How Pennsylvania Taxes Your Paycheck
Pennsylvania's 3.07% flat rate is one of the lowest state income tax headlines in the country — until you stack what comes on top.
No standard deduction. PA taxes wages from the first dollar, with no standard deduction. A single filer earning $80,000 pays $80,000 × 3.07% = $2,456 in state tax. The math is simple, but compared to states with standard deductions of $13K–$16K, your effective state rate starts higher than the headline suggests.
PA does not exempt 401(k) contributions. Pennsylvania is one of a small handful of states that taxes 401(k)/403(b) elective deferrals as compensation. Contribute $20,000 to a 401(k), and you save federal tax on it — but you pay the full PA 3.07% ($614) on it anyway. The bright side is symmetric: PA does not tax those distributions in retirement after 59½, so the state effectively taxes the contribution year rather than the withdrawal year.
Philadelphia adds 3.75% (residents) or 3.44% (commuters). Philadelphia's wage tax is one of the highest big-city wage taxes in the country. Combined with the 3.07% state rate, a Philadelphia resident faces a 6.82% combined wage-tax burden — closer to a high-tax state than a low-tax one. Non-residents working in Philadelphia still owe 3.44%.
Most other PA municipalities collect a 1% Earned Income Tax (EIT). Outside Philadelphia, the local EIT is typically 1% — sometimes 1.5% in school districts that layer an additional school income tax on top. Small but nearly universal.
The aggregate picture: a Philadelphia resident faces roughly 6.8% in state-and-local wage tax — comparable to a middle-tier progressive state. Workers in low-EIT townships outside major cities come closer to PA's reputation, paying a clean ~4% on every dollar of wages once the local 1% is added in.
Top Cities in Pennsylvania
The largest population centers in Pennsylvania — and where local tax rates may stack on top of state withholding:
- Philadelphia — 1,550,000 residents
- Pittsburgh — 303,000 residents
- Allentown — 126,000 residents
- Erie — 94,000 residents
How Pennsylvania Compares to Neighboring States
Single-filer take-home on a $75,000 annual salary in 2026, federal + state income tax + FICA only:
| State | Take-Home | vs. Pennsylvania |
|---|---|---|
| Pennsylvania (here) | $59,290 | — |
| New York | $58,073 | -$1,218 |
| New Jersey | $58,997 | -$294 |
| Delaware | $57,874 | -$1,417 |
| Maryland | $58,394 | -$896 |
| West Virginia | $58,912 | -$378 |
Take-home reflects single filer, no pre-tax deductions; SDI/PFML and local taxes excluded for an apples-to-apples comparison.
Frequently Asked Questions
What's the Pennsylvania state income tax rate?
Pennsylvania has a flat income tax rate of 3.07% for 2026. Whether you earn $40,000 or $200,000, your state tax rate is the same — applied to your taxable income after the standard deduction.
How much is taken out of my paycheck in Pennsylvania?
For a single filer earning $75,000 in Pennsylvania (2026), expect roughly $7,670 in federal income tax, $5,738 in FICA, and $2,303 in Pennsylvania state tax — leaving about $59,290 take-home (20.9% effective tax rate). SDI/PFML and local taxes (if any) come out of that as well.
Do Pennsylvania cities tax wages on top of state tax?
Most Pennsylvania municipalities levy an Earned Income Tax (EIT) of around 1%; Philadelphia residents pay 3.75% Wage Tax (3.44% for non-residents working in the city).
Does Pennsylvania tax 401(k) contributions or HSA contributions differently from federal rules?
Pennsylvania taxes 401(k) and 403(b) contributions at the state level — they reduce your federal taxable income but not your PA tax. This is one of the few states that does not conform to federal pre-tax retirement rules.
Is the Pennsylvania median household income enough to live comfortably?
The 2023 ACS reported a Pennsylvania median household income of about $77,500. Whether that's "comfortable" depends heavily on city — Philadelphia cost of living can differ substantially from rural areas. Use the calculator above to model your specific salary and deductions.
How does this Pennsylvania paycheck calculator work?
We calculate your annualized gross pay based on the pay frequency you select, then apply the 2025 or 2026 IRS percentage method for federal income tax, the Pennsylvania state tax schedule (if any), Social Security, and Medicare. Pre-tax deductions like 401(k) and Section 125 health premiums reduce your taxable base before withholding is computed. You can switch between salary and hourly modes; hourly mode applies time-and-a-half to hours over 40/week prorated by pay period.