The City of Philadelphia Department of Revenue announced a wage tax reduction which will take effect on July 1, 2017.

• Residents of Philadelphia will pay a wage tax rate of 3.8907% (.038907).
• Non-residents of Philadelphia who are subject to the Philadelphia City wage tax will pay 3.4654% (.034654).
• Prior to this, Philadelphia’s wage tax rate was 3.9004.
  
  

Paychecks issued after June 30, 2017 must have the Philadelphia City wage tax withheld at the new rate.

Disclaimer: This alert is for informational purposes only and does not constitute professional advice. Information contained in this communication is not intended or written to be used as tax advice, and cannot be used by the recipient to avoid penalties that may be imposed under the Internal Revenue Code.  We strongly advise you to seek professional assistance with respect to your specific issue(s).