Beginning Saturday, those who pay Philadelphia’s wage tax will have a little extra in their bank accounts as another incremental cut goes into effect.
Rob Dubow, Philadelphia’s finance director, said the cut coincides with the beginning of the new fiscal year. It will apply to residents and commuters who work in the city.
“The cut will take the resident rate to 3.89 percent and the non-resident rate to 3.46 percent,” he said. “At their height — when this program started — the rate was at 4.96 percent for residents.”
Savings for a taxpayer making $38,000 a year amounts to just $3.70, Dubow said.
But, he said, it’s $400 compared to what the tax took in 1996.
“So, if you looked at any single year, you’re not going to get a big number,” he said. “But it does build up over time.”
Continued wage tax reductions are planned over the next five years.
Check out the charts below to see how much you’ll save this year, and by 2022 when the incremental cut will be complete.