1. What is the Philly Income Calculator?

The Philly Income Calculator estimates take-home pay for Philadelphia residents by calculating net income after deducting federal, Pennsylvania state, and Philadelphia local wage taxes from gross income.

2. How Does the Calculator Work?

The calculator uses the formula:

Where:

• Gross Income — Total annual income before any deductions
• Federal Tax — Calculated using progressive tax brackets
• State Tax — Pennsylvania flat tax rate of 3.07%
• Local Tax — Philadelphia wage tax of 3.79% for residents

3. Understanding Philadelphia Taxes

Details: Philadelphia has one of the highest local wage taxes in the country. This calculator accounts for the specific tax structure that affects Philadelphia residents, including the city wage tax, Pennsylvania state income tax, and federal income tax.

4. Using the Calculator

Tips: Enter your gross annual income in USD. The calculator will automatically compute your estimated federal, state, and local taxes, then display your net take-home pay after all deductions.

5. Frequently Asked Questions (FAQ)

Q1: Are these tax calculations exact?
A: This provides an estimate. Actual taxes may vary based on deductions, credits, and specific circumstances.

Q2: Does this include other deductions?
A: This calculator only includes income taxes. It doesn't account for Social Security, Medicare, health insurance, or other potential deductions.

Q3: Is the Philadelphia wage tax the same for non-residents?
A: No, non-residents who work in Philadelphia pay a different rate (3.44%). This calculator uses the resident rate.

Q4: Are there any tax credits for Philadelphia residents?
A: Yes, there may be various credits available. Consult a tax professional for personalized advice.

Q5: How often are tax rates updated?
A: Tax rates can change annually. This calculator uses current rates but may need updating if tax laws change.