Pennsylvania law requires withholding at a rate of 3.07 percent on non-wage Pennsylvania source income payments made to nonresidents. Withholding of payments that are less than $5,000 during the calendar year are optional and at the discretion of the payor.
You'll notice that Pennsylvania does not have a state W-4-this is because the rate is a set percentage. Knowing the federal and state W-4 rules will assist you in correct calculations of withholdings and can assist employees with the requirements.
The wage tax, which is typically withheld from workers' paychecks, applies to all Philadelphians, regardless of where they work, and to all nonresidents who work in the city. The current rates are 3.75% for residents and 3.44% for nonresidents.
Pennsylvania does not have a form exactly like the federal W-4 form, since Pennsylvania Personal Income Tax is based on a flat tax rate and everyone pays the same rate of 3.07 percent. Pennsylvania does not have allowances based on the number of dependents claimed, marital status, age, etc.
AFAIK the only way to avoid the city tax is to not live in the city. Also parking in some of the areas in the city can be expensive, so you might want to look at some of the main line suburbs.
Pennsylvania personal income tax is levied at the rate of 3.07 percent against taxable income of resident and nonresident individuals, estates, trusts, partnerships, S corporations, business trusts and limited liability companies not federally taxed as corporations.
Step 3 of the W-4 form will ask you how many qualifying children you have under age 17, and how many other dependents you have. After you complete Step 3, your employer will know exactly how much to decrease withholding to allow for your children.
The number of dependents is, mathematically speaking, the number of people who are in your immediate family. (It might include your husband/wife, your children, and your (grand)parents.)
To connect with the PA Governor's Center for Local Government Services (GCLGS), email ra-dcedclgs@pa or telephone (888) 223-6837. Pennsylvania does not have a form similar to the federal W-4 form, since Pennsylvania Personal Income Tax is based on a flat tax rate and everyone pays the same rate.
The child must be: (a) under age 19 at the end of the year and younger than you (or your spouse, if filing jointly), (b) under age 24 at the end of the year, a full- time student, and younger than you (or your spouse, if filing jointly), or (c) any age if permanently and totally disabled.