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Yes, if you live or work in Philadelphia, you may be subject to the Philadelphia City Wage Tax. This tax applies to salaries, wages, commissions, and other compensation paid to residents and non-residents who work in Philadelphia. The tax rates vary for residents and non-residents. For tax year 2022, the Philadelphia City Wage Tax rates are as follows: - Residents: 3.8712% of the gross wages earned. - Non-residents: 3.5019% of the gross wages earned for work performed in Philadelphia. In addition to the City Wage Tax, residents of Philadelphia may also be subject to the Pennsylvania state income tax, the Philadelphia School Income Tax, and other local taxes. Employer withholding of the City Wage Tax is generally required. If you're self-employed, you may also be subject to the Business Income and Receipts Tax (BIRT) and the Net Profits Tax (NPT). Keep in mind that tax rates and regulations can change, so consult a tax professional or the Philadelphia Department of Revenue's website for the most up-to-date information.