Income tax regulations

The regulations document puts forth the legal terms of Philadelphia's Wage Tax (employers), Earnings Tax (employees), and Net Profits Tax.

A separate amendment explains that the Department of Revenue can sometimes change the rules for which employers have to file and pay income taxes electronically. When changes are made, people who already file the tax will be notified. The changes will also be posted on Revenue's website.


Name Description Released Format
Income tax regulations PDF Full regulations for Philadelphia's Wage, Earnings, and Net Profit Taxes. January 1, 2002
Income tax amendment (Sec. 225) PDF Amendments made in 2017 to Section 225 of Philadelphia's income tax regulations. Describes the addition of a 1.5% Pennsylvania Intergovernmental Cooperation Authority (PICA) Tax on the total rate of the Wage, Earnings and Net Profits taxes collected by the City. May 21, 2019
Advisory notice update: Deducting employee business expenses PDF This text serves to notify taxpayers about the City of Philadelphia’s position on deducting employee business expenses and moving expenses January 16, 2019
IRC Section 199A deduction: Frequently Asked Questions PDF This text covers some of the most common questions about how the federal change to IRC Section 199A impacts Philadelphia business and income tax filings. January 17, 2019
Income tax new business regulations PDF Explains "new business" status under the Philadelphia Code and describes related financial benefits. August 04, 2014
Income tax electronic filing amendment PDF Amends sec. 304, regarding electronic filing of income taxes by employers and payroll services. October 18, 2011
Income tax amendment (Sec. 101) PDF Amendments made in 2013 to Section 101 of Philadelphia's income tax regulations. Changes certain provisions regarding investment companies. July 11, 2013
Income tax amendment (Sec. 224) PDF Amendments made in 2009 to Section 224 of Philadelphia's income tax regulations. Changes the definition of Real Estate Investment Trust ("REIT") and extends allowable deductions to organizations that meet the new definition. December 28, 2009
Income Inequality Initiative regulations (Secs. 501 & 502) PDF Describes the Income Inequality Initiative, a part of the City's income tax regulations that requires employers to provide their employees with notice of the federal Earned Income Tax Credit (EITC) program. January 15, 2016
Refunds & Forgiveness of Poverty Income regulations (Sec. 601) PDF Describes eligibility for refund or forgiveness of Wage Tax and/or Net Profits Tax for low-income residents and non-residents who pay these taxes. March 09, 2016
Civil Actions for Tax Violations regulations (Secs. 801-806) PDF Adds new sections to the City income tax regulations that explain civil actions against Wage Tax and/or Net Profit Tax violators. November 16, 2016