Frequently asked questions
- What is the Philadelphia EIT?
- Earned Income Tax. Philadelphia residents pay 3.74% (effective 2025-07-01 through 2026). Non-residents who work in Philadelphia pay 3.43%. Both apply to wages and self-employment income. Unlike most PA municipalities, Philadelphia is outside the PA Act 32 system.
- How does Philadelphia EIT differ from PA Act 32 EIT elsewhere in Pennsylvania?
- Act 32 applies to every other PA municipality and school district. Rates vary by Tax Collection District (TCD) and PSD code, commonly 1-2%. Philadelphia is exempt from Act 32 and has its own rates published by the City of Philadelphia. The "source rule" (work-state credit) is different; Philadelphia EIT generally beats your home-municipality EIT.
- Does the calculator include the Philadelphia EIT?
- The PayslipIQ Paycheck Calculator handles federal, FICA, and PA state flat 3.07% in the main tool. For the Philadelphia EIT specifically, use the Local Tax Estimator below: select "PA EIT municipality" and enter 3.74% (resident) or 3.43% (non-resident).
- I live in NJ but work in Philadelphia — what do I pay?
- You pay Philadelphia non-resident EIT (3.43%) on your Philadelphia wages. NJ then credits you for the Philadelphia tax paid against your NJ state income tax under the NJ-PA reciprocity rules (but those rules have shifted over the years — verify with a CPA in any year you have multi-state work).
- Are there other Philadelphia payroll lines?
- Most Philadelphia workers see federal, FICA, PA state 3.07%, Philadelphia EIT, and standard pre-tax deductions (401k, health). Self-employed Philadelphia residents owe a separate Net Profits Tax / Business Income & Receipts Tax — those are not employee payroll deductions.
USA · PHILADELPHIA · 2026 · Educational only
Philadelphia Paycheck Calculator
Philadelphia is outside the PA Act 32 system. Philadelphia residents pay 3.74% Earned Income Tax; non-residents who work in Philadelphia pay 3.43% (both effective 2025-07-01 through 2026). The Pennsylvania state flat rate of 3.07% applies first.
Step 1 — federal + FICA + PA flat 3.07%
Paycheck calculator
Enter gross, state, and filing status. Estimates only.
Estimated take-home (per period)
$2,358.02
Estimated take-home (annual): $61,308.40
Educational only, not tax, legal, financial, or payroll advice. Verify with your payroll team, a CPA, the IRS, or your state tax authority.
Step 2 — add the Philadelphia EIT
Select "PA EIT municipality" in the dropdown below and enter your applicable Philadelphia rate: 3.74% if you live in Philadelphia (regardless of where you work), or 3.43% if you work in Philadelphia but live outside.
Local tax estimator
NYC resident income tax (top marginal). Nonresidents who work in NYC do not pay this.
Estimate only. Local income tax rules vary by residency, work location, school district, and special assessments. Some localities (NYC, Yonkers) tax residents but not commuters; others (KC, STL, Wilmington) tax both. Verify with the city revenue agency or your payroll team before relying on a number. This calculator does not include state income tax, federal income tax, Social Security, or Medicare. Pair it with theGross to Net Paycheck Calculatorfor a complete picture.
Source
Philadelphia EIT 2026 rates: 3.74% resident / 3.43% non-resident, effective 2025-07-01 through 2026. Source: City of Philadelphia — Earnings Tax (Employees).
Common questions
- What is the Philadelphia EIT?
- Earned Income Tax. Philadelphia residents pay 3.74% (effective 2025-07-01 through 2026). Non-residents who work in Philadelphia pay 3.43%. Both apply to wages and self-employment income. Unlike most PA municipalities, Philadelphia is outside the PA Act 32 system.
- How does Philadelphia EIT differ from PA Act 32 EIT elsewhere in Pennsylvania?
- Act 32 applies to every other PA municipality and school district. Rates vary by Tax Collection District (TCD) and PSD code, commonly 1-2%. Philadelphia is exempt from Act 32 and has its own rates published by the City of Philadelphia. The "source rule" (work-state credit) is different; Philadelphia EIT generally beats your home-municipality EIT.
- Does the calculator include the Philadelphia EIT?
- The PayslipIQ Paycheck Calculator handles federal, FICA, and PA state flat 3.07% in the main tool. For the Philadelphia EIT specifically, use the Local Tax Estimator below: select "PA EIT municipality" and enter 3.74% (resident) or 3.43% (non-resident).
- I live in NJ but work in Philadelphia — what do I pay?
- You pay Philadelphia non-resident EIT (3.43%) on your Philadelphia wages. NJ then credits you for the Philadelphia tax paid against your NJ state income tax under the NJ-PA reciprocity rules (but those rules have shifted over the years — verify with a CPA in any year you have multi-state work).
- Are there other Philadelphia payroll lines?
- Most Philadelphia workers see federal, FICA, PA state 3.07%, Philadelphia EIT, and standard pre-tax deductions (401k, health). Self-employed Philadelphia residents owe a separate Net Profits Tax / Business Income & Receipts Tax — those are not employee payroll deductions.
Related
PayslipIQ provides educational information and estimated calculations only. It does not provide tax, legal, financial, accounting, employment, benefits, or payroll advice. PayslipIQ is not a CPA firm, law firm, financial advisor, payroll provider, or tax authority. Always verify your paycheck, deductions, withholdings, and tax position with your employer's payroll department, a qualified CPA, the IRS, your state tax authority, or another appropriately qualified professional. Calculations are estimates; your actual paycheck may differ based on factors specific to your employer, location, benefits elections, and personal tax situation.