city tax and wage tax (Philadelphia, Pittsburgh: sale, real estate, car insurance)

[hashford]

o.k. please help out an ignoramous...say I live in Philadelphia- I pay a city tax right? do I also pay the wage tax? say I live in Langhorne-I pay a wage tax but no city tax? What exactly does that city tax go to and is it worth it? What other "hidden" expenses are there in Philadelphia- car tax? license tax? And heres a dumb one, what is center city? Don't want any extra money suprises killing a budget. Thanks

[Boompa]

The City Tax is just another name for the wage tax, you pay it if you live OR work in the city. I they only pay the tax for those days they work in the cityknow people who work in the city two days a week and outside the other days, as long as they do not work in the city.

Center City is that part of the city originally laid out by William Penn, downtown

[Rtom45]

Originally Posted by Boompa

The City Tax is just another name for the wage tax, you pay it if you live OR work in the city. I they only pay the tax for those days they work in the cityknow people who work in the city two days a week and outside the other days, as long as they do not work in the city.

Center City is that part of the city originally laid out by William Penn, downtown

In PA you pay a local tax (city tax) and a wage tax. I live in Millcreek township, outside of Erie. My local tax (for the township) is collected at the same time as my county tax. My wage tax is seperate, I believe the amount this year is $52 - they no longer call it a wage tax, it has some other name.

[Boompa]

Originally Posted by Rtom45

In PA you pay a local tax (city tax) and a wage tax. I live in Millcreek township, outside of Erie. My local tax (for the township) is collected at the same time as my county tax. My wage tax is seperate, I believe the amount this year is $52 - they no longer call it a wage tax, it has some other name.

BUt that isn't the Philadelphia Wage Tax which last ime I heard was over 5% of your salary. It applies to anyone living or working in Philadelphia.

[FamousBlueRaincoat]

Originally Posted by hashford

o.k. please help out an ignoramous...say I live in Philadelphia- I pay a city tax right? do I also pay the wage tax? say I live in Langhorne-I pay a wage tax but no city tax? What exactly does that city tax go to and is it worth it? What other "hidden" expenses are there in Philadelphia- car tax? license tax? And heres a dumb one, what is center city? Don't want any extra money suprises killing a budget. Thanks

The city tax is the wage tax. You pay it if you live in Philadelphia - you pay a little less (but it's a rather insignificant amount) if you work in Philadelphia, but live outside the city. It's like 3.9% versus 3.4%. Also, note: It's a wage tax, not an income tax. It's only on money you earn from being paid a wage by an employer.

That's the only "cost" I really know about. Like many who live in the city, I don't have a car, so I don't know about that. We have a great bus network that feeds into a couple of rapid transit lines, as well as a passenger rail system (based on the old PA and Reading Railroads) that have many stations in various parts of the city (especially Northwest Philly). Obviously car insurance may be a little more expensive in the city.

Center City, like already mentioned, is "Downtown" Philadelphia. The portion of Philadelphia that was originally the City of Philadelphia, laid out by William Penn. That would be the Delaware River to the Schuylkill River going East to West, and Vine Street to South Street going north the south. It basically includes the neighborhoods of Old City, Society Hill, Washington Square, Chinatown, Market East, Rittenhouse Square, Fitler Square, Logan Sqaure. Although as gentrification has progressed, those borders tend to be stretched by real estate people to perhaps Washington Avenue in South Philly up to Spring Garden or even Girard in North Philly. But technically Center City is just the original city of Philadelphia, as opposed to its current boundaries which is Philadelphia County - which includes something for everyone, really (the urban, walkable city, the railroad suburbs of Northwest Philly, the victorian streetcar suburbs of West Philly, the auto-dependent far northeast, and everything in between).

You can find more information (and plenty of misinformation) in the Philadelphia forum, though.

[hashford]

so let me get this straight..i work my butt off and get not only federal and state tax taken out but a wage tax if i live in pennsylvania. if i live or work in philadelphia i have to pay a city tax also? is there sale tax? i wonder how your taxes differ from other states.

[FamousBlueRaincoat]

Originally Posted by hashford

so let me get this straight..i work my butt off and get not only federal and state tax taken out but a wage tax if i live in pennsylvania. if i live or work in philadelphia i have to pay a city tax also? is there sale tax? i wonder how your taxes differ from other states.

There are 3 levels of taxation. Federal, State, and Municipal. That's how it is everywhere. I'm not sure what you're getting at, but it kind of sounds like you're imaging a 4th tax. Federal Income Tax, State Income Tax, and local municipalities do things their own way. In Philadelphia, they collect a wage tax. That's 3. The only way to really complicate things is if you're planning on living and working in a variety of states at the same time.

It's fairly normal. PA is a middle of the road tax state.

Sales tax is 6% statewide, except that it's 7% in Allegheny County and 8% in Philadelphia County. Food, clothing and a variety of other necessities are excluded.

[hashford]

i thought there was a philadelphia city tax to live or work in the city there plus a wage tax..hence the 4 taxes. i understand better now. thanks for the help.

[Edgk]

Originally Posted by Boompa

BUt that isn't the Philadelphia Wage Tax which last ime I heard was over 5% of your salary. It applies to anyone living or working in Philadelphia.

If you have no idea what you are talking about, please do not post anything. What's the point? Fact: The Philadelphia wage tax has never been as high as 5% no less over 5%. It maxed out at around 4.4% for residents and 4.2% for non-residents working in the city in the late 1990's. It is currently under 4% at around 3.9% for residents and 3.7% for non-residents.

[PeterRabbit]

In Allegheny County you pay wage tax according to where you live. Where you work has nothing to do with it. If you live in Pittsburgh the tax is 3% and most suburbs are 1%.