TAXES 16-05, Pennsylvania Cities Income Tax Withholding

Published: February 1, 2016
Effective: Pay Period 01, 2016

Summary

This bulletin supersedes TAXES 15-36, Pennsylvania Cities Income Tax Withholding dated September 14, 2015. The city of South Park Township, Pennsylvania is being added to the Tax Withholding table.

No action on the part of the employee or the personnel office is necessary.

Tax Formula

  1. Subtract the nontaxable biweekly Federal Employees Health Benefits (FEHB) payment from the gross biweekly wages.

    Note: The biweekly FEHB payment is taxable income for the city of Philadelphia; therefore, do not subtract the biweekly FEHB payment when computing Philadelphia city income tax.

  2. Multiply the adjusted gross biweekly wages by 26 to obtain the annual wages.
  3. Multiply the gross annual wages for resident or nonresident to determine the annual Pennsylvania city income tax withholdings:

    Note: Below are the resident and nonresident rates the National Finance Center will withhold for each city. Employees can refer to www.newpa.com to obtain earned income tax rates of other Pennsylvania cities and choose an additional withholding amount in addition to the rates below if applicable. Additional withholding amounts are done on a voluntary basis.

    Note: Act 32 is not applicable to the city of Philadelphia.

    Compute the City Income Tax Withholding For:

    State/City Codes

    Resident Percentage

    Nonresident Percentage

    City Tax Status
    (Duty Station = DS;
    Resident = R)

    Bethlehem

    42/0660

    1.0000

    1.0000

    DS, R

    Bradford (voluntary)

    42/0840

    1.0000

    1.0000

     

    Caln

    42/1044

    1.0000

    1.0000

    DS, R

    Camp Hill (voluntary)

    42/1060

    2.0000

    1.0000

     

    Carlisle

    42/1100

    1.6000

    1.0000

    DS, R

    Erie

    42/2640

    1.1800

    1.1800

    DS, R

    Fairview Township

    42/2769

    1.4500

    1.0000

    DS, R

    Greene Township

    42/3343

    1.7000

    1.0000

    DS, R

    Gregg Township

    42/3396

    1.8000

    1.0000

    DS, R

    Hanover Township

    42/3470

    1.0000

    1.0000

    DS, R

    Harrisburg

    42/3500

    2.0000

    1.0000

    DS, R

    Horsham

    42/3740

    1.0000

    1.0000

    DS, R

    Kelly Township

    42/4053

    2.0000

    1.0000

    DS, R

    Lancaster

    42/4180

    1.1000

    1.0000

    DS, R

    Philadelphia

    42/6540

    3.9102

    3.4828

    DS, R

    Pittsburgh

    42/6600

    3.0000

    1.0000

    DS, R

    Plains Township

    42/6615

    1.0000

    1.0000

    DS, R

    Reading

    42/6900

    3.6000

    1.3000

    DS, R

    Scranton

    42/7460

    3.4000

    1.0000

    DS, R

    South Lebanon

    42/7894

    1.0000

    0.0000

    DS, R

    South Park Township

    42/7912

    1.0000

    0.0000

    R

    Tinicum

    42/8445

    1.0000

    1.0000

    DS

    Warminster Township

    42/8845

    1.0000

    1.0000

    DS, R

    Wilkes-Barre

    42/9340

    3.0000

    1.0000

    DS, R

    York

    42/9610

    1.2500

    1.2500

    DS, R

    Note: City tax is mandatory unless otherwise indicated.

  4. Divide the annual Pennsylvania city income tax withholding by 26 to obtain the biweekly Pennsylvania city income tax withholding.

Additional Resources

To view the updated tax formula go to the HR and Payroll Clients page and click the Publications tab in the center ribbon. Select U.S. Income Tax Formulas from the Publication menu to launch the tax map. Click the desired State from the map provided for the formula.

Inquiries

For questions about NFC processing, authorized Servicing Personnel Office representatives should contact the NFC Contact Center at 1-855-NFC-4GOV (1-855-632-4468) or via the Internet using the Requester Console.