PENNSYLVANIA PAYCHECK CALCULATOR
Pennsylvania runs one of the simplest state income taxes in the country: a flat 3.07% on almost everything you earn, no brackets, no standard deduction, same rate whether you make $30,000 or $300,000. It’s also one of the lowest flat rates among the states that use one. But that simplicity hides a second layer most new Pennsylvania workers don’t expect. Nearly every municipality in the state, plus the school district you live in, adds its own local Earned Income Tax on top, and Philadelphia skips that system entirely in favor of its own Wage Tax, the highest city-level income tax rate in the country.
A Pennsylvania paycheck typically shows five separate deductions before you see your net pay: federal income tax, Social Security, Medicare, the flat 3.07% state tax, and a local earned income tax tied to where you live or work. If you’re weighing a move or comparing offers, it helps to see how that stacks up elsewhere. Check out our New Jersey paycheck calculator, Ohio paycheck calculator, Maryland paycheck calculator, or New York paycheck calculator for a side-by-side look.
Flat 3.07% State Tax · Updated for 2026Estimate Your Pennsylvania Take-Home Pay
$0 / paycheck
Estimate only. Excludes local Earned Income Tax (varies by municipality, ~1% typical, up to ~3.75% in Philadelphia) and pre-tax deductions like 401(k) or health premiums.
Every Deduction on a Pennsylvania Paycheck
Here’s what actually comes out before you see your net pay, in the order most pay stubs list them:
- Federal income tax, based on the 2026 IRS brackets (10% to 37%) and your filing status, after subtracting the federal standard deduction ($16,100 single, $32,200 married filing jointly, $24,150 head of household).
- Social Security, 6.2% of wages up to the $184,500 wage base for 2026. Once you cross that, Social Security withholding stops for the rest of the year.
- Medicare, 1.45% on all wages with no cap, plus an extra 0.9% on wages above $200,000 (single/head of household) or $250,000 (married filing jointly).
- Pennsylvania state income tax, a flat 3.07% of compensation. There’s no bracket to climb and nothing to subtract first, so this line is easy to predict: multiply your gross by 0.0307.
- Local Earned Income Tax (EIT), set by the municipality and school district where you live under Act 32. Most suburban and rural areas land around 1%, though it varies by taxing jurisdiction. Philadelphia and a handful of other cities opt out of Act 32 and run their own systems instead.
- Pennsylvania Unemployment Compensation withholding, 0.07% of gross wages with no cap. Pennsylvania is one of only a few states where employees, not just employers, contribute toward the unemployment fund.
- Local Services Tax (LST), a flat municipal tax capped at $52 a year total, sometimes split across paychecks, charged in many (not all) Pennsylvania work locations regardless of where you live.
Philadelphia Wage Tax and Local EIT: The Part Your Offer Letter Won’t Mention
Pennsylvania’s 3.07% flat state rate is genuinely simple. What trips people up is the second tax sitting right next to it on the pay stub. Under Act 32, most of the state’s 2,500-plus municipalities and school districts levy a combined local Earned Income Tax, collected by a designated tax collection district based on your Residency Certification Form. Philadelphia sits outside that system entirely and instead charges its own Wage Tax directly on compensation, currently around 3.75% for residents and about 3.44% for people who work in the city but live elsewhere.
| Location | Local Tax Type | Approximate Rate |
|---|---|---|
| Philadelphia (resident) | Wage Tax | ~3.75% |
| Philadelphia (nonresident, works in city) | Wage Tax | ~3.44% |
| Pittsburgh | Earned Income Tax (Act 32) | ~3.00% |
| Typical suburban PA municipality | Earned Income Tax (Act 32) | ~1.00% |
| Most PA work locations | Local Services Tax | Up to $52/year flat |
Add it up and a Philadelphia resident faces roughly 6.82% in combined state and city income tax before federal tax and FICA even enter the picture, which is why Philadelphia’s wage tax is frequently cited as the highest city-level income tax rate in the country. A suburban Pittsburgh or Philadelphia-metro worker paying a typical 1% EIT is looking at closer to 4.07% combined. The gap between those two numbers on a $70,000 salary is roughly $1,900 a year, so where exactly you live and work inside Pennsylvania matters almost as much as living in Pennsylvania at all.
Pennsylvania vs. Nearby States at $70,000 (Single Filer)
State income tax owed and estimated take-home pay at $70,000 in gross salary, single filer, standard deduction, before local/city/county add-ons:
| State | State Income Tax | Est. Take-Home Pay* |
|---|---|---|
| Pennsylvania | $2,149 (flat 3.07%) | ~$55,830 |
| Ohio | $1,209 | ~$56,890 |
| New Jersey | $2,375 | ~$55,650 |
| Maryland | $3,273 (state only) | ~$54,750 |
| New York | $3,615 (state only) | ~$54,410 |
*Take-home estimates include federal tax and FICA (identical across states at this income) minus the state income tax shown. They exclude city/county add-ons: Philadelphia’s Wage Tax, Ohio municipal income tax (1-3% in most cities), Maryland’s county piggyback tax (2.25%-3.20%), and New York City or Yonkers tax. Ohio and Pennsylvania also add small local taxes not reflected here.
Ohio comes out ahead of Pennsylvania on the state line alone, mostly because Ohio exempts the first $26,050 of income entirely before its flat 2.75% rate kicks in. Once you add Ohio’s municipal income taxes, which run 1% to 3% in most cities, the two states land much closer together. New Jersey’s graduated brackets actually tax a $70,000 earner slightly more than Pennsylvania’s flat rate does, since New Jersey’s mid-range bracket sits above 5%. Maryland and New York both come in higher at this income level, and that gap widens further once their county or city add-ons are included.
Pennsylvania’s Tax Trade-Offs, In Plain Terms
| Tax Type | Pennsylvania | National Context |
|---|---|---|
| State income tax | Flat 3.07% | Below average; among the lowest of the 41 states that tax wage income |
| Local income tax | Common, ~1% typical, up to ~3.75% in Philadelphia | Less common nationally; only a handful of states allow city/local income taxes at all |
| Sales tax | 6% state, 6.34% average combined | Below the roughly 7% national average combined rate |
| Property tax | 1.26% effective rate | Above the national average, among the higher third of states |
| Estate/inheritance tax | No estate tax, but does levy an inheritance tax | Most states have neither; a handful still have one or both |
No state wins on every line, and Pennsylvania is a clear example. The flat 3.07% rate is genuinely one of the lower state income tax burdens in the country, and groceries and clothing are fully exempt from sales tax, which helps household budgets more than the headline sales tax rate suggests. The trade-off shows up in property tax, where Pennsylvania’s 1.26% effective rate runs meaningfully above the national average, largely because property taxes fund the bulk of local school district budgets here. Add the local EIT that most residents pay on top of the state rate, and the real income tax picture looks less flat than the headline number implies.
Pennsylvania for Retirees: One of the More Generous States
If you’re weighing where to retire, Pennsylvania’s tax treatment of retirement income is worth knowing about even if you’re not there yet. Social Security is never taxed at the state level, full stop. Beyond that, Pennsylvania exempts most retirement income, including 401(k) and IRA withdrawals and pension payments, from the state income tax once you retire after reaching normal retirement age, generally 59 and a half. That’s a meaningfully different deal than many neighboring states offer, where at least a portion of retirement account withdrawals gets taxed as ordinary income regardless of age.
The catch is the same one working residents face: local Earned Income Tax and the Philadelphia Wage Tax generally apply only to earned income (wages and self-employment income), not to retirement distributions, so retirees living in a high-EIT municipality don’t feel that part of the burden the way a working commuter would. Property tax is the bigger variable for retirees on a fixed income, and it’s worth checking whether your county or school district offers a homestead exemption or senior tax relief program before assuming the standard 1.26% effective rate applies to your situation.
Federal Tax Brackets for 2026 (Same in Every State)
Federal income tax is layered on top of Pennsylvania’s state tax and works the same way no matter where you live. For 2026, the seven federal brackets are 10%, 12%, 22%, 24%, 32%, 35%, and 37%, and the standard deduction is $16,100 for single filers, $32,200 for married couples filing jointly, and $24,150 for head of household.
| Rate | Single | Married Filing Jointly |
|---|---|---|
| 10% | $0 – $12,400 | $0 – $24,800 |
| 12% | $12,400 – $50,400 | $24,800 – $100,800 |
| 22% | $50,400 – $105,700 | $100,800 – $211,400 |
| 24% | $105,700 – $201,775 | $211,400 – $403,550 |
| 32% | $201,775 – $256,225 | $403,550 – $512,450 |
| 35% | $256,225 – $640,600 | $512,450 – $768,700 |
| 37% | Over $640,600 | Over $768,700 |
Worked Example: $70,000 Single Filer in Pennsylvania
Start with $70,000 in gross wages. Subtract the $16,100 federal standard deduction to get $53,900 in federal taxable income. That splits across three brackets:
- 10% on the first $12,400 = $1,240
- 12% on the next $38,000 (up to $50,400) = $4,560
- 22% on the remaining $3,500 (from $50,400 to $53,900) = $770
Federal tax owed comes to $6,570, an effective federal rate of about 9.4% on the full $70,000 (even though the top marginal bracket is 22%). Add Social Security ($4,340), Medicare ($1,015), Pennsylvania’s flat state tax ($2,149), and the 0.07% PA unemployment withholding ($49), and total withholding comes to roughly $14,123, leaving about $55,877 before any local EIT is subtracted.
Frequently Asked Questions
What is the Pennsylvania state income tax rate for 2026?
Pennsylvania charges a flat 3.07% state income tax on nearly all compensation for 2026. Every filer pays the same rate regardless of income level or filing status, and there’s no state standard deduction or personal exemption to subtract first.
Does Philadelphia have its own income tax on top of the state tax?
Yes. Philadelphia levies a Wage Tax of about 3.75% on residents and about 3.44% on nonresidents who work in the city. Combined with the 3.07% state rate, Philadelphia residents pay roughly 6.82% in state plus city income tax before federal tax and FICA.
Do all Pennsylvania municipalities charge a local income tax?
Most do. Under Act 32, the majority of Pennsylvania municipalities and school districts levy a local Earned Income Tax, commonly around 1% for many suburban areas, collected alongside the state tax. Pittsburgh’s rate runs closer to 3%. A separate flat Local Services Tax of up to $52 a year can also apply.
Is retirement income taxed in Pennsylvania?
Pennsylvania is unusually generous to retirees. Social Security is never taxed, and most retirement income including 401(k), IRA, and pension distributions is exempt from the state income tax once a person retires after reaching normal retirement age, generally 59 and a half.
Does Pennsylvania have state disability insurance or paid family leave tax?
No SDI or PFL exists in Pennsylvania. There’s a small unemployment compensation withholding instead, 0.07% of gross wages with no cap, which is unusual since most states don’t charge employees anything toward unemployment insurance.
How much sales tax will I pay in Pennsylvania?
The statewide rate is 6%. Only Philadelphia (8% total) and Allegheny County, home to Pittsburgh (7% total), add a local sales tax on top. Groceries and clothing are fully exempt statewide, which softens the impact on everyday spending.
Pennsylvania’s tax code rewards people who understand it and quietly costs money for people who don’t. A flat 3.07% rate looks simple on paper, but the local EIT or Philadelphia’s Wage Tax can shift your real withholding by a percentage point or two depending on your ZIP code, and that’s before property tax enters the picture for homeowners. If you’re negotiating a job offer or comparing two Pennsylvania addresses, it’s worth asking your prospective employer or municipality directly what local rate applies rather than assuming the state’s 3.07% is the whole story.