How To Claim Your City Wage Tax Refund

Written by Alex Lloyd Gross, April 13, 2025


By Dan Doyle,

The City of Philadelphia is once again encouraging qualifying residents to take advantage of a valuable financial opportunity: the Income-Based Wage Tax Refund. According to the Philadelphia Department of Revenue, thousands of eligible taxpayers may still be missing out on refunds for overpaid City Wage Taxes from the years 2022, 2023, and 2024.

The refund program, aimed at providing relief to low-income individuals and families, allows qualifying taxpayers to reclaim a portion of the city’s Wage Tax if they earned below a certain income threshold and were approved for Pennsylvania Tax Forgiveness.

“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.”

Who Qualifies?

To be eligible, applicants must:

  • Have been approved for Pennsylvania Tax Forgiveness by filing a PA Schedule SP along with their PA-40 income tax return,
  • Earn an income below the annual threshold set by the Pennsylvania Department of Revenue, which varies by family size and tax year,
  • Be in good standing with the City of Philadelphia — meaning they do not owe any outstanding taxes or fees.

Importantly, only individuals who receive W-2 forms are eligible; those who receive Form 1099-DIV do not qualify for this program.

How to Apply

The process is designed to be simple and accessible. Taxpayers can:

  • Submit refund petitions online at the Philadelphia Tax Center (tax-services.phila.gov), which is fully mobile-friendly and does not require a login account,
  • Click on “Request Employee Wage Tax refund” directly from the homepage to begin,
  • Alternatively, download paper applications and access promotional materials via phila.gov/revenue/income-refund.

Applicants must provide:

  • A completed PA-40 and PA Schedule SP for each tax year they are requesting a refund,
  • W-2 forms for the same tax years showing all relevant wage and tax information.

Need Help?

Philadelphia residents with questions or those who need assistance with the application process can contact the Department of Revenue:

With refund requests already doubling from last year, the Department is urging all eligible residents not to miss this opportunity. “This money belongs to the taxpayers — we want to make sure they claim it,” McColgan emphasized.

For more information, income eligibility guidelines, and application support, visit: revenue.pa.gov and phila.gov/revenue/income-refund.