Pennsylvania Local Income Tax Withholding
Reference Number: NFC-25-1751906887
Published: August 4, 2025
Effective: Pay Period 14, 2025
Summary
The local income tax withholding for Philadelphia, Pennsylvania, has changed as follows:
- The resident income tax rate has changed from 3.75% to 3.74%.
- The nonresident tax rate has changed from 3.44% to 3.43%.
All other information remains the same. No action on the part of the employee or the personnel office is necessary.
Tax Formula
-
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.
-
Multiply the adjusted gross biweekly wages by the number of pay dates in the tax year to obtain the gross annual wages.
- 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 |
|---|---|---|---|---|
|
Bethlehem |
42/0660 |
1.0000 |
1.0000 |
DS, R |
|
Caln Township |
42/1044 |
1.0000 |
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 |
1.6000 |
1.0000 |
DS, R |
|
*Philadelphia |
42/6540 |
3.740 |
3.4300 |
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 |
|
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.
- 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.
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.