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Tax Changes Implemented Pay Period 2025-19: HI, MD, and Locality in PA

DATE: Thursday, September 11, 2025

Please share this information with all impacted employees.

The following tax changes were implemented in Pay Period 2025-19. As a result, employees may see a change in their current tax withholdings. Please note that these tax changes are not applied retroactively and reconciliation may be needed when impacted employees file their tax returns.

State Taxes

Hawaii State Income Tax Withholding:

  • The state income tax withholding formula has changed effective January 1, 2025.
  • Certified Disabled Person has been added as a valid filing status.
  • If the filing status is Certified Disabled Person, the withholding tax will be equal to zero.
  • FPPS Tax Marital Status code ‘0’ will include Certified Disabled Person for Hawaii.
  • Datamart Query: Tax State = 15

Maryland State Income Tax Withholding:

  • The state income tax withholding formula has changed effective July 1, 2025.
  • The additional tax rate for Dorchester County has changed from 3.2% to 3.3%.
  • The additional tax rate for Maryland residents working in Delaware has changed from 3.2% to 3.3%.
  • Datamart Query: Tax State = 24

Local Taxes

Philadelphia, Pennsylvania Local Income Tax Withholding:

  • The state income tax withholding formula has changed effective July 1, 2025.
  • The resident tax rate has changed from 3.75% to 3.74%.
  • The non-resident tax rate has changed from 3.44% to 3.43%.
  • Datamart Query: Tax State = 42, City Code = 6540

You may execute Datamart queries to identify employees in affected state taxing areas. For Combined File Ad-Hoc query/analysis of applicable states, add STE Tax State 1 = (Tax State code listed above) or STE Tax State 2 = (Tax State code listed above) to the filter or prompt lines. Another option is the shared Datamart report titled "State Tax Code Report" (State Tax Code Query Now Available | January 18, 2024). For local tax queries, add the Tax State and/or City Code to the prompt lines (Occurrences – Other PE Pay).

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