Summary
Philadelphia’s Wage and Earnings Tax remains the City’s largest single source of General Fund revenue, projected to generate one-third of General Fund revenues from FY26 to FY30, not including the PICA Tax. Although rate reductions have modestly slowed growth, the Wage Tax has shown steady performance over the last decade, driven by compensation in sectors like Health and Social Services, Professional Services, and Education. The fact sheet highlights emerging risks, including reduced collections from commuters, regional income stagnation, and the threat of state-level legislative changes, reinforcing the need for close monitoring going forward.