Philadelphia City, Pennsylvania local income tax
Philadelphia County · tax year 2026
3.735% resident earned income tax
3.735% goes to Philadelphia. People who work in Philadelphia but live elsewhere owe a nonresident rate of 3.425%.
Rates and collector
| PSD code | Resident EIT | Nonresident | LST | EIT collector |
|---|---|---|---|---|
| 510101 | 3.735% | 3.425% | $0 | CITY OF PHILADELPHIA (215) 686-6600 |
Philadelphia is in the Philadelphia City School District and the Philadelphia City. Collector website: www.phila.gov/revenue.
What employers withhold
Pennsylvania employers withhold local earned income tax at the higher of two rates: the total resident rate where the employee lives, or the nonresident rate where they work. For someone who lives and works in Philadelphia, that's 3.735%: about $1,868 a year on $50,000 of wages. Report the employee's PSD code on Form W-2 and on the quarterly return to the collector.
The local services tax (LST) of $0 a year is withheld from people who work in Philadelphia, usually in equal amounts each pay period.
Pennsylvania's Act 32 rules: DCED local withholding tax FAQs.
Running payroll in Philadelphia, PA?
Sources
- Pennsylvania Department of Community and Economic Development, Municipal Statistics (EIT and LST rates) · data as of August 3, 2026 · last checked October 9, 2026
We copy figures from official sources and re-check them against the source before every update. See our methodology. This is general information, not legal advice.