Calculate your Philadelphia paycheck after city, state and federal taxes
How much money will actually reach your bank account after working in Philadelphia? Enter your annual salary, gross paycheck or hourly rate to estimate federal income tax, Pennsylvania income tax, Philadelphia Wage Tax, Social Security, Medicare and employee unemployment contributions.
Philadelphia’s Wage Tax is different for residents and nonresidents. Effective July 1, 2026, city residents pay 3.735% and eligible nonresident workers pay 3.425%. The calculator also supports the higher rates in effect during the first half of 2026.
You can adjust for pre-tax benefits, retirement contributions, employment location and pay frequency, then review your estimated annual and biweekly take-home pay.
Philadelphia paycheck calculator for 2026
Choose where you live and work, then enter income and deductions to calculate an estimated paycheck.
How much tax comes out of a Philadelphia paycheck in 2026?
A Philadelphia employee’s paycheck can have five important tax and contribution categories: federal income tax, Pennsylvania personal income tax, Philadelphia Wage Tax, Social Security and Medicare, plus the Pennsylvania unemployment contribution for covered employment.
Philadelphia Wage Tax
City residents generally owe Wage Tax on taxable wages regardless of where they work. Nonresidents generally owe the tax on applicable compensation from work performed in Philadelphia, subject to the City’s work-location rules.
Pennsylvania income tax
Pennsylvania generally taxes taxable employee compensation at 3.07%. Some nonresident employees from reciprocal states can qualify for an exception on employee wages.
Federal income tax
Federal income tax follows progressive brackets and depends on taxable income, filing status, credits and deductions. It is not one flat percentage applied to every paycheck.
FICA and PA unemployment
Most employees pay Social Security and Medicare taxes. Covered Pennsylvania employment also has a 0.07% employee unemployment contribution in 2026.
Philadelphia Wage Tax rates for residents and nonresidents in 2026
Philadelphia’s Wage Tax rate changed on July 1, 2026. The correct rate depends on the date wages are paid and whether the employee is a city resident or a nonresident subject to tax.
| Pay period | Resident rate | Nonresident rate | What changed? |
|---|---|---|---|
| January 1–June 30, 2026 | 3.740% | 3.430% | Rates introduced July 1, 2025 continued through June 2026. |
| July 1–December 31, 2026 | 3.735% | 3.425% | Lower rates began July 1, 2026. |
Official sources: City of Philadelphia Wage Tax (employers) and Philadelphia tax rate history.
Why both 3.74% and 3.735% appear in 2026 searches
Both rates are valid for different parts of 2026. The July 1 reduction was small, but it matters when comparing a June paystub with an August or October paystub. The city also lowered its nonresident rate from 3.43% to 3.425%.
The calculator’s full-year option divides annual wages equally between the first and second half of 2026. Actual tax can differ if you received unequal wages, bonuses or changed residency during the year.
Resident versus nonresident Wage Tax on $75,000
| Tax situation | Annualized tax at July 2026 rate | Biweekly tax equivalent |
|---|---|---|
| Philadelphia resident, fully taxable wages | $2,801.25 | $107.74 |
| Nonresident, all wages taxable to Philadelphia | $2,568.75 | $98.80 |
| Nonresident, 50% of wages taxable to Philadelphia | $1,284.38 | $49.40 |
Annualized comparisons assume all wages were paid at the rate effective July 1, 2026. The 50% example assumes the other wages are legally excluded under the City’s nonresident work-location requirements, not simply that the employee voluntarily worked from home.
How the Philadelphia paycheck calculator determines net pay
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Step 1: Calculate annual gross wages
For salary mode, start with annual wages and add any bonus. For hourly employees, multiply regular pay and eligible overtime by paid weeks. For gross-paycheck mode, multiply the paycheck amount by the number of annual pay periods.
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Step 2: Calculate federal income tax
Subtract eligible federal pre-tax income deductions and the basic federal standard deduction for your filing status. Apply the 2026 progressive tax brackets and any entered nonrefundable federal credits.
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Step 3: Calculate Pennsylvania income tax
Apply 3.07% to estimated Pennsylvania taxable wages. Traditional 401(k) contributions generally remain taxable for Pennsylvania purposes, while certain qualified medical-plan deductions can be excluded. You can disable the PA estimate if you qualify for an applicable reciprocal-state exception.
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Step 4: Calculate Philadelphia Wage Tax
Apply the resident or nonresident Wage Tax rate for the selected 2026 period. Resident wages are generally fully subject to city Wage Tax. Nonresident wages may require allocation to eligible Philadelphia-taxable work.
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Step 5: Add Social Security, Medicare and PA UC
Most employees pay 6.2% Social Security on covered wages up to $184,500 and 1.45% Medicare on covered wages, with possible Additional Medicare Tax at higher incomes. Covered PA employment also has a 0.07% unemployment contribution on gross wages.
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Step 6: Calculate take-home pay
Subtract estimated taxes, elected retirement contributions, qualifying pre-tax benefits, post-tax deductions and additional voluntary withholding. Divide the remaining annual amount by the selected pay frequency.
Philadelphia salary after taxes: $40,000 to $150,000
These examples use a single W-2 employee who resides in Philadelphia, takes the 2026 federal standard deduction, has no credits or additional payroll deductions, and earns all wages at the July–December 2026 city rate. Pennsylvania tax and employee unemployment contributions are included.
| Annual salary | Federal tax | PA income tax | City Wage Tax | Annual net | Biweekly net |
|---|---|---|---|---|---|
| $40,000 | $2,620 | $1,228 | $1,494 | $31,570 | $1,214.23 |
| $50,000 | $3,820 | $1,535 | $1,867.50 | $38,917.50 | $1,496.83 |
| $60,000 | $5,020 | $1,842 | $2,241 | $46,265 | $1,779.42 |
| $75,000 | $7,670 | $2,302.50 | $2,801.25 | $56,436.25 | $2,170.63 |
| $100,000 | $13,170 | $3,070 | $3,735 | $72,305 | $2,780.96 |
| $150,000 | $24,734 | $4,605 | $5,602.50 | $103,478.50 | $3,979.94 |
Annual net also subtracts Social Security, Medicare and the Pennsylvania 0.07% employee unemployment contribution, although those amounts are not separately shown in the table. These are illustrative full-year estimates using the post-July city rate, not a reconstruction of actual January–December withholding.
Example: $75,000 salary in Philadelphia
If a single Philadelphia resident earns $75,000 and has no additional deductions or credits, the simplified annual breakdown is:
| Item | Amount |
|---|---|
| Gross annual wages | $75,000.00 |
| Federal income tax | −$7,670.00 |
| Pennsylvania income tax | −$2,302.50 |
| Philadelphia Wage Tax | −$2,801.25 |
| Social Security | −$4,650.00 |
| Medicare | −$1,087.50 |
| PA unemployment contribution | −$52.50 |
| Estimated annual net | $56,436.25 |
This works out to approximately $4,703.02 monthly or $2,170.63 biweekly. Health insurance, retirement contributions, additional withholding or different state residency rules can change the result.
Do you pay Philadelphia Wage Tax if you work remotely or live outside the city?
Where you live matters, and so does where you perform work. Philadelphia has different rules for residents and nonresidents.
Live in Philadelphia, work in the suburbs
Philadelphia residents generally remain subject to city Wage Tax on taxable wages, even if their workplace is outside Philadelphia. Working in Montgomery, Bucks or Delaware County does not automatically eliminate the city resident tax.
Live outside Philadelphia, work in the city
Nonresident employees are generally subject to Philadelphia Wage Tax on taxable Philadelphia work compensation. The nonresident rate is lower than the resident rate.
Employer-required remote work outside the city
Some nonresidents can exclude wages from work their employer requires them to perform outside Philadelphia. The City uses a requirement-of-employment standard, and employer documentation may be necessary.
Work from home for personal convenience
If a nonresident chooses to work outside Philadelphia for personal convenience, that alone does not generally qualify the wages for a city-tax exclusion. The employer’s actual requirements matter.
New Jersey residents working in Philadelphia
Pennsylvania has a reciprocal compensation agreement with New Jersey. An eligible New Jersey resident working in Pennsylvania can generally arrange not to have Pennsylvania personal income tax withheld on qualifying employee compensation, subject to the relevant rules and Form REV-419.
But Pennsylvania reciprocity does not automatically remove Philadelphia Wage Tax. A New Jersey resident who performs taxable work in Philadelphia may still owe the city’s nonresident Wage Tax. The employee may also have New Jersey income tax obligations, which this calculator does not compute.
Why 401(k), health benefits and other deductions work differently in Philadelphia
Federal, Pennsylvania and Philadelphia tax systems do not always treat payroll deductions in the same way. This is one reason a generic paycheck calculator can produce misleading results for Philadelphia workers.
| Deduction | Federal income tax | PA income tax | Philadelphia Wage Tax |
|---|---|---|---|
| Traditional employee 401(k) | Usually reduces taxable wages | Generally remains taxable | Generally remains taxable |
| Roth 401(k) | After-tax contribution | Generally taxable | Generally taxable |
| Qualifying Section 125 medical benefits | Generally excluded if qualified | Qualifying medical benefits may be excluded | Employee contributions generally taxable |
| Employer-paid qualifying health insurance | Generally excluded under applicable rules | Subject to plan and exclusion rules | May be excluded when City requirements are satisfied |
| Post-tax deductions | Do not reduce taxable wages | Do not reduce taxable wages | Do not reduce taxable wages |
Why traditional 401(k) savings may not reduce Philadelphia Wage Tax
Suppose your annual gross salary is $80,000 and you contribute $5,000 to a traditional 401(k). For federal income-tax planning, the $5,000 contribution generally reduces your wage income subject to federal income tax.
For Pennsylvania income tax and Philadelphia Wage Tax, however, employee retirement contributions generally remain part of taxable compensation. You should not automatically calculate Philadelphia tax on just $75,000.
Pennsylvania employee unemployment contribution
For 2026, covered Pennsylvania employees generally contribute 0.07% of gross wages toward unemployment compensation. That equals $0.70 for every $1,000 of gross wages. It is separate from Pennsylvania personal income tax and has no employee annual wage cap.
How much of a Philadelphia pay raise could you actually keep?
A salary increase can be subject to federal income tax, Pennsylvania income tax, Philadelphia Wage Tax and employee payroll contributions. Compare the extra gross salary with the estimated increase in take-home cash.
Assumes the same residency, work allocation, filing status, benefit deductions and wage-tax period. It estimates annual tax differences rather than exact incremental payroll withholding.
How to check Philadelphia Wage Tax and correct paycheck withholding
If the city tax withheld from your paycheck looks incorrect, the safest approach is to compare your payroll information with the official Philadelphia and Pennsylvania rules.
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Step 1: Gather your latest paystub and W-2
Locate gross pay, pay date, Philadelphia local wages and tax withholding, Pennsylvania taxable wages, federal income tax withholding, Social Security, Medicare and any benefit deductions. Your W-2 may show local wages in Box 18 and local tax withholding in Box 19.
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Step 2: Confirm whether you are a Philadelphia resident or nonresident
Check your actual residential address and the location where work is performed. A city resident is generally subject to city Wage Tax on taxable wages even when working elsewhere. A nonresident should confirm the portion of wages that is subject to Philadelphia rules.
Official reference: Philadelphia Wage Tax requirements.
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Step 3: Check the pay date and correct 2026 rate
Use the City’s published rate table. Pay dated before July 1, 2026 generally uses the earlier 3.74% or 3.43% rate; pay dated from July 1 uses 3.735% or 3.425%, as applicable.
Official reference: Philadelphia tax rate history.
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Step 4: Compare federal and PA withholding
For federal tax, use the IRS Tax Withholding Estimator. For Pennsylvania income tax, review the PA Department of Revenue guidance.
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Step 5: Check exemptions or Pennsylvania reciprocity if applicable
Nonresident employees from reciprocal states, such as New Jersey, may qualify for Pennsylvania wage-tax treatment under the reciprocal agreement. Review official PA documentation, including Form REV-419, before changing PA withholding. This does not automatically remove the Philadelphia city tax.
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Step 6: Contact payroll with the exact discrepancy
Show the pay date, residency status, city taxable wage amount and tax withheld. Ask whether the employer applied the correct city rate and wage-tax base. If the employer does not withhold city Wage Tax at all, review whether you must file and pay the City’s Earnings Tax directly.
Official reference: Philadelphia Earnings Tax instructions.
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Step 7: Request a refund if you paid too much
If you qualify for a Wage Tax refund, visit the City’s official refund page. Prepare the required W-2, location records, employer certification and any applicable Pennsylvania Schedule SP documents before submitting your request.
Official application guidance: Request a Philadelphia Wage Tax refund.
Can you get a Philadelphia Wage Tax refund in 2026?
Some employees can qualify for a refund of Philadelphia Wage Tax they paid. Eligibility depends on the particular refund category and the City’s documentation requirements.
Required work outside Philadelphia
Eligible nonresident workers may request a refund for taxable wages attributed to employer-required work outside city limits. Documentation normally includes employer certification and a record of work dates and locations.
Income-based Wage Tax refund
Some employees approved under Pennsylvania’s tax forgiveness rules may qualify for Philadelphia’s income-based refund, effectively using a reduced 1.5% Wage Tax rate on eligible wages. This is not automatically available to everyone with a low salary.
Applicable local tax payments
Certain Philadelphia residents who pay qualifying income taxes to another local jurisdiction may be entitled to a refund under specific city rules. The documents and eligible tax amounts require separate review.
Overwithholding or wage allocation errors
When an employer withholds more Philadelphia Wage Tax than legally owed, a taxpayer may need to submit the proper city refund petition with supporting payroll records.
How to submit a refund request online
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Open the official Philadelphia Tax Center
Visit tax-services.phila.gov.
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Choose the employee Wage Tax refund option
Use the refund area and select the applicable employee refund request. The City’s online refund process can be started without a Tax Center username or password.
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Prepare and upload the required evidence
Documents may include W-2 information, an employer certificate, work-location records or Pennsylvania tax-forgiveness documentation, depending on the refund category.
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Submit and check status
Follow the portal’s instructions and retain the confirmation for future reference. Use the City Tax Center’s available refund-status tools for updates.
Bonuses, overtime, 1099 work and other tax situations
Bonuses and commissions
Bonuses and commissions are generally treated as taxable wage compensation. The employer may apply federal supplemental withholding rules, while Philadelphia Wage Tax can still apply to the taxable compensation.
Overtime pay in 2026
Overtime generally counts as wages for payroll taxes and city Wage Tax. Certain qualified overtime premium compensation may qualify for a separate federal income-tax deduction, subject to eligibility and phaseout rules. The calculator does not automatically claim that deduction.
Tips and tipped employees
Tips can be taxable wage income and subject to payroll taxes. Some qualified tips may qualify for a special federal deduction under current law, but this does not automatically eliminate all federal payroll, Pennsylvania or Philadelphia tax obligations.
Independent contractors
1099 workers can face federal self-employment tax and different Philadelphia business tax obligations, potentially including Net Profits Tax and Business Income and Receipts Tax. The W-2 employee calculator is not a freelancer tax engine.
Philadelphia sales tax is not paycheck tax
Philadelphia also has sales and use taxes that affect consumer purchases, not salary withholding. The Pennsylvania state sales tax rate is 6%, and Philadelphia adds a 2% local sales tax on covered transactions, for a combined 8%. It should not be deducted as part of your payroll-tax calculation.
Why your actual Philadelphia paycheck might not match the estimate
| Problem | Possible reason | What to check |
|---|---|---|
| City Wage Tax seems too high | Wrong resident/nonresident status, wage allocation or pay-date rate | Compare city taxable wages and the rate applied by payroll. |
| City tax remains after moving outside Philadelphia | Employer records may still show city residency, or your work remains taxable in the city | Update payroll residency and work-location records. |
| Your 401(k) does not reduce PA or city tax | State and city rules differ from federal income tax rules | Compare W-2 federal, state and local wage boxes. |
| Employer withheld PA income tax despite NJ residency | Reciprocity documentation may not have been completed | Review PA REV-419 and applicable reciprocal-state rules. |
| Take-home pay is lower | Extra benefits, after-tax deductions or withholding elections | Check each paystub deduction and its frequency. |
| Bonus check is smaller than expected | Supplemental federal withholding and normal wage/payroll taxes | Ask payroll for the supplemental wage withholding method. |
| No Philadelphia tax appears on the paystub | Employer may not be withholding even when Earnings Tax applies | Review Philadelphia Earnings Tax filing and payment requirements. |
Philadelphia Paycheck Calculator 2026: 10 FAQs
1. What is the Philadelphia Wage Tax rate in 2026?
From January 1 through June 30, 2026, Philadelphia’s Wage Tax rates were 3.74% for residents and 3.43% for nonresidents. Effective July 1, 2026, the rates decreased to 3.735% for residents and 3.425% for nonresidents.
2. How much is $75,000 a year after taxes in Philadelphia?
For a single Philadelphia resident with a $75,000 annual W-2 salary, standard federal deduction, no credits or other payroll deductions, estimated take-home pay is about $56,436.25 annually or $2,170.63 biweekly, using the wage-tax rate effective July 1, 2026. This includes federal, Pennsylvania, city, FICA and PA unemployment deductions.
3. Does Philadelphia have a city income tax on wages?
Yes. Philadelphia has a Wage Tax on taxable employee compensation. City residents generally owe it regardless of work location, while nonresidents may owe it on compensation for work performed in Philadelphia under the City’s rules.
4. Do nonresidents pay Philadelphia Wage Tax?
Yes, eligible nonresidents who work in Philadelphia generally pay the nonresident Wage Tax rate on applicable compensation. From July 1, 2026, the rate is 3.425%. Employer-required work outside Philadelphia may qualify for different treatment when supported by documentation.
5. Do Philadelphia residents pay city tax if they work outside the city?
Generally, yes. Philadelphia residents owe the resident Wage Tax on taxable employment compensation even when their job is outside city limits. Moving, work-location changes and certain credit/refund situations require separate review.
6. Is Pennsylvania state income tax separate from Philadelphia Wage Tax?
Yes. Pennsylvania’s personal income tax rate is 3.07%, while Philadelphia Wage Tax is a separate local tax. A qualifying employee can owe both, in addition to federal income tax and Social Security and Medicare.
7. Does a traditional 401(k) lower Philadelphia Wage Tax?
Generally, no. Employee contributions to a traditional 401(k) typically reduce federal income-taxable wages but remain taxable compensation for Pennsylvania income tax and Philadelphia Wage Tax purposes.
8. Can New Jersey residents avoid Pennsylvania tax when working in Philadelphia?
Eligible New Jersey residents may qualify for Pennsylvania’s reciprocal compensation agreement, which can exempt qualifying wages from Pennsylvania personal income tax. This does not automatically eliminate Philadelphia’s nonresident Wage Tax, and New Jersey tax obligations may still apply.
9. How do I request a Philadelphia Wage Tax refund?
Visit the official Philadelphia Tax Center and choose the employee Wage Tax refund option. Depending on the claim, you may need W-2 forms, employer certification, records of employer-required work outside the city or PA Schedule SP tax-forgiveness documentation.
10. Why is my Philadelphia paycheck different from the calculator result?
Actual payroll can use exact IRS withholding rules, W-4 elections, benefit treatment, bonus withholding, city wage allocation, residency records and year-to-date pay. This tool annualizes income and taxes rather than reproducing every employer payroll calculation.
Official Philadelphia, Pennsylvania and IRS resources for 2026
These official resources support the rates, tax treatment and action steps on this page. You can use the calculator without leaving the article, but consult these sources for forms, refunds, exceptions or official filing obligations.
- Philadelphia Revenue — Wage Tax Resident and nonresident rates, employer withholding, taxable compensation and tax responsibilities.
- Philadelphia — Tax Rate History Official July 1, 2025 and July 1, 2026 Wage Tax rate changes.
- Philadelphia — Earnings Tax Employee tax obligations when City Wage Tax is not withheld.
- Philadelphia — Wage Tax Refunds Refund eligibility, employer documentation and official claims.
- Philadelphia — Wage Tax and Pre-Tax Benefits City rules for employee 401(k), medical, HSA, FSA and other benefit contributions.
- PA Revenue — Personal Income Tax Rates Official Pennsylvania 3.07% individual income tax rate.
- PA Revenue — Gross Compensation Guide Tax treatment of employee retirement contributions, qualifying benefits and reciprocal compensation agreements.
- PA Labor & Industry — Employee UC Withholding Employee unemployment contribution rate and covered gross wages.
- IRS — 2026 Federal Tax Brackets 2026 federal income tax schedules and standard deductions.
- SSA — Social Security Wage Base 2026 taxable wage maximum and Social Security contribution rate.
- IRS — Federal Withholding Estimator Official federal W-4 withholding review tool.
- Philadelphia Tax Center Official city tax filing, payment and refund services.