Understanding the Wage Tax (Philadelphia, Plymouth: taxi, income, property taxes)

[maestro]

so someone explain the wage tax to me. I think I understand it, but I need some clarity:

-- if you live in the burbs but work within Philly city limits, you pay the wage tax. Correct?
-- if you live AND work in the burbs, do you still pay any wage tax or something similar?

[Pat_in_Pa]

1) Yes
2) No wage tax (usually).

[maestro]

Originally Posted by Pat_in_Pa

1) Yes
2) No wage tax (usually).

what are the circumstances that you'd have to pay a wage tax if you live and work in the burbs?

[Pat_in_Pa]

Per Capita & Occupation Assessment Tax
Borough of New Hope, PA
There are a couple of taxing authorities with some "weird" taxes.

[maf763]

A number of suburban townships have a wage tax, but usually it's along the lines of 1% instead of the higher city tax.

[Pat_in_Pa]

You owe me a Miller Lite, maf.

[maestro]

jeez, I have to imagine that this wage tax basically forces people (and companies) out to the 'burbs, eh?

[Pat_in_Pa]

Access to public transportation (i.e., hordes of people willing to work for thirty grand a year) keeps many low-margin companies within the city limits.

There's also a tradition or expectation of higher-quality services available only in the city. If you were spending a bundle on accounting and tax services each year, who would you be more likely to hire....Joey Levandowski and Assoc. in Plymouth Meeting, or ABC, LLC on Market St., in Phil?

[Ohiogirl81]

-- if you live in the burbs but work within Philly city limits, you pay the wage tax. Correct? Yes, but the percentage take out of your paycheck is lower than if you lived and worked within the city limits. It's still a huge chunk of change, though; higher than the state income tax. The payoff you get for living in the city is lower property taxes. And free garbage collection.

-- if you live AND work in the burbs, do you still pay any wage tax or something similar? Many suburban townships and cities have their own income taxes, just like in Ohio; however, if you work in Philadelphia and pay Philadelphia's income tax, you are exempt from income tax in your township or city of residence.

[maestro]

Originally Posted by Ohiogirl81

-- if you live in the burbs but work within Philly city limits, you pay the wage tax. Correct? Yes, but the percentage take out of your paycheck is lower than if you lived and worked within the city limits. It's still a huge chunk of change, though; higher than the state income tax. The payoff you get for living in the city is lower property taxes. And free garbage collection.

-- if you live AND work in the burbs, do you still pay any wage tax or something similar? Many suburban townships and cities have their own income taxes, just like in Ohio; however, if you work in Philadelphia and pay Philadelphia's income tax, you are exempt from income tax in your township or city of residence.

just to clarify: so if I live in the burbs but work in the city, I would pay the Philly wage tax but would not have to pay local income taxes to the surburban township in which I live? But if I do live and work in the burbs, I would pay the local income taxes? I think I'm confusing myself...