PHILADELPHIA – The Philadelphia Department of Revenue is reminding taxpayers that they may be eligible for an Income-Based Wage Tax Refund if they meet specific criteria. Eligible taxpayers qualify for a lower Wage Tax rate and can request a refund for overpaid taxes. Taxpayers can apply for a refund for the years 2022, 2023, and 2024. This program provides substantial financial relief to low-income individuals and families.

“Although Revenue has made progress encouraging more people to request a refund, doubling the number of requests processed from 2023 to 2024,” said Revenue Commissioner Kathleen McColgan. “We know far more Philadelphians are eligible and leaving money on the table.”

To qualify for the refund, applicants must:

  • Be approved for Pennsylvania Tax Forgiveness by filing a PA Schedule SP when filing their PA Personal Income Tax returns,
  • Have an income below the limit set by Pennsylvania for the relevant tax year and family size. Please note that these income limits change annually. Visit the Pennsylvania Department of Revenue’s website at revenue.pa.gov for the current income guidelines, and
  • Be in good standing, meaning not owe any taxes or fees to the City of Philadelphia.

Applicants must provide the following documentation:

  • A copy of the completed PA-40 form and PA Schedule SP (tax forgiveness) for each tax year for which a refund is being requested.
  • W-2 forms for the tax years for which a refund is being requested, showing Federal, State, Medicare, and Local wages and withholdings. (Taxpayers who receive a Form 1099-DIV are not eligible).

Taxpayers can submit refund petitions online through the Philadelphia Tax Center at tax-services.phila.gov without a username and password, and the site is available on mobile devices. Applicants can select “Request Employee Wage Tax refund” from the homepage to get started. Detailed information, promotional flyers, and paper applications are also available at phila.gov/revenue/income-refund.

For questions or assistance, taxpayers can contact us by mail at revenue@phila.gov or by phone at (215) 686-6574.

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