I also work in Delaware and live in Philadelphia. My company deducts Delaware (non-resident) wage taxes from my paycheck. It does not deduct city (Philadelphia) wage taxes from my paycheck. I will have to send city taxes to Philadelphia (3.8%). My question is: Will Delaware give me credit for the city taxes I pay, or will the city taxes be ADDED to the Delaware state taxes? I understand that I will owe $0 to the state of Pennsylvania, as they will give me credit for Delaware state income taxes paid, and Delaware income tax rate is higher than Pennsylvania's. I also understand that the city of Philadelphia will not give me credit for (non-resident) state taxes paid to Delaware, so I will definitely have to pay 3.8% to Philadelphia. My question is whether Delaware gives any credits/deductions/refunds for city taxes paid to the city of Philadelphia?
