Home Buying in 19401>Question Details

Deb, Home Buyer in Narberth, PA

a home in Norristown PA what are the taxes I have to pay? Will I have a tax deducted from my paycheck in additon to the tax I pay thru mortage?

Asked by Deb, Narberth, PA Fri Feb 12, 2010

My Mortage /Tax payment

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Several municipalities make up "Norristown". See below.

Norristown Borough
- 1.6% Earned Income Municipal
- 0.5% Earned Income School District
- per capita tax $5
- local services tax 10

East Norriton township
- 0.5% Earned Income Municipal
- 0.5% Earned Income School District
- per capita tax $0
- local services tax 52

West Norriton township
- 0.5% Earned Income Municipal
- 0.5% Earned Income School District
- per capita tax $5
- local services tax 0

Good Hunting!
0 votes Thank Flag Link Fri Feb 12, 2010
~ Local taxes are not deducted from your paycheck based on the localilty at which you reside.
~ Local taxes are deducted based on the location of the employer's business and they are not required to deduct any other local other than Philadelphia because it superseeds all other local taxes.
~ When completing your tax returns you can apply the money deducted from your employer to where you reside. If you happen to live in an area that has the same percentage as what was witheld. GOOD FOR YOU! If not, open up your check book because you will have to pay the difference to the Tax Collector.

Example: I am a Norristown Resident living in the 2.1% area and I work in Blue Bell which is only 1%. When I file my taxes I have to pay the 1.1% difference. The 1st 1% was already deducted by my employer and submitted to Berkheimer on my behalf quarterly.

If your accountant does not understand the above. Find a new accountant.
1 vote Thank Flag Link Mon Apr 18, 2011
This is not entirely true. If you live in Philadelphia and work in another PA municipality, the Philadelphia Wage Tax is still deducted for your paycheck.
Flag Sun Oct 12, 2014
You will not have the property taxes deducted from your paycheck. The will be paid by the lender from your escrow account. The total annual tax bill will be divided by 12 and that amount will be paid with your principal and interest payment each month, plus 1/12th of your taxes, and PMI or MIP if you have that. What you may want to ask a tax advisor is whether, based on the property tax and interest deduction you will get on the mortgage, you should change your exemptions with your employer so you get extra money in every pay-check, rather than getting a bigger refund when you file.
1 vote Thank Flag Link Fri Feb 12, 2010
The Township taxes will come out of your paycheck from the city where you live and work. It is usually very minimal and a minimal amount will come out of your check. You will note all this when you do your taxes from the W-2 that your employer gives you. I hope that helps. It is usually not an issue when moving to Norristown.

Cheryl Supplee
Coldwell Banker Preferred
(610) 812-6575
csupplee@cbpref.com
0 votes Thank Flag Link Sat Feb 13, 2010
Hi Deb,

The link that Dan provided is the Official site for all EIT for PA. Some municipalities have no EIT at all, like mine, Yardley and others. Some are very high - up to 2% maximum. Many are 1%, split between the town and school.

Please see my profile, and link to my blog with a lot of detail on these taxes.

Jeff
0 votes Thank Flag Link Sat Feb 13, 2010
Deb:

Try this link for the details:

http://munstatspa.dced.state.pa.us/Registers.aspx
0 votes Thank Flag Link Fri Feb 12, 2010
Thank you for the information. I really apprecate the help. I just found out that Norristown has a 2.1% Resident Earned Income tax ...deducted from your paycheck. This is 2.1% of your salary.
0 votes Thank Flag Link Fri Feb 12, 2010
Deb,

If you live in Philadelphia, you would pay the City Wage tax which is why people want to move out of the city so they can escape that tax and move into the counties. I do understand though that the city is reducing the wage tax because people are moving to get away from it.

There is no wage tax that I am aware of in the counties however taxes in general are usually higher than that of the city of Philadelphia.

So, if you live in Norristown and work in Norristown, no wage tax. If you live outside the city and work in Philadelphia, the wage tax is 3.5% the last time I checked.

I hope this helps.

Renee Porsia
Associate Broker
RE/MAX ACTION
(215) 669-0589 Direct
(215) 358-1100 Office Ask for Renee
http://www.reneeporsia.com
0 votes Thank Flag Link Fri Feb 12, 2010
Sorry I guess I did not ask the question correctly. I understand that I will pay School taxes, City taxes & County taxes with my mortgage payments thru escrow. What I am trying to find out is what other taxes I would have to pay. In the state of PA there seems to be taxes that are deducted from your paychecks and I am trying to find what those would be in Norristown, people who live in the city of Philadelphia proper pay a wage tax does Norristown have that as well. I cannot get th city of Norristown to answer my question thanks for your help
0 votes Thank Flag Link Fri Feb 12, 2010
Deb,

Each home is different for taxes. It all depends on where the home is located and how big it is. You will pay your taxes for your home with your mortgage and you will know how much your payment will be prior to buying the home when you get your good faith estimate. As a home owner, you will get tax deductions which is one of the great reasons to buy a home.

In addition, if you are a first-time home buyer and can find a home by April 30th, you could take advantage of the tax credit.

Seller assist is also something that can help you with your purchase.

If you are seriously thinking of finding a home, the very first thing you should do is build a relationship with a Realtor and how you do that is to hire a buyer agent. Even if you are not looking to purchase a home right now, finding the right buyer agent for you will be to your advantage by the time you are ready to buy something. You can turn to your buyer agent for everything, you can ask all the questions you have, learn all about the home buying process, get preapproved for a mortgage, learn about the mortgage process and when you are finally ready, you and your buyer agent can just start the process and you will be well educated.

A buyer agent protects only you and fights to get you a home for the lowest possible price they can negotiate.

You can learn about buyer agency on my site @ http://www.reneeporsia.com I provide video as well as my written blog which you will find helpful. You can also search all available properties by clicking on the property search button at the top of the page.

I'd love to talk to you about your situation and provide answers to all of your questions. Feel free to email me at reneeporsia@mac.com or you can certainly call me at (215) 669-0589.

I service all of Philadelphia, Bucks and Montgomery Counties.

Renee Porsia
Associate Broker
RE/MAX ACTION
(215) 669-0589 Direct
(215) 358-1100 Office ask for Renee
http://www.reneeporsia.com
0 votes Thank Flag Link Fri Feb 12, 2010
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