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Old 06-28-2010, 05:15 PM
 
Location: Montgomery County, PA
2,771 posts, read 5,669,394 times
Reputation: 603

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Quote:
Originally Posted by jersey224
I currently live in NJ and work in Philly....so my paycheck will already deduct the wage tax? I am moving to Philly soon and I will be renting, will they take out even more since i live in Philly now?
I believe that's correct (that they will withhold more. You will pay more). Wage tax is 4.5% if you live in Philly, 3.9% if you work there but live elsewhere.

Quote:
Originally Posted by frrraaannkk View Post
so i work in nj and live in phila do i have to pay city wage tax
Yes, it's 4.5% for residents.
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Old 06-28-2010, 07:51 PM
 
521 posts, read 1,171,138 times
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Those are not the right numbers. The wage tax has been cut over the years, slowly but surely. And it's no longer above 4% for residents or non-residents.

In fact for current year, it is 3.92% for residents and 3.49% for non-residents.

The gap between city's wage tax and that of surrounding suburbs is narrowing, albeit very slowly.
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Old 08-05-2010, 07:22 PM
 
Location: NYC
9 posts, read 43,400 times
Reputation: 13
I think I know the answer but I have to ask it anyway...

What if you live in the city but work/commute to NYC? (though I guess it less than the NYC tax?)
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Old 08-22-2010, 06:14 PM
 
47 posts, read 149,297 times
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Default just to clarify?

ok so to clarify, if I work and live IN the city, I have to pay the city wage tax? do they take this out of every paycheck or I pay it on taxes at the end of the year?
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Old 08-22-2010, 06:49 PM
 
Location: Mount Airy, Philadelphia
149 posts, read 399,700 times
Reputation: 131
Default Playing Devil's Advocate

Just to give some perspective, I used to live in Glenside where I paid relatively high property taxes (and if you live in jersey the property taxes are astronomical) and a 1% income tax. I moved to Mt Airy where I pay a much smaller property tax plus the wage tax. Many, many people would fall into the same category if they lived in the city vs. suburbs.

So, at what point do people compare their total tax burden and realize it is often a wash, city vs. suburbs? Don't get me wrong i don't like the wage tax, but I did the math when I moved (Glenside vs. Mt Airy) and it was a wash. It seems to me that the wage tax issue is often a point of contention for suburbanites when referring to the city, but if people dug a little deeper they'd find savings in other areas.
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Old 08-23-2010, 05:38 AM
 
Location: Montgomery County, PA
2,771 posts, read 5,669,394 times
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Quote:
Originally Posted by G Goo View Post
Just to give some perspective, I used to live in Glenside where I paid relatively high property taxes (and if you live in jersey the property taxes are astronomical) and a 1% income tax. I moved to Mt Airy where I pay a much smaller property tax plus the wage tax. Many, many people would fall into the same category if they lived in the city vs. suburbs.

So, at what point do people compare their total tax burden and realize it is often a wash, city vs. suburbs? Don't get me wrong i don't like the wage tax, but I did the math when I moved (Glenside vs. Mt Airy) and it was a wash. It seems to me that the wage tax issue is often a point of contention for suburbanites when referring to the city, but if people dug a little deeper they'd find savings in other areas.
The higher your income is, the harder the income tax hits you.

Break even point is the difference in property taxes divided by the difference in income tax rates (usually 0.0392 - 0.01 = 0.0292).

So for example if you were to pay 4000 property tax in the suburbs and 1500 in the city, the break even point is (4000-2500)/0.0292 = 85k meaning you will pay less tax if you live in the city if you make less than 85k.

If you're making less than 100k, your tax burden probably isn't substantially higher in the city. But if you're making more than that, it could be.

This assumes you're not working in the city. If you do work in the city, you will pay less tax if you also live there.
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Old 08-23-2010, 06:38 AM
 
Location: Mount Airy, Philadelphia
149 posts, read 399,700 times
Reputation: 131
Quote:
Originally Posted by elflord1973 View Post
The higher your income is, the harder the income tax hits you.
Of course, but it seems to me that everybody complains about the wage tax despite income; but that's probably a blind assessment. Actually, at the time we moved the taxes were a wash but I probably pay more now. Given our increase in quality of life by moving into the city I'm OK with the extra tax burden.....but we had a baby recently and the whole school thing changes the equation a bit.
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Old 08-29-2010, 04:54 AM
 
Location: East Mt Airy, Philadelphia
1,095 posts, read 1,124,688 times
Reputation: 2100
Quote:
Originally Posted by G Goo View Post
Just to give some perspective, I used to live in Glenside where I paid relatively high property taxes (and if you live in jersey the property taxes are astronomical) and a 1% income tax. I moved to Mt Airy where I pay a much smaller property tax plus the wage tax. Many, many people would fall into the same category if they lived in the city vs. suburbs.

So, at what point do people compare their total tax burden and realize it is often a wash, city vs. suburbs? Don't get me wrong i don't like the wage tax, but I did the math when I moved (Glenside vs. Mt Airy) and it was a wash. It seems to me that the wage tax issue is often a point of contention for suburbanites when referring to the city, but if people dug a little deeper they'd find savings in other areas.
When I moved from North Carolina to Mt Airy, my taxes (property, real estate, state, federal) were almost identical because of the real estate - local tax issues that the OP mentioned. If you consider the total cost of living - factoring in car insurance costs (generally higher in the city than the 'burbs), less driving and car time in the city than 'burbs, etc. - it may, for some incomes, be more economical to live in the city. When I was living in the Chapel Hill suburbs I was in my car a lot more than I wanted to be. Now, instead of filling up twice a week I'm doing it about once a month. That $ adds up, especially if/when gas prices creep up to $4.

Bottom line (literally): discussion of the nuances of different locations' taxation is fine and valid, but [1] consider the total costs imposed by a location (taxes, insurance, etc.) and [2] if you want accurate tax numbers, ask your current or prospective employer's payroll guru or pay for a 1/2 hour of a tax accountant's time (that way, you'll know you'll have accurate information). But I wouldn't base a location decision solely on tax burden. Quality of life suffers when you live in a cheap, low-taxed town that requires you being on the road to your job a couple of hours a day.
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