Question

Live in Philadelphia and work in NJ: Philadelphia City Wage Tax

Forum|Forum|5 years ago
January 26, 2021
1 reply
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I started a new job in 2021 for an employer based in NJ while I'm living in Philadelphia, PA. Is there a way to deduct the taxes from my paycheck? Am I supposed to pay quarterly Philadelphia Tax during 2021?

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E

ErnieS0

No. You do not have to pay a quarterly tax to Philadelphia. Your New Jersey employer should be withholding Philadelphia wage tax on your pay along with Pennsylvania state income tax.

New Jersey and Pennsylvania have a reciprocal tax agreement. Under the deal, a Pennsylvania resident will not have to file a New Jersey income tax return if the only NJ income is wages.

Because of this, your NJ employer should be withholding PA tax. Check you pay stub. If you employer is withholding NJ tax, fill out and provide your employer with Form NJ-165.

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