Wage Tax if I work outside city? (Philadelphia, Penn: income, property taxes)

[cli4d36p]

Can someone explain the Philadelphia wage tax? If I work outside the city limits and live inside the city limits will I have to pay the Philly wage tax?

[john_starks]

yes. i work in jersey and get a philly withholding tax. not sure what % though.

[Shino306]

If you work or live in Philly proper you pay the wage tax...you pay more when you work & live in Philly.

[PeeAye Native]

Originally Posted by john_starks

yes. i work in jersey and get a philly withholding tax. not sure what % though.

Residents: 3.9296% (.039296)
Non-Residents: 3.4997% (.034997)

City of Philadelphia | Revenue Department -- Check back, it changes every six months

[FindingZen]

Originally Posted by PeeAye Native

Residents: 3.9296% (.039296)
Non-Residents: 3.4997% (.034997)

City of Philadelphia | Revenue Department -- Check back, it changes every six months

Ah, it's going down slowly but surely. When I last lived and worked in Philly, the residents' rate was over 4%.

[solibs]

personally, i'd much rather keep the wage tax where it is and keep my $500/year property taxes right where they are.

[bryson662001]

Originally Posted by PeeAye Native

Residents: 3.9296% (.039296)
Non-Residents: 3.4997% (.034997)

City of Philadelphia | Revenue Department -- Check back, it changes every six months

To further qualify......city residents pay the higher amount, no matter where they work, in the city or not. The lower rate is for non residents who only work in the city. There is nothing to file and there are no deductions. The payroll dept where you work is supposed to deduct it from your gross pay and that's it. It just dissapears before you ever see it.

[PeeAye Native]

Originally Posted by bryson662001

To further qualify......city residents pay the higher amount, no matter where they work, in the city or not. The lower rate is for non residents who only work in the city. There is nothing to file and there are no deductions. The payroll dept where you work is supposed to deduct it from your gross pay and that's it. It just dissapears before you ever see it.

And it's also a one way process, in that you'll never ever get a refund of any money. Say you live outside the city and work in the city for an employer based in the city. You occasionally do your work outside the city limits. Make certain your employer is not submitting taxes for the time spend outside the city limits. That's 3.5% of your pay you get to keep. Once the employer withholds the tax money, you'll never see it again, there are no provisions for refunds.

[solibs]

Originally Posted by PeeAye Native

And it's also a one way process, in that you'll never ever get a refund of any money.

If you live in NJ and work in Philly you get to subtract the wage tax from what you owe to the state. When I lived in Collingswood I never paid NJ income tax.

[kfrlisw]

If my son was paid by UPenn for a summer job that was in Cleveland, Ohio, can he get a refund for the city tax paid to Philadelphia?