That Philly tax is similar to the KC, MO “earnings tax”. You owe a 1% tax on income you earn in the city as a non-resident OR any income earned as a resident. Employers withhold and remit, leaving most workers no paperwork to file. The city sends tax bills to professional athletes who come to town to play the local teams, like the Chiefs, Royals, and Wizards when they play at Arrowhead (instead of CommunityAmerica Ballpark in KC, KS).

A lot of the home team athletes live just outside the city limits in places like Leawood, KS, so that they only have to pay the “E-tax” when they’re playing home games. One percent of income may not sound like much to the average person, but when you get millions of dollars a year, effectively cutting it to a half percent is a lot of money. Fascinating how people will try to avoid paying those taxes, huh?