City Council Debates the 0.05% Wage Tax Reduction
At 3.75%, Philadelphia's wage tax remains the highest flat municipal income tax in the nation. The proposed reduction to 3.70% for residents is largely symbolic, saving the median earner roughly $35 annually. However, business groups argue it signals a pro-growth shift.
The Remote Work Loophole
Non-residents working for Philadelphia companies are exempt from the wage tax for days worked entirely outside the city. This has blown a $120M hole in the city budget since 2020.
Calculate Your Wage Tax Liability