How Philadelphia take-home pay works
Your Philadelphia take-home pay is your gross salary minus federal income tax, Pennsylvania state income tax, Philadelphia city/county income tax, Social Security (6.2%), and Medicare (1.45%). The calculator subtracts each in order and divides by your pay frequency to show net pay per paycheck.
Take-home = Gross − Federal − Pennsylvania State − Philadelphia Local − FICA (7.65%)
Population: 1,574,281 city / 6,329,118 metro (Census estimates for July 2025). Philadelphia is one of the largest US cities and has unique tax rules described below.
Philadelphia local income tax
Philadelphia's Wage Tax fell on July 1, 2026 to 3.735% for residents and 3.425% for non-residents (from 3.74% and 3.43%), part of a five-year cut. Withheld by employer. Combined with Pennsylvania's 3.07% state tax, residents pay 6.805% on wages, among the highest local tax rates of any major US city.
Local tax form: Philadelphia Wage Tax
Pennsylvania state income tax
Pennsylvania uses a flat 3.07% state income tax rate.
For full Pennsylvania state tax details, deductions, and exemptions, see the Pennsylvania Paycheck Calculator.
Take-home pay at common Philadelphia salaries
Estimated annual net pay for a single filer in Philadelphia, including federal + state + city taxes and FICA. Use the calculator above for personalized figures.
| Gross | Annual Net | Bi-weekly | Effective Rate |
|---|---|---|---|
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Income vs cost of living in Philadelphia
Understanding your paycheck in Philadelphia means looking beyond the gross number, the cost of living here directly determines what your take-home pay actually buys.
| Median household income | $60,521/year |
| Median earnings, people with earnings | $43,815/year |
| Price level, metro area (BEA 2024) | 102.6 (U.S. = 100) |
| Median rent, 1 bedroom | $1,291/month |
| Median rent, 2 bedrooms | $1,625/month |
Income and rent: Census Bureau, American Community Survey 2024 1-year estimates for the city of Philadelphia. Rent is median gross rent, rent plus utilities, across all renters, long-standing and rent-regulated leases included, so a new lease usually costs more. Price level: Bureau of Economic Analysis regional price parities for the Philadelphia-Camden-Wilmington, PA-NJ-DE-MD metro area.
Tax highlight
Philadelphia's 3.735% Wage Tax (effective July 2026) makes it among the highest-taxed major US cities for wage earners. A single filer living in the city and earning $80,000 pays city wage tax (about $2,988) + PA state tax and unemployment insurance ($2,512) = $5,500 combined local/state. Many professionals choose to live in the suburbs and commute, paying only 3.425% non-resident wage tax and saving $248 a year at $80,000, or $620 at $200,000.
Philadelphia local economy & job market
Philadelphia's economy is built on healthcare, education ('Eds and Meds'), and financial services. The University of Pennsylvania and Penn Medicine are a major employer. Children's Hospital of Philadelphia (CHOP) is another large employer. Jefferson Health, Temple University Health, and Drexel University Medicine are other large employers. Comcast (HQ) is a major employer in Philadelphia, primarily in the Comcast Tower. Vanguard, with a large campus in nearby Malvern, is a major financial-services employer. Lincoln Financial, Independence Blue Cross, and many other financial firms have major Philly presence. Pharmaceutical industry: GlaxoSmithKline, Merck (Trenton-Philly area), Spark Therapeutics, and many smaller biotechs. Defense and aerospace at the Navy Yard (former naval base now redeveloped). Tech is growing, Comcast's tech division, plus tech startups in University City and South Philadelphia. The Schuylkill Yards development is bringing more tech companies to the city. Philadelphia historically lost population to suburbs; Census Bureau estimates put the city's change from April 2020 to July 2025 at -2%.
Top employers & industries in Philadelphia
Major employers
- University of Pennsylvania (Penn Medicine)
- Jefferson Health
- Comcast
- Children's Hospital of Philadelphia (CHOP)
- Temple University
Key industries
- Healthcare & Education
- Media & Telecommunications
- Finance
- Government
What jobs pay in the Philadelphia area
Annual wages across the Philadelphia-Camden-Wilmington, PA-NJ-DE-MD metro area from the Bureau of Labor Statistics (May 2025). Half of the workers in each job earn between the two figures in the middle column. Bonuses paid as wages are included; stock awards and self-employment are not.
| Occupation | Middle half earns | Median |
|---|---|---|
| All occupations | $37,440 – $84,780 | $54,310 |
| Registered Nurses | $90,190 – $112,970 | $101,180 |
| Software Developers | $103,920 – $165,140 | $133,040 |
| Accountants and Auditors | $73,370 – $110,420 | $85,990 |
| Elementary School Teachers, Except Special Education | $61,300 – $97,410 | $78,570 |
| Electricians | $57,900 – $104,230 | $74,590 |
| Heavy and Tractor-Trailer Truck Drivers | $54,310 – $70,740 | $59,370 |
| Retail Salespersons | $29,830 – $37,830 | $34,810 |
| Lawyers | $119,970 – $220,630 | $170,660 |
| Medical Scientists, Except Epidemiologists | $81,200 – $162,730 | $102,950 |
Source: BLS Occupational Employment and Wage Statistics, May 2025, for the whole metro area. Use the calculator above for take-home pay at any of these salaries.
Philadelphia housing market
Philadelphia housing is among the most affordable of major Northeast/Mid-Atlantic metros: the median value of owner-occupied homes in the city is $253,600, as owners estimate it (Census Bureau, 2024). Rittenhouse Square, Society Hill, and Old City are luxury Center City neighborhoods, far above the city median. Fishtown and Northern Liberties have gentrified rapidly. South Philly, West Philly, and parts of North Philly remain more affordable. The Main Line (suburbs along the SEPTA Paoli/Thorndale line, Ardmore, Wayne, Bryn Mawr, Villanova, Haverford) is wealthy. Chestnut Hill is a charming northwest enclave. Property tax is moderate: the median bill in the city is $2,100, about 0.8% of the median home value, against 1.2% statewide (Census Bureau, 2024). New construction is happening in Northern Liberties, Fishtown, Brewerytown, and Schuylkill Yards. The historic rowhouse stock is unique to Philadelphia and offers character at lower prices than equivalent footage in Manhattan or Boston townhouses.
Commute & transportation in Philadelphia
Philadelphia's SEPTA operates subway (Broad Street and Market-Frankford lines), commuter rail, trolleys, and buses. The city connects to NYC and DC via Amtrak, including the Acela. The mean one-way commute is 33 minutes (Census Bureau, 2024, workers who don't work from home). Suburban commuters from Delaware County, Montgomery County, and South Jersey typically drive or use Regional Rail.
Notable neighborhoods in Philadelphia
Philadelphia tax nuances you should know
Philadelphia residents face one of the highest local income taxes of any major US city, 3.735% Philadelphia Wage Tax (effective July 2026, down slightly from 3.74%) on top of PA's 3.07% flat state tax. Non-residents working in Philly pay 3.425% (non-resident rate). Combined PA + Philly resident rate of 6.805% is among the highest local tax burdens in the US. Philadelphia also has a Net Profits Tax for self-employed individuals (3.74% for residents and 3.43% for non-residents in tax year 2025), Business Income & Receipts Tax (BIRT, for businesses), and a School Income Tax on residents' unearned income such as dividends and short-term capital gains (3.74% for tax year 2025). Combined sales tax is 8% (6% PA state + 2% Philly local). PA is unique in NOT taxing retirement income, pensions, IRA distributions, Social Security all exempt, making PA highly attractive for retirees. PA has no estate tax, but it does tax inheritances, at a rate that depends on the heir's relationship to the deceased. Many high earners live in suburbs (Lower Merion Township, Tredyffrin Township, etc.) and pay only the 3.425% non-resident wage tax instead, a moderate but real saving of $620 a year on $200,000 of wages. Some Center City BigLaw and finance professionals time their Center City moves around bonus events to manage wage tax exposure.
Philadelphia paycheck & tax tips
- Maximize pre-tax deductions: 401(k) contributions (up to $24,500 in 2026), HSA ($4,400 single / $8,750 family), FSA ($3,400) and commuter benefits (up to $340/month) all reduce your taxable income before Pennsylvania state and federal income tax is calculated.
- Check your W-4 withholding: After major life changes (marriage, a new dependent, second job), update your W-4 to avoid owing a large tax bill or over-withholding. Use our W-4 Calculator to find the right allowances.
- Pay frequency matters: Bi-weekly earners get 26 paychecks per year (2 months with 3 paychecks). Budget based on monthly income, not per-paycheck amount, to avoid surprises in 3-paycheck months.
- Confirm your employer withholds Philadelphia local tax: Most employers handle this automatically, but contract and self-employed workers must make quarterly estimated payments directly to the city (Philadelphia Wage Tax).
- Track FICA limits: Social Security (6.2%) only applies to the first $184,500 of wages in 2026. Once you cross that threshold, your paycheck increases by roughly 6.2% for the rest of the year, plan ahead if you depend on that boost.
- Self-employed in Philadelphia? You owe the full 15.3% self-employment tax (employee + employer FICA portions) instead of 7.65%. The calculator above shows employee-side FICA, self-employed workers should add the employer half when budgeting.
Who should move to Philadelphia?
Philadelphia is the right move for: healthcare professionals at Penn Medicine, CHOP, Jefferson, Temple, career-defining academic medical institutions; pharma/biotech researchers (GSK, Merck, smaller biotechs); asset management professionals at Vanguard or other Philly-area firms; lawyers at Center City BigLaw firms; Comcast tech and media employees; first-time homebuyers seeking Northeast access at affordable prices. Less ideal for: extremely high earners (the 3.735% city wage tax is among the highest local taxes in major US cities); those uncomfortable with Philly's higher crime rates compared to NYC or DC; or anyone wanting Boston's biotech concentration. Philly's combination of cultural depth, world-class healthcare/education, lower cost than NYC/DC, and easy access to NYC, DC, and the Jersey Shore make it underrated.
Philadelphia paycheck frequently asked questions
Why does Philadelphia have such a high wage tax?
Philadelphia's Wage Tax has existed since 1939, one of the oldest city income taxes in the US. The city relies heavily on it because Pennsylvania law limits Philadelphia's ability to raise property taxes. The non-resident rate (3.425%) is lower to encourage people to work in the city even if they live in the suburbs.
Is it better financially to live in the suburbs and commute into Philadelphia?
Often yes for high earners. Suburb residents pay PA state tax (3.07%) + non-resident Philly wage tax (3.425%) = 6.495% vs city residents at 6.805% (3.07% PA + 3.735% Philly). The 0.31% difference saves $620/year on $200K. More significantly, suburban municipalities offer lower crime rates, better public schools, and comparable or lower housing costs.