TAXES 18-66, Pennsylvania Local Income Tax Withholding

Published: November 15, 2018
Effective: Pay Period 14, 2018

Summary

This bulletin supersedes TAXES 18-61, Pennsylvania Local Income Tax Withholding, dated July 16, 2018. The City Tax Status for South Park Township has been updated from Resident (R) to Duty State (DS) and Resident (R). All other information remains the same.

The income tax rates decreased from 3.8907 percent to 3.8809 percent for residents and from 3.4654 percent to 3.4567 percent for nonresidents of the city of Philadelphia, Pennsylvania.

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 the number of pay dates in the tax year to obtain the gross annual wages.
  3. Calculate the gross annual wages by applying the following guidelines to determine the annual Pennsylvania city income tax withholdings:

    City

    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

    N/A

    Caln

    42/1044

    1.0000

    1.0000

    DS, R

    Camp Hill (voluntary)

    42/1060

    2.0000

    1.0000

    N/A

    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

    3.8809

    3.4567

    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

    1.0000

    DS, 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 calculated in step 3 by the number of pay dates in the tax year to obtain the biweekly Pennsylvania city income tax withholding.

Resources

To view the updated tax formula, go to the HR and Payroll Clients page from the MyNFC drop-down menu on the National Finance Center (NFC) homepage. Select the Publications tab and select U.S. Income Tax Formulas from the Publications menu to launch the tax map. Select the desired State from the map provided for the formula.

Previous Tax Bulletin

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 customer service portal.