Working from Home May Affect Your Local Wage Tax

If you are an employee of a Philadelphia-based employer and are now required to work remotely from your residence in Lower Providence, you should inquire with your employer about withholding the appropriate earned income tax. If you have been and continue to be required to work from home for 90 or more days, your employer could register your home as a work location and no longer withhold the Philadelphia wage tax.

Instead, your employer could be withholding at the rate applicable to your new work location – your Lower Providence residence.  This means that you would then be taxed at Lower Providence Township’s lower earned income tax rate of 1%.  Additionally, the tax revenue would come back to your home community of Lower Providence Township as well as the Methacton School District, thus benefiting both of your taxing districts. 

Again, this must be initiated by the employer so if this applies to you, please inquire with your employer to see if this could apply to your 2021 Earned Income Taxes.