The City of Philadelphia recently lowered its Wage Tax rates, with new rates now in effect as of July 1, 2025. Here’s what employers need to know:
- 3.74% for residents (down from 3.75% in 2024)
- 3.43% for non-residents (down from 3.44% in 2024)
Any paycheck that you issue with a pay date after June 30, 2025, must have the City of Philadelphia Wage Tax withheld at the new rates for residents and nonresidents.
If you have any questions or need help making the adjustment, our team is here for you. Call us at 215-723-4881.