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Tax Structure
What’s in a tax?
Wage Tax
Employers doing business in Pittsburgh are required to collect the City and/or School District of Pittsburgh Tax on wages from residents and also non-residents who fail to file a certificate indicating payment at residence. Current wage tax rate: 3%. Non-Pennsylvania residents employed in the City of Pittsburgh are liable for 1% City Earned Income Tax.
Emergency & Municipal Services Tax
All persons engaged in an occupation in the City of Pittsburgh are subject to pay this tax, which is currently $52 per person, per year.
Payroll Expense Tax
Every employer doing business in the City of Pittsburgh is required to pay a Payroll Tax on the payroll expense of employees and of net distribution from self-employed individuals, members of partnerships, associations, joint ventures or other entities who perform work or provide services within the City of Pittsburgh. The ordinance imposes a Payroll Tax on all persons that engage, hire, employ or contract wit one or more individuals, as employees, to perform work or render services within the City of Pittsburgh.
Current rate: .55%.
Net Profit Tax
Self-employed individuals, partnerships, unincorporated businesses owned by residents of the City and/or School District of Pittsburgh (includes Mt.Oliver borough) and non-residents who fail to file an exemption certificate indicating payment at residents tax collector are required to pay a tax on the net profit. Non-Pennsylvania residents who own a business in the City of Pittsburgh are liable for 1% Net Profit Tax.
Current rate: varies.
Doing Business/Commercial/Taxes and Fees
Per City Ordinance #6 of 1996 - Exemption on Gross Annual Receipts, individuals, married couples jointly in business, partnerships and corporations are entitled to one exemption from gross receipts. If you file more than one Business Privilege Tax return, you may take the exemption against only one of those returns. Subtract the $20,000.00 from gross revenue to obtain the taxable revenue. You must file a Business Privilege Tax return in order to benefit from the exemption.
Institution Service Privilege Tax
Entities engaged in service in the medical, education, social, recreational, vocational or any other type of service where there is a charge collected, except elementary or secondary schools, are required to pay gross receipts. Exception is receipts from the sale of food, drink or merchandise.
Amusement Tax
All places of amusement and all producers of amusements are required to collect the tax from the patrons and remit the collected taxes to the City of Pittsburgh.
Current rate: 5%.
Parking Tax
All persons, non-profits or otherwise, within the City of Pittsburgh, who park or store motor vehicles for a consideration, are required to register and collect the Parking Tax from patrons.
Current rate: 40%.
Click here for City Tax Forms
Click here for City Tax Rates by Type
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