Free Philadelphia Paycheck Calculator 2025 – Easily Estimate Your Net Pay

Working in Philadelphia comes with a unique paycheck structure compared to many U.S. cities. Along with standard federal income taxes, Social Security, and Medicare, Pennsylvania has a flat state income tax, and Philadelphia itself imposes a local wage tax—one of the highest municipal income taxes in the country.

This means that understanding your net pay is crucial if you live or work in the City of Brotherly Love. A Philadelphia Paycheck Calculator simplifies this process by showing exactly how much of your gross salary you’ll take home after all deductions.

How Paychecks Are Calculated in Philadelphia

Federal Taxes

Every paycheck in Philadelphia includes federal withholding:

• Federal income tax – Based on IRS tax brackets, filing status, and W-4 elections.
• Social Security tax – 6.2% of wages, capped annually at the federal wage base.
• Medicare tax – 1.45% on all wages, plus an additional 0.9% for higher earners.

Pennsylvania State Taxes

Pennsylvania uses a flat income tax rate of 3.07%. Unlike progressive tax systems, everyone pays the same percentage regardless of income level. Importantly:

• 401(k) and 403(b) contributions are taxable for Pennsylvania purposes (unlike federal).
• Section 125 health premiums (employer-sponsored health, dental, vision) are generally excluded from PA taxable wages.

Philadelphia Local Wage Tax

Philadelphia has a unique city wage tax:

• Residents pay about 3.75% on all earned income, no matter where the work is performed.
• Non-residents working in Philadelphia pay about 3.44%, but only on wages earned while working in the city.

This means two people earning the same salary could have different net pay depending on whether they live in Philadelphia or commute from outside.

Other Deductions

Common paycheck deductions include:

• Pre-tax deductions: health insurance premiums, HSA/FSA, commuter benefits (federally pre-tax but often taxable in PA/Philly).
• Post-tax deductions: Roth IRA contributions, union dues, or wage garnishments.
• Extra withholding: added by employees who want more tax withheld each paycheck.

Pay Frequency and Its Impact

How often you’re paid affects the size of your check:

• Weekly (52 checks/year) – Smaller checks but more frequent pay.
• Biweekly (26 checks/year) – The most common pay schedule in Pennsylvania.
• Semi-monthly (24 checks/year) – Paid twice a month on set dates.
• Monthly (12 checks/year) – Larger checks, less frequent.

While the total annual net pay is the same, the frequency changes how you manage your monthly cash flow.

Example – Philadelphia Paycheck

Let’s say you earn $65,000 annually as a Philadelphia resident and are paid biweekly:

• Gross paycheck: $2,500
• Federal income tax: ~$300
• Social Security: $155
• Medicare: $36
• Pennsylvania state tax (3.07%): $77
• Philadelphia resident wage tax (3.75%): $94

That adds up to $662 in taxes, leaving you with a net paycheck of about $1,838 every two weeks. Contributions to retirement plans or health benefits would adjust this further.

Typical Paycheck Considerations in Philadelphia

• 401(k) contributions: reduce federal taxable income, but still taxed by PA and Philadelphia.
• Health insurance premiums: usually excluded from PA and city wage tax.
• Commuter benefits: federally pre-tax, but taxable for PA and Philly.
• Bonuses and commissions: subject to federal, state, and Philadelphia withholding.
• Overtime pay: taxed the same as regular wages.

Why Use a Philadelphia Paycheck Calculator?

A paycheck calculator is especially useful for Philadelphia workers because:

• The city wage tax significantly impacts take-home pay.
• You can see the difference between being a resident vs non-resident commuter.
• It helps you understand how much 401(k) or health contributions change your net pay.
• You can preview your paycheck when switching jobs or negotiating salary.
• It supports smarter budgeting for rent, commuting, and daily living costs in Philadelphia.

FAQs – Philadelphia Paychecks

1. Does Philadelphia have a local income tax?
Yes. Residents pay about 3.75% and non-residents working in the city pay about 3.44%.

2. What is Pennsylvania’s state income tax rate?
It’s a flat 3.07%, the same for all income levels.

3. Do Philadelphia residents and non-residents pay the same wage tax?
No. Residents pay a higher rate, and non-residents pay a slightly lower rate only on work performed in the city.

4. Are 401(k) contributions taxed in Pennsylvania and Philadelphia?
Yes. Retirement plan contributions reduce federal taxable income but are taxable for PA and city wage tax.

5. What deductions reduce Pennsylvania and Philadelphia taxable wages?
Section 125 health premiums are typically excluded, but HSA/FSA and commuter benefits remain taxable.

6. What taxes come out of a Philadelphia paycheck?
Federal income tax, Social Security, Medicare, Pennsylvania state tax, and Philadelphia wage tax.

7. Can bonuses or overtime be taxed differently?
Bonuses are withheld at supplemental rates but still subject to PA and city wage tax. Overtime is taxed the same as regular wages.

8. Why is my Philadelphia paycheck smaller than expected?
The Philadelphia wage tax adds a significant reduction compared to other cities.

9. Can I lower my Philadelphia wage tax?
No. The wage tax applies broadly, but you can reduce overall taxable income with federal pre-tax benefits.

10. What’s the most common pay frequency in Pennsylvania?
Biweekly paychecks are the most common among employers.