Philadelphia, PA Taxes 2025
Complete local tax guide and OBBBA calculator
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Philadelphia Tax Overview 2025
Philadelphia has a significant local wage tax. OBBBA federal deductions help offset this.
Local Income Tax
3.79%
City/county rate
Sales Tax
8.00%
State + local
Property Tax
1.36%
Effective rate
Median Home
$220,000
Home value
State Tax Information
Philadelphia is located in Pennsylvania (3.07% state income tax)
💼 Philadelphia Local Income Tax
Philadelphia imposes a local income tax of 3.79% on residents. This is in addition to any state income tax you may owe to Pennsylvania.
Local income taxes are common in Ohio, Pennsylvania, and a few other states. They're typically withheld from your paycheck if you work in Philadelphia, regardless of where you live.
Total Income Tax Burden in Philadelphia
🛒 Philadelphia Sales Tax 2025
The combined sales tax rate in Philadelphia is 8.00%. This includes both the Pennsylvania sales tax and any local sales taxes.
Sales tax applies to most retail purchases in Philadelphia. Some items like groceries, prescription medications, and clothing may be exempt or taxed at reduced rates depending on Pennsylvania law.
Sales Tax Breakdown
Sales Tax Examples
| Purchase Amount | Sales Tax | Total |
|---|---|---|
| $50 | $4.00 | $54.00 |
| $100 | $8.00 | $108.00 |
| $500 | $40.00 | $540.00 |
| $1,000 | $80.00 | $1,080.00 |
🏠 Philadelphia Property Tax 2025
The average effective property tax rate in Philadelphia is 1.36%. Based on the median home value of $220,000, the typical homeowner pays approximately $2,992 per year in property taxes.
Property taxes fund local services including schools, police, fire departments, roads, and parks. Rates vary by specific location within Philadelphia based on school district and other taxing authorities.
Estimated Annual Property Tax in Philadelphia
| Home Value | Annual Tax | Monthly | SALT Deductible? |
|---|---|---|---|
| $200,000 | $2,720 | $227 | ✓ Yes |
| $300,000 | $4,080 | $340 | ✓ Yes |
| $400,000 | $5,440 | $453 | ✓ Yes |
| $500,000 | $6,800 | $567 | ✓ Yes |
| $750,000 | $10,200 | $850 | ✓ Yes |
| $1,000,000 | $13,600 | $1,133 | ✓ Yes |
💡 SALT Tip: Under the OBBBA, you can deduct up to $40,000 in state and local taxes (SALT) on your federal return. This includes property taxes, state income taxes, and local income taxes.
💰 Philadelphia Cost of Living
Housing Costs
Tax Summary
OBBBA Tax Benefits for Philadelphia Residents
The local wage tax makes every federal deduction more valuable.
The One Big Beautiful Bill Act (OBBBA), signed into law on July 4, 2025, introduced several federal tax deductions that can significantly reduce your tax burden as a Philadelphia resident.
Available OBBBA Deductions:
Calculate Your Philadelphia Tax Savings
Use our free OBBBA calculator to see exactly how much you could save on your 2025 federal taxes as a Philadelphia resident.
Calculate My SavingsFrequently Asked Questions
What is the sales tax in Philadelphia?
The combined sales tax rate in Philadelphia is 8.00%. This includes both state and local sales taxes.
Does Philadelphia have a local income tax?
Philadelphia has a local income tax of 3.79%. This is in addition to any state and federal income taxes.
What is the property tax rate in Philadelphia?
The average effective property tax rate in Philadelphia is 1.36%. On a home worth $220,000, you'd pay approximately $2,992 per year.
How do OBBBA deductions benefit Philadelphia residents?
The local wage tax makes every federal deduction more valuable. You can use our free calculator to estimate your total savings from tips, overtime, auto loan interest, SALT, and senior bonus deductions.