City Wage Tax Question (Philadelphia, Media: 2009, house, neighborhood)

[Sunnyabc]

Is it true that I will have to pay an additional 4% wage tax if I live within Philadelphia city limits? Will I need to pay this tax if I decide to live in Media for example?

[Sassygirl18]

If you live in the city of Philadelphia, you pay 3.93% wage tax, regardless of where you work (even if you work outside the city).

If you live outside the city and work in Philadelphia, you pay 3.5%.

More info

[ibis888]

I could be wrong but I believe that it is 4.5%. You have to pay it if you live OR work within the Philadelphia city limits.

[creagan12]

I don't believe that Media is technically within Philadelphia so you would not have to pay the wage tax, unless of course, you work in Philly.

[apissedant]

Originally Posted by ibis888

I could be wrong but I believe that it is 4.5%. You have to pay it if you live OR work within the Philadelphia city limits.

This is the old tax rate. The person that said 3.9 and 3.5 is correct. Those are the current tax rates.


You will have to pay it even if you work outside of Philadelphia. You will not, however, have to pay any wage taxes for that locality. Most communities charge a 1% wage tax in the area, but Philadelphia has the right to charge a higher tax because of some law passed 50 years ago.

Keep in mind Philadelphia typically has lower property tax rates. The tax alone should not prevent you from moving to Philadelphia instead of one of the suburbs. Compare the total expenses of transportation, property tax, and income tax to see what is cheaper for you. Then just make sure you find a neighborhood you are comfortable and safe living in.

[apissedant]

P.S. With the exception of Philadelphia, you will end up paying the wage tax for where you live instead of where you work assuming they both have a wage tax. Philadelphia, by the same law mentioned earlier, ALWAYS gets the tax, whether you live there, work there, or both. In order to avoid Philadelphia taxes, you must choose a job outside of the city and a house outside the city.

[discndav]

If you have the wage tax taken out and work outside of the city during the year, complete the Wage Tax Refund form. I do this for the 14-20 days I work out of the city each year. It usually amounts to a $40 - $100 refund.

[CC of Mt. Airy]

I've looked on Phila.gov's Revenue site for 2009 wage tax forms (annual earnings tax). I would like to pay quarterly to avoid a huge lump sum in April. Is it possible to pay quarterly? The city does not make it clear or easy to find out. Many thanks! I think quarterly payments are do today - 7.31

[niceguy19125]

Isn't the wage tax wonderful? The return on investment is so, what's the word i'm looking for..insignificant?

[Mr. Opinion]

Originally Posted by Sunnyabc

Is it true that I will have to pay an additional 4% wage tax if I live within Philadelphia city limits? Will I need to pay this tax if I decide to live in Media for example?

I work in the city.

I had to sit down with my financial advisor and he recommended that I claimed more dependants to balance out my check.

I use to claim 2. Now I claim 4 dependants. By doing that really it helped me.

Think about it and make your own decision about what you want do.