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July 19, 2021

Philadelphia, Pennsylvania nonresident Earnings Tax rates decrease effective July 1, 2021

The City of Philadelphia announced that effective July 1, 2021, the Earnings Tax rate for nonresidents is 3.4481%, down from 3.5019%, and the rate for residents is 3.8398%, a decrease from the previous rate of 3.8712%.

The Philadelphia Net Profits Tax (NPT), which is imposed on the net profits from the operations of a trade, business, profession, enterprise of other activity changes effective July 1, 2021, to 3.4481% for nonresidents and 3.8398% for residents.

The Philadelphia School Income Tax (SIT), which applies to residents who receive certain types of unearned income, is 3.8398% for tax year 2021. This tax does not apply to nonresidents.

For information concerning the requirements for withholding of the Earnings Tax in connection with COVID-19, see EY Tax Alert 2021-0957.


Contact Information
For additional information concerning this Alert, please contact:
Workforce Tax Services - Employment Tax Advisory Services
   • Kristie Lowery (
   • Kenneth Hausser (
   • Debera Salam (


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