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Old 03-10-2015, 10:01 PM
 
245 posts, read 311,364 times
Reputation: 347

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Hello,


I just got a job in Jersey near Philly and am considering where to live. From reading on the internet, it looks like between Philly wage tax of 3.924% and Penn income tax of 3.07%, I would be paying 6.994% income tax on my salary if we lived in Philly. With virtually no deductions. At a salary of $60K, that would mean almost $4,200.00 in state and local taxes! IS THAT CORRECT?? By comparison, New Jersey will only tax me $1,000.00 because I'm married filing jointly. (My wife cannot work right now). It's hard to believe I would pay so much more in tax in Philly because everybody in NY&NJ constantly says how cheap it is to live in PA.


Thanks.
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Old 03-11-2015, 05:37 AM
 
Location: Cherry Hill, NJ
75 posts, read 110,336 times
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That's correct. If you work in New Jersey or the City of Philadelphia, it is usually cheaper from an income tax perspective to live in New Jersey. Other costs may partially or fully offset this advantage (property taxes).
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Old 03-11-2015, 03:34 PM
 
95 posts, read 180,808 times
Reputation: 104
Yep, the income tax calculation looks correct. But you should consider your total tax burden. In particular, when New Jersey is involved, it is a mistake to ignore property taxes. (or rent expenses if you are renting)
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Old 03-11-2015, 05:57 PM
 
245 posts, read 311,364 times
Reputation: 347
Thanks guys..

So I guess I need to drop the rent budget of a Philly apartment by a couple hundred bucks a month to equalize it with Jersey. That's what I was worried about....
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Old 03-24-2015, 10:06 AM
 
38 posts, read 39,727 times
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Does anyone know what the wage tax is allocated for? I would hope that it would go towards public schools/city infrastructure...
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Old 03-24-2015, 10:22 AM
 
Location: Mount Laurel
4,187 posts, read 11,930,625 times
Reputation: 3514
Quote:
Originally Posted by theTimmy View Post
Does anyone know what the wage tax is allocated for? I would hope that it would go towards public schools/city infrastructure...
The way I understand it. 0% of the city wage tax goes toward the education system. Most of the school funding is from property tax, SIT and Businnes tax and some of the other added taxes such as liquor, cigarettes, etc..
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