top of that, every Pennsylvania worker pays the flat 3.07% state income tax. This calculator computes both layers so you can see your total local-plus-state burden on wages, separate from federal withholding.
How it works
Both taxes are flat rates applied to gross wages, with no brackets. The Wage Tax rate depends on whether you live in Philadelphia. The math is:
wage_rate = resident ? 0.0375 : 0.0344
city_tax = wages * wage_rate
state_tax = wages * 0.0307
total = city_tax + state_taxBecause there are no brackets, the effective rate equals the statutory rate, and the total is simply the sum of the two flat percentages applied to the same gross figure.
Example and notes
A Philadelphia resident earning $60,000 owes 60000 * 0.0375 = $2,250 in city Wage Tax plus 60000 * 0.0307 = $1,842 in PA state tax, totaling $4,092 before federal tax. A non-resident commuter on the same salary owes the lower 3.44% city rate, about $2,064, for a $3,906 combined local-plus-state total. These are flat-rate figures on gross wages; federal income tax, Social Security, and Medicare are withheld separately and are not part of this estimate.