WebMay 15, 2024 · The wage tax grew over time, reaching its highest rate of 4.96 percent for residents in 1985. The city first reduced it in 1995 under Mayor Ed Rendell, who said at the time that cuts were needed to make Philadelphia competitive and encourage job growth. WebJun 4, 2024 · That means a New Jersey resident who works in Philadelphia and pays city wage taxes can claim a credit for the taxes paid to Philadelphia. Do note there will NOT be a full refund as PA and NJ taxes are computed differently and you only get a credit on double taxed income. To amend a NJ state return. see comment link. **I don't work for TT.
END OF THE PA & NJ TAX RECIPROCITY AGREEMENT - NJCPA
WebJan 28, 2024 · Philadelphia officials are clearing up any confusion about how the city wage tax could affect your refund. So many people are working from home during the pandemic … WebJun 24, 2016 · Its residents earned a total of $3.6 billion in wages in Philadelphia in 2014, officials say, and a change to the Sterling Act could bring $19.3 million more per year to it municipalities and $5.6 million to its school districts. hkallin
NJ Division of Taxation - Income Tax - Credit for Taxes …
WebJan 21, 2024 · Everyone who lives in Philadelphia is subject to the City Wage Tax, regardless of where they work. In addition, non-residents who work in Philadelphia are required to pay the Wage Tax. The rate for residents will be 3.8398 percent as of July 1, 2024, while the rate for non-residents will be 3.4481 percent as of July 1, 2024. Contents [ hide] WebFor every dollar you pay in Philly wage tax, NJ gives you credit towards your NJ state tax bill. Since for 95% of people, the Philly wage tax is higher, you don’t owe any tax to NJ. If you paid $1000 to Philly for wage tax, and owe NJ $800 in taxes, the $1000 tax credit NJ gives you covers the whole thing UsuallyMooACow • 4 mo. ago WebMar 31, 2024 · Double-check to ensure that you have entered the Philadelphia City wage tax correctly. Verify eligibility: Verify with the Philadelphia Department of Revenue if you are … hk alloy