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Old 11-12-2018, 07:49 PM
 
151 posts, read 117,713 times
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Hi,

Does anyone know which townships in the PA suburbs have 0% Earned Income Tax (wage tax)? My partner works in Lower Merion, which is 0%, and we're considering a suburban move within the next couple of years. It's my understanding that the wage tax is dependent on where you live and work, however where you live trumps the work-location tax rate. For example, if we lived in Bala Cynwyd AND worked in Bala Cynwyd, the wage tax would be 0%. Since we live in Philly, my partner pays Philly resident wage tax, even though he works in Lower Merion which is 0%. So, in order to pay 0%, we'd have to live and work in townships with 0% wage tax.

I know that Lower Merion, Upper Merion, and Narberth are three townships/municipalities that are 0% wage tax. Are there any others in the PA suburbs?

TIA

Last edited by phillytransplant13; 11-12-2018 at 08:33 PM..
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Old 11-13-2018, 05:59 AM
 
Location: Philadelphia, PA
288 posts, read 161,842 times
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Quote:
Originally Posted by phillytransplant13 View Post
Hi,

Does anyone know which townships in the PA suburbs have 0% Earned Income Tax (wage tax)? My partner works in Lower Merion, which is 0%, and we're considering a suburban move within the next couple of years. It's my understanding that the wage tax is dependent on where you live and work, however where you live trumps the work-location tax rate. For example, if we lived in Bala Cynwyd AND worked in Bala Cynwyd, the wage tax would be 0%. Since we live in Philly, my partner pays Philly resident wage tax, even though he works in Lower Merion which is 0%. So, in order to pay 0%, we'd have to live and work in townships with 0% wage tax.

I know that Lower Merion, Upper Merion, and Narberth are three townships/municipalities that are 0% wage tax. Are there any others in the PA suburbs?

TIA
Municipal Statistics

Plug in the county and municipality to see withholding rates. Pick Philly as a test to verify it is correct. You can also go to Taxes in the upper left corner and then look up withholding rates by address to see a particular property's rate.

I have also recently considered exactly what you are thinking because between the wage tax and property tax, we could save at least $6k living in the suburbs. A household income of $150k is $5,820 in wage tax alone! Add on property tax and you're looking at easily $10k and above. The tradeoff is that the suburbs are boring as heck compared to the city...
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Old 11-13-2018, 06:22 AM
 
Location: Montco PA
2,065 posts, read 4,289,577 times
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Lower Merion Township (as you know), also Upper Merion Township (generally speaking, King of Prussia), Radner Township, and Treddyfrin and Easttown Townships don’t have an EIT. There are others as well, but these four come to mind. And, be sure to use the website posted by BK_PHL_DEL to verify.
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Old 11-13-2018, 05:57 PM
 
151 posts, read 117,713 times
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Quote:
Originally Posted by BK_PHL_DEL View Post
Municipal Statistics

Plug in the county and municipality to see withholding rates. Pick Philly as a test to verify it is correct. You can also go to Taxes in the upper left corner and then look up withholding rates by address to see a particular property's rate.

I have also recently considered exactly what you are thinking because between the wage tax and property tax, we could save at least $6k living in the suburbs. A household income of $150k is $5,820 in wage tax alone! Add on property tax and you're looking at easily $10k and above. The tradeoff is that the suburbs are boring as heck compared to the city...
I've used that link before and it's super helpful, and I checked the immediate surrounding suburbs but felt I should stop before I spend all night Zillow-ing addresses haha.

The EIT does make a difference, especially when paying property taxes. The benefit of owning in the city is that Philly property taxes are generally lower than the suburbs, however our taxes were just increased by 60% and we lost the initial review - and have no energy to deal with an appeal, tbh. When considering our next move, if we can find a close suburb that doesn't break the bank on taxes, we'll be close to the city when we want to escape the boring 'burbs.

It seems the townships that have 0% EIT also have higher house values. We can't afford LM, Radnor, or Tredyffrin - at least, not what we're looking for (larger than 1,500 square feet, single family home, partially updated, etc.).
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Old 11-13-2018, 06:00 PM
 
151 posts, read 117,713 times
Reputation: 122
Quote:
Originally Posted by BPP1999 View Post
Lower Merion Township (as you know), also Upper Merion Township (generally speaking, King of Prussia), Radner Township, and Treddyfrin and Easttown Townships don’t have an EIT. There are others as well, but these four come to mind. And, be sure to use the website posted by BK_PHL_DEL to verify.
KOP is an option because the property taxes are lower than surrounding townships and the housing stock seems to be within budget....but KOP lacks charm and is incredibly overdeveloped, plus the traffic is heinous. Does anyone even like KOP? Everyone shops there, but does anyone actually enjoy their time there?
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Old 11-19-2018, 08:20 AM
 
Location: Philly
10,026 posts, read 14,472,347 times
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Quote:
Originally Posted by BK_PHL_DEL View Post
Municipal Statistics

Plug in the county and municipality to see withholding rates. Pick Philly as a test to verify it is correct. You can also go to Taxes in the upper left corner and then look up withholding rates by address to see a particular property's rate.

I have also recently considered exactly what you are thinking because between the wage tax and property tax, we could save at least $6k living in the suburbs. A household income of $150k is $5,820 in wage tax alone! Add on property tax and you're looking at easily $10k and above. The tradeoff is that the suburbs are boring as heck compared to the city...
property taxes are higher in lower merion which claws back some of the savings if your child isn't enrolled in the schools
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