Pennsylvania Payroll Tax Rates in 2014
Pennsylvania Income Tax Rate
The withholding rate for 2014 remains at 3.07%
Pennsylvania Unemployment Tax
The employee rate for 2014 is 0.07%. Wages subject to unemployment contributions for employees are unlimited. Wages subject to unemployment contributions for employers increase to $8,750.
City of Philadelphia Wage Tax
Effective January 1 through June 30, 2014 tax rates are 3.924% for Philadelphia residents and 3.495% for non-residents. Effective July 1 through December 31, 2014 the rates decrease to 3.92% for city residents and 3.4915% for non-residents.
Pennsylvania Local Tax Rate
Act 32 is a law that reforms and standardizes the local earned income tax system, which requires uniform withholding of earned income taxes and remittance to a single local collector or Tax Officer. The Act applies to the earned income taxes levied ad collected after December 31, 2011. Employers must begin to withhold the local EIT from employees on January 1 2012. For more information visit www.newpa.com.
2014 Wage Tax Rate Summary for Pennsylvania
| 2014 Current Year | 2013 Prior Year | |
| Minimum Wage | $7.25 | $7.25
|
| Unemployment
Maximum taxable earnings Employee deduction |
$8,750 0.07% |
$8,500 0.07%
|
2014 Wage Tax Rates for the City of Philadelphia
| City Wage Tax | 2014 Current Year | 2013 Prior Year | |
|
Residents Non-residents |
January 1 | July 1 |
3.928% 3.4985%
|
| 3.924%
3.495% |
3.92%
3.4915% |
||
