Question

I live in Florida but my company is in Philadelphia, do I have to pay State and City tax?

Forum|Forum|6 years ago
October 7, 2019
1 reply
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So I live in Florida and work 100% remote from my house for a company that is located in Philadelphia, PA. Currently on my paycheck they are deducting State and City Tax, is there any way when I file my tax return that I can recoup those taxes since I do NOT live there? I understand that my physical company is located there but with my permanent residence/home office being in Florida what are my options?

T

TomD8

Employee

With regard to PA state income tax, PA follows the "convenience of the employer" doctrine. This means that if you are a non-resident of PA working remotely for a PA employer, your income is exempt from PA taxation only if you are working remotely for the "convenience of the employer," and not for your own convenience.

Scroll down to the Convenience of the Employer Doctrine section of this reference to see the full details of this policy: https://www.revenue.pa.gov/FormsandPublications/PAPersonalIncomeTaxGuide/Pages/Gross-Compensation.aspx#Nonres-AllocPAComp

The Philadelphia city wage tax applies to: "A non-resident of Philadelphia who performs services for an employer in Philadelphia."

https://www.phila.gov/services/payments-assistance-taxes/business-taxes/wage-tax-employers/

Bottom line: it looks like you are definitely subject to the Philadelphia city tax, and possibly for the PA state income tax as well.

**Answers are correct to the best of my ability but do not constitute tax or legal advice.