Payments, assistance & taxes

Earnings Tax (employees)

Due date

Quarterly, plus an annual reconciliation.

For specific deadlines, see important dates below.

Tax rate
3.8907%

for residents, and 3.4741% for non-residents

Who pays the tax

The Earnings Tax is a tax on salaries, wages, commissions, and other compensation paid to a person who works or lives in Philadelphia.

You must pay the Earnings Tax if you are a:

  • Philadelphia resident with taxable income who doesn’t have the City Wage Tax withheld from your paycheck.
  • A non-resident who works in Philadelphia and doesn’t have the City Wage Tax withheld from your paycheck.

The most common situation for filing and paying the Earnings Tax is when a Philadelphia resident works for an out-of-state employer. Out-of-state employers are not required to withhold Philadelphia’s Wage Tax if they don’t have a physical location within Pennsylvania or aren’t subject to the Business Income and Receipts Tax. When no Wage Tax is withheld, Philadelphia residents must file and pay the Earnings Tax themselves.

The City of Philadelphia is not a party to any reciprocal tax agreements with any other municipality. Residents of Philadelphia who are employed out-of-state may be required to file and pay a local income tax in that jurisdiction in addition to the Philadelphia Earnings Tax. Non-residents of Pennsylvania can’t claim a tax credit against Philadelphia Earnings Tax for income taxes paid to any other state or political subdivision.

If you are self-employed, you pay the following taxes instead of the Earnings Tax:

Important dates

The Earnings Tax must be filed and paid quarterly, along with an annual reconciliation at the end of each calendar year.

For 2017, the quarterly due dates are:

  • Q1: May 1, 2017
  • Q2: July 31, 2017
  • Q3: October 31, 2017
  • Q4: January 31, 2018

The annual reconciliation period due date for 2016 is April 17, 2017.

The annual reconciliation period due date for 2017 is April 16, 2018.

Tax rates, penalties, & fees

How much is it?

Effective July 1, 2017
3.8907% (Resident)
3.4654% (Non-Resident)

Effective July 1, 2016
3.9004% (Resident)
3.4741% (Non-Resident)

July 1, 2015—June 30, 2016
3.9102% (Resident)
3.4828% (Non-Resident)


What happens if you don't pay on time?

You will be charged interest and penalties when you don’t pay taxes on time.

Effective January 1, 2016, for all taxes except Liquor and Real Estate, the monthly interest rate is 0.5%.

Effective January 1, 2014 through December 31st, 2015, for all taxes except Liquor and Real Estate, the monthly interest rate is .416%

Penalties accrue at 1.25% of the unpaid tax for each month or fraction thereof.

For more information about interest and penalty rates, visit the interest, penalties, and fees page.

Discounts & exemptions

Are you eligible for a discount?

No discounts are available for the Earnings Tax.


Can you be excused from paying the tax?

You don’t have to pay the Earnings Tax if you:

  • Have the City Wage Tax withheld from your paycheck.
  • Are an individual or part of a partnership that files and pays the Net Profits Tax.

How to pay

To file and pay the Earnings Tax online:

  1. Apply for an Earnings Tax account number.
  2. File and pay quarterly on the City’s eFile/ePay site.
  3. File and pay the annual reconciliation on the same site.

To file and pay the Earnings Tax by mail:

1
Fill out an Earnings Tax account application form.

The account application form is included in the resource links on this page.

2
Mail the application form to:
Philadelphia Dept. of Revenue
1401 John F. Kennedy Blvd.
Philadelphia, PA 19102
3
File returns and send quarterly payments to:
Philadelphia Dept. of Revenue
P.O. Box 1648
Philadelphia, PA 19105‐1648
4
File and pay the annual reconciliation by mailing it to:
Philadelphia Dept. of Revenue
P.O. Box 1648
Philadelphia, PA 19105‐1648

Tax code

02

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