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Annual Reconciliation of 2023 Employee Earnings Tax Instructions
Tax regulations and forms are available at www.phila.gov/revenue

Who should file: date will result in the imposition of
interest and penalty.
• Residents of Philadelphia who received
compensation, but Wage Tax was not File and pay Earnings Tax online at the
withheld and remitted on gross Philadelphia Tax Center at
compensation on their behalf, OR tax-services.phila.gov. You will need to
• Nonresidents who have received upload a copy of your W2 and PA
compensation for services performed in Schedule SP (if applicable). After
Philadelphia, but Wage Tax was not submitting the return, print the
withheld or remitted on that confirmation page for your records.
compensation
You will need to create a username and
Gross compensation includes wages, password to file a return. This process can
commissions, tips, bonuses, severance take 10 days or more. But payments can
pay, sick and/or vacation pay, non-cash be made without a username and
compensation, and military reserve pay password using E-Check (free!) or credit or
excluding active duty. Employee Pension debit card (fee). Paper returns are also
plan contributions (such as 401k available at phila.gov/revenue.
contributions) are subject to wage tax and
Do not enclose payments with your tax
are not deductible from gross
return. Additionally, do not staple or
compensation.
submit a photocopy.
Do not file this return if:
Mail signed Earnings Tax returns to
• If your employer withheld too much City of Philadelphia Department of
Wage Tax. Instead, file the Employee Revenue
Wage Tax Refund Petition, OR P.O. Box 1648
• If Line 17 of your return is greater than Philadelphia, PA 19105-1648
Line 16 (100% Employer withheld).
Payment information: If the tax due on
Instead cancel your account by using a
Line 20 of the return is $1 or more
change form, found at phila.gov/tax-
Payments can be made online at
change.
tax-services.phila.gov. You can also print
When and how to file: The 2023 Annual a paper payment voucher from the Tax
Earnings Tax Reconciliation is due by April Center to mail payments. Make checks
15, 2024. Failure to file and pay by this payable to "City of Philadelphia." Include
the last four digits of your Social Security
2023 Earnings Tax Instructions page 1 of 4

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Number on your check or money order. Schedule SP. To receive a decreased
Always include a voucher with your Resident or Nonresident Rate, you must
payment to ensure that it is properly file Schedule SP with the Commonwealth
applied. of Pennsylvania and be approved.
Generally, to be eligible under Schedule
Mail Earnings Tax payments to
SP, you must meet the following income
City of Philadelphia
requirements based on your marital and
Department of Revenue
federal filing status, number of
P.O. Box 389
dependents and income. Include your SP
Philadelphia, PA 19105
Schedule with filing.
Payments can be made in person in the
2023 Schedule SP Eligibility Table
Concourse area of the Municipal Services
Number of Unmarried, Married
Building (1401 John F. Kennedy Blvd.) Dependents Separated (Even if filing
and Deceased separately)
How to update your account 0 $8,750 $15,250
information: If your information has 1 $18,250 $24,750
changed, update your information on the 2 $27,750 $34,250
3 $37,250 $43,750
Change Form found at phila.gov/tax-
4 $46,750 $53,250
change. 5 $56,250 $62,750
6 $65,750 $72,250
Contact revenue@phila.gov or call
7 $75,250 $81,750
215-686-6600 with questions. 8 $84,750 $91,250
9 $94,250 $100,750
Low-income taxpayers are eligible for a
lower rate if they also qualify for PA 40

Interest, Penalties and Costs
All Philadelphia taxes, except Real Estate) bear simple interest. The annual rate is the
Federal Short-Term Rate effective January 1 of each calendar year (26 § USCA 6621 et. seq.)
plus five (5) percentage points. Penalty is at the rate of 1¼% of the unpaid tax for each
month or fraction thereof. For current interest rates, see phila.gov/revenue.

2023 Earnings Tax Instructions page 2 of 4

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Nonresident employee Earning Tax Allocation and/or deductible
business expense report Instructions

Allocated Compensation: A nonresident Form 2106. If unreimbursed employee
of Philadelphia receiving compensation expenses are claimed on Federal Schedule
for services performed both in and out of A, you must also include Schedule A.
Philadelphia may allocate that Photocopies are acceptable. Expenses are
compensation by completing Page 2 of deductible if the total expenses are
the Annual Reconciliation of Earnings Tax reduced by any amounts reimbursed by
Return. your employer, and they are ordinary,
necessary, and reasonable.
You must enclose copies of your W-2
forms containing Federal, Medicare, State Examples of expenses which are not
and Local Wages. If you worked a partial deductible are: transportation to and from
year in Philadelphia, fill in the beginning work, certain educational expenses, dues,
and ending dates. Page 2, Line 2A should subscriptions, and pension plan
only reflect the number of days/hours contributions.
employed.
You must be a Statutory Employee as
Line 2B - Non-workdays/Hours: During a indicated on your W-2 form to claim
period of sickness or disability, if you Federal Schedule C expenses.
receive your regular salary, we consider it Otherwise, you must obtain a Philadelphia
to be taxable compensation. If you receive Business Tax Account Number and file
worker's compensation or a plan in lieu of Business Income & Receipts/Net Profits
worker's compensation where the amount Tax returns. If you are not a Statutory
received is less than your regular salary, Employee and you want to claim Federal
the compensation is not subject to Schedule C expenses, do not file the
Philadelphia Wage Tax. Non-workdays Earnings Tax Reconciliation return.
include Saturday, Sunday, vacation,
Philadelphia residents reporting 100% of
holidays, leave, sick days, and any day
their wages should use the total non-
you do not actually work. Include 104
reimbursed expense amounts from Line
days for Saturday and Sunday if you
2(G)(i) and 4(E)(i) and skip Lines 2(G)(ii),
work a 5-day week.
2(G)(iii), 4(G)(ii), and 4(G)(iii).
Line 2C: If computing overtime, fill in
Line 5 - Total Non-taxable Gross
hours and include overtime hours in Line
Compensation: Enter the total of Line 5
2A.
on Page 1, Line 2.
Line 2G/4E - Expenses: Entries on Lines
Line 6 - Taxable Gross Compensation:
2G and 4E must be supported by Federal
Residents enter Column A on Page 1, Line
2023 Earnings Tax Instructions page 3 of 4

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4, or use Line 5 if you are eligible for the based rate; Column B on Page 1, Line 13
low-Income rate; Column B on Page 1, or Line 14 if eligible for the low-income
Line 7 or Line 8 if eligible for Income- rate.
based rate.

Nonresidents use Column A on Page 1,
Line 10 or Line 11 if eligible for Income-

Wage Taxes Paid or Payable to Other Jurisdictions Within Pennsylvania
Residents of Philadelphia are required to pay Philadelphia Wage Tax on all salaries, wages,
and compensation regardless of where that compensation was earned. Philadelphia
residents employed in other localities in Pennsylvania should instruct their employers not
to withhold other local income taxes from their compensation.

Nonresidents of Philadelphia residing in Pennsylvania and employed within the City of
Philadelphia must pay the Philadelphia Wage Tax on all compensation earned in
Philadelphia. Nonresident compensation not subject to Philadelphia Wage Tax (due to
services rendered outside of Philadelphia) may be subject to taxation in the employee's
home jurisdiction.

Wage Taxes paid or payable to other jurisdictions outside of Pennsylvania
Residents of Philadelphia whose wages are subject to the taxes of local jurisdictions outside
of Pennsylvania, can take a credit against the Earnings Tax due on line 17 of page 1 of the
Earnings Tax Return. Include a copy of the W-2 showing the tax paid to the other
jurisdiction.

Reciprocal Agreements (Employment in/or Residents of States other than
Pennsylvania)
The City of Philadelphia is not a party to any reciprocal tax agreements with any other state
or jurisdiction.

Nonresidents of Pennsylvania cannot claim a tax credit against Philadelphia Wage Tax for
income taxes paid to any other state or political subdivision. Residents of Philadelphia
employed outside of Pennsylvania may be required to file and pay a local income tax in
that jurisdiction in addition to Philadelphia Wage Tax.

2023 Earnings Tax Instructions page 4 of 4

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