Pennsylvania Local Income Tax Withholding

Reference Number: NFC-23-1690565676
Published: August 1, 2023
Effective: Pay Period 14, 2023

Summary

The local income tax rate for the city of Philadelphia, Pennsylvania, has changed from 3.79 percent to 3.75 percent.

All other information remains the same. No action on the part of the employee or the personnel office is necessary.

Tax Formula

  1. Subtract the nontaxable biweekly Federal Employees Health Benefits (FEHB) payment from the gross biweekly wages.

Note: The biweekly FEHB payment is taxable income for the city of Philadelphia; therefore, do not subtract the biweekly FEHB payment when computing Philadelphia city income tax.

  1. Multiply the adjusted gross biweekly wages by the number of pay dates in the tax year to obtain the gross annual wages.
  2. Calculate the gross annual wages by applying the following guidelines to determine the annual Pennsylvania city income tax withholdings:

City

State/City Codes

Resident Percentage

Nonresident Percentage

City Tax Status
(Duty Station = DS;
Resident = R)

Bethlehem

42/0660

1.0000

1.0000

DS, R

Bradford (voluntary)

42/0840

1.0000

1.0000

N/A

Caln Township

42/1044

1.0000

1.0000

DS, R

Camp Hill (voluntary)

42/1060

2.0000

1.0000

N/A

Carlisle

42/1100

1.6000

1.0000

DS, R

Erie

42/2640

1.6500

1.6500

DS, R

Fairview Township

42/2769

1.0000

1.0000

DS, R

Greene Township

42/3343

1.7000

1.0000

DS, R

Gregg Township

42/3396

1.8000

1.0000

DS, R

Hanover

42/3470

1.0000

1.0000

DS, R

Harrisburg

42/3500

2.0000

1.0000

DS, R

Horsham Township

42/3740

1.0000

1.0000

DS, R

Kelly Township

42/4053

2.0000

1.0000

DS, R

Lancaster

42/4180

1.1000

1.0000

DS, R

Monroeville

42/5413

1.5000

1.0000

DS, R

*Philadelphia

42/6540

3.750

3.4400

DS, R

Pittsburgh

42/6600

3.0000

1.0000

DS, R

Plains Township

42/6615

1.0000

1.0000

DS, R

Reading

42/6900

3.6000

1.0000

DS, R

Scranton

42/7460

3.4000

1.0000

DS, R

South Lebanon Township

42/7894

1.0000

0.0000

DS, R

South Park Township

42/7912

1.0000

1.0000

DS, R

Susquehanna Township

42/8280

1.0000

1.0000

DS, R

Tinicum Township

42/8445

1.0000

1.0000

DS

Tredyffrin Township

42/8545

0.0000

0.0000

DS, R

Warminster Township

42/8845

1.0000

1.0000

DS, R

Wilkes-Barre

42/9340

3.0000

1.0000

DS, R

York Township

42/9610

1.0000

1.0000

DS, R

*The above Philadelphia rates apply to employees who either work or live in Philadelphia and override any Act 32 Earned Income Tax rates that apply to other Political Sub Divisions in Pennsylvania.

Note: City tax is mandatory unless otherwise indicated.

  1. Divide the annual Pennsylvania city income tax withholding calculated in step 3 by the number of pay dates in the tax year to obtain the biweekly Pennsylvania city income tax withholding.

Resources

To view the updated tax formula, go to the HR and Payroll Clients page from the MyNFC drop-down menu on the National Finance Center (NFC) Home page. Select the Publications tab and select Taxes from the Publications Library to launch the tax map. Select the desired State from the map provided for the formula.

Previous Tax Bulletin

Inquiries

For questions about NFC processing, authorized Servicing Personnel Office representatives should contact the NFC Contact Center at 1-855-NFC-4GOV (1-855-632-4468) or via the customer service portal at ServiceNow Portal for Federated Users and at ServiceNow Portal for Non-Federated Users.