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.
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