Pennsylvania tax summary for 2026
| Tax on wages | Flat rate |
|---|---|
| Starting point | State’s own definition of income (federal AGI not used) |
| Rates (single) | 3.07% |
| Standard deduction | None |
| Personal exemption | None |
| Federal income tax deduction | Not allowed |
| Employee payroll taxes | Unemployment Compensation (UC) – employee |
| Local income taxes | Yes — 3 in our data |
Pennsylvania income tax brackets 2026
Rates apply to Pennsylvania taxable income, after the deductions above. Married filing separately uses the single brackets unless the state publishes its own.
| Taxable income over | Up to | Rate |
|---|---|---|
| $0 | and up | 3.07% |
Pennsylvania employee payroll taxes
| Program | Employee rate | Wage base | Annual maximum |
|---|---|---|---|
| Unemployment Compensation (UC) – employee 0.07% on all gross wages effective 2023 and thereafter. No wage base limit applies to employee contributions (unlike the employer taxable wage base of $10,000). Rate is activated by the fund solvency trigger mechanism; trigger percentage as of July 1, 2025 = 119%, resulting in 0.07% employee rate for 2026. | 0.07% | No cap | — |
Local income taxes in Pennsylvania
Pennsylvania has two distinct local wage tax systems. (1) Philadelphia Wage Tax: The City of Philadelphia levies a wage tax on residents (all income) and nonresidents who work in Philadelphia. Rate changes annually effective July 1. (2) PA Local Earned Income Tax (EIT): Most Pennsylvania municipalities and school districts levy a combined EIT. Employers withhold at the rate of the employee's place of residence or the workplace municipality, whichever applies (credit given to avoid double-taxation). EIT rates vary by municipality (typically 1% to 3%). The official rate lookup tool is at dced.pa.gov (DCED Local Tax Earned Income Tool). Rates vary widely; employees must determine their municipality's rate. Basis: wages; applies to employees working in Pennsylvania municipalities that levy EIT; Philadelphia residents and workers citywide.
| Jurisdiction | Resident rate | Nonresident rate |
|---|---|---|
| Philadelphia – Wage Tax (July 1, 2025 – June 30, 2026) | 3.74% | 3.43% |
| Philadelphia – Wage Tax (July 1, 2026 onward) | 3.735% | 3.425% |
| Pennsylvania local Earned Income Tax (EIT) – general | Not yet verified — not included in the calculator | — |
Worked example: $65,000, single, paid biweekly
Computed by the same engine as the calculator, with no pre-tax deductions and no local tax.
| Line | Per paycheck | Annual |
|---|---|---|
| Gross pay | $2,500.00 | $65,000 |
| Federal income tax | $216.15 | $5,620 |
| Social Security | $155.00 | $4,030 |
| Medicare | $36.25 | $943 |
| Pennsylvania income tax | $76.75 | $1,996 |
| Unemployment Compensation (UC) – employee | $1.75 | $46 |
| Take-home pay | $2,014.10 | $52,367 |
Effective tax rate 19.4%; tax on the next dollar earned 22.8%. Pennsylvania taxable income is $65,000. Adding Philadelphia – Wage Tax (July 1, 2025 – June 30, 2026) local tax would cost $2,431 a year.
Second example: $120,000, married filing jointly, two children
Take-home $101,412 a year ($3,900.46 biweekly). Federal income tax $5,640 after a $4,400 Child Tax Credit, Social Security and Medicare $9,180, Pennsylvania income tax $3,684, state payroll taxes $84.
How the Pennsylvania estimate is calculated
- Start from state’s own definition of income (federal agi not used) — here, wages after Section 125 benefits; traditional 401(k) deferrals are not subtracted.
- Pennsylvania has no standard deduction in our data.
- Apply the flat rate (married filing separately uses the single brackets).
- Add Unemployment Compensation (UC) – employee on wages after Section 125 deductions, up to its wage base or annual cap.
- If you pick a locality, add local tax on wages.
- Divide the annual total by your number of paychecks.
What this Pennsylvania calculator does not model
- Pennsylvania taxes 8 classes of income separately; losses in one class cannot offset income in another
- Pennsylvania Tax Forgiveness Credit (low-income credit, reduces tax to 0 at very low income levels)
- Pennsylvania taxes compensation under its own rules with no standard deduction or personal exemption
- HSA and medical savings account contribution deductions (allowable under PA law)
- IRC Section 529 tuition account contributions (deductible for PA)
- Unreimbursed employee business expenses (deductible for PA)
- Local Earned Income Tax (EIT) — Philadelphia wage tax and Pittsburgh/other municipal EIT administered separately; see local-2026.json
- School District Personal Income Tax (varies by school district)
- PA does not conform to federal standard deduction, itemized deductions, or personal exemptions
Data notes
- Pennsylvania personal income tax rate has been 3.07% since 2004 and is confirmed at that rate for 2026.
- Pennsylvania has no standard deduction, no personal exemption, and no bracket structure — the 3.07% flat rate applies to all taxable compensation.
- PA has no W-4 equivalent; employers withhold at 3.07% flat.
- Local EIT (e.g., Philadelphia 3.75% resident / 3.44% nonresident, Pittsburgh 3%) and school district PIT are significant additional taxes administered separately.
- Re-verified 2026-10-07: 3.07% flat rate unchanged for 2026; PA compensation is not reduced by 401(k) deferrals, which matches the engine's 'own' base.
Sources
- State income tax: Pennsylvania Personal Income Tax — Department of Revenue (read 2026-10-07)
- State income tax: Pennsylvania Current Tax Rates — Department of Revenue (read 2026-10-07)
- State income tax: Pennsylvania Employer Withholding Requirements (read 2026-10-07)
- Unemployment Compensation (UC) – employee: Employee Withholding – PA Department of Labor and Industry (read 2026-10-07)
- Local income tax: Philadelphia Wage Tax (Employers) – City of Philadelphia Revenue (read 2026-10-07)
Federal figures come from the IRS and SSA; see the methodology page.
Compare nearby and similar states
Neighboring states: Delaware, Maryland, New Jersey, New York, Ohio, West Virginia
States with a similar tax setup: North Carolina, Indiana, Iowa, Colorado, Kentucky, Idaho
See every state side by side in the salary comparison by state, or browse all state paycheck calculators.