“How does Philly get away with their “city wage tax”?
This is a 3.5% (if I recall correctly) levied on anyone who works or lives within city limits.
Doesn’t this tax also violate the state’s preemption clause?”
No, this is how Pennsylvania works. I don’t like it, and I’m leaving as soon as I can make a plan happen. Because PA is a nice place, but if you’re struggling with money then this place will finish you off.
Their DMV is setup to prevent anyone without $4000 in their pocket from ever driving. Their income tax is sly.
PA has a state income tax that’s pretty low. And lots of people may get tricked into moving here because of it. But then, from the shadows come a local income tax.
All of PA has 3% local tax from your income. Scranton, Philly, Pittsburgh have 5 or 7 percent tax.
So you pay federal, state and local. The nice thing about this is that this percentage of taxes stays in YOUR area. I live in the most expensive county in the state and half of what I was paying in CT in income taxes (state and local taxes equal what I paid in CT state taxes alone) go to my schools, my towns, and my municipality.
If you don’t pay these taxes the sheriff WILL be there, that year, to take your registered car. That’s why PA is so strict on registration - the state uses your registered property as leverage unceremoniously.
PA state has an extensive list of “Sheriff’s sales” where you can find nice homes for $2000. Well, the key is that the homeowner didn’t pay $2000 in taxes that year. So if you don’t pay these taxes, the town immediately seizes your stuff and tries to sell it. Of course, about 99% of these sales are just to get the attention of the land owner.
I grew up in CT, NJ, PA, NH and lived as a young adult in CO. None of these states are the states that I remember. They are all now enemy territory. Places where government have created systems designed to keep it’s people poor and non-threatening.
I live in East Goshen township, PA. My local taxes are 1%. My state taxes are 1%. Property taxes are about $5k a year for a good sized single family home on about 2 acres.
Though I work in a different township, and pay those local income taxes, they are actually routed back to my local township, so I only pay one local tax. 1% total.
But if I took a job in the city, I’d pay the city wage tax on top of local taxes. That’s why there are so many business parks just outside the city limits. I’m happy to let the city starve.
How do you figure that? It's $36 to register a car. $30.50 for a 4 year driver's license.
Sure, you have to pay sales tax on a car (6% in most counties) and pay high gas taxes. But how do you figure $4000?
All of PA has 3% local tax from your income. Scranton, Philly, Pittsburgh have 5 or 7 percent tax.
The state income tax is 3.07% with pretty much no deductions. Local earned income tax in most jurisdictions is 1% (shared between school and municipality). Yeah, the bigger cities have a higher income tax.
Isn't this a good thing?