Pennsylvania Salary Calculator 2026 — Free Take-Home Pay Estimator

Pennsylvania Income Tax Summary

Pennsylvania has a flat income tax rate of 3.07% on most forms of income. The state has one of the lowest flat rates in the country. Pennsylvania taxes most forms of income but has unique rules about what is taxable. The state also has a state sales tax and moderate property taxes. [Source: Pennsylvania Department of Revenue, 2026]

Pennsylvania Income Tax Rules

• Flat income tax rate of 3.07% on Pennsylvania taxable income [Source: Pennsylvania Department of Revenue, 2026]
• Standard deduction: none at the state level [Source: Pennsylvania Department of Revenue, 2026]
• Personal exemption: none
• Only specific types of income are taxable: wages, salaries, tips, net profits from business, interest, dividends, net gains from property sales
• Social Security benefits are not taxed
• Retirement income from pensions and IRA distributions is NOT taxable
• 401(k) and IRA distributions are not taxed
• No deduction for federal income tax paid

Pennsylvania Payroll & Withholding Rules

Employers must withhold Pennsylvania income tax at the flat 3.07% rate. Some municipalities in Pennsylvania impose local income taxes requiring additional withholding. Unemployment insurance is employer-paid only. [Source: Pennsylvania Department of Revenue, 2026]

Local Taxes in Pennsylvania

Philadelphia imposes a city wage tax of 3.75% for residents and 3.44% for non-residents working in the city. Other municipalities may impose local earned income taxes of 0.5% to 2% through school districts and counties. These are administered through local tax collection committees. [Source: Pennsylvania Department of Revenue, 2026]

Cost of Living Context

Pennsylvania's cost of living is about 4% below the national average. Housing costs are moderate, with Philadelphia being more expensive and other areas more affordable. Transportation and utilities are near average. Major cities include Philadelphia, Pittsburgh, and Allentown. [Source: Pennsylvania Department of Revenue, 2026]

Real-World Example: Pennsylvania

For a single filer earning $55,000/year in Philadelphia, Pennsylvania:

• Federal taxable income: ~$40,400 (after $14,600 standard deduction)
• Pennsylvania state tax: ~$1,690 (using 2026 brackets)
• Estimated take-home: ~$4,058/month (pre-FICA, pre-insurance)

Note: Actual results vary based on deductions, credits, and local taxes.

Pennsylvania FAQs

Q: What is the Pennsylvania income tax rate? [Source: Pennsylvania Department of Revenue, 2026] A: Pennsylvania has a flat income tax rate of 3.07%. [Source: Pennsylvania Department of Revenue, 2026]

Q: Does Pennsylvania tax Social Security benefits? A: No, Pennsylvania does not tax Social Security retirement benefits.

Q: Does Pennsylvania tax retirement income? A: No, pension and IRA distributions are not taxed in Pennsylvania.

Q: Does Philadelphia have a city wage tax? A: Yes, Philadelphia imposes a wage tax of 3.75% for residents and 3.44% for non-residents.

Q: Does Pennsylvania have a state sales tax? A: Yes, Pennsylvania has a state sales tax rate of 6%, with local additions in some cities. [Source: Pennsylvania Department of Revenue, 2026]

Q: Does Pennsylvania have local income taxes? A: Yes, many municipalities impose local earned income taxes of 0.5% to 2%.

Q: What types of income are taxable in Pennsylvania? A: Pennsylvania taxes eight specific classes of income including wages, net profits, interest, dividends, and capital gains.