Pennsylvania Income Tax Calculator
Pennsylvania’s flat 3.07% state tax is simple — but local Earned Income Tax and a quirky rule on 401(k) contributions catch many residents off guard. This tool covers all of it: federal, state, local EIT, FICA, and a full paycheck breakdown.
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How Pennsylvania Income Tax Actually Works
Pennsylvania keeps its state tax deceptively simple on paper: a flat 3.07% applied to eight defined classes of taxable income, with no standard deduction, no personal exemption, and no brackets. A cashier earning $30,000 and a surgeon earning $900,000 both pay exactly 3.07% of their taxable compensation — nothing more, nothing less, at the state level.
What makes Pennsylvania genuinely complicated is everything layered on top of that flat rate. Over 2,500 municipalities and school districts levy their own Local Earned Income Tax (EIT), ranging from roughly 0.5% up to 3.75% in Philadelphia — and your specific rate depends on a combination of where you live and where you work, tracked through a six-digit PSD (Political Subdivision) code. Philadelphia residents pay a city wage tax instead of the standard municipal EIT, and it’s among the highest local income taxes anywhere in the country.
The quirk almost nobody expects: unlike federal tax, Pennsylvania does not let you exclude traditional 401(k) or 403(b) employee contributions from taxable compensation. The IRS lets you defer tax on that money until retirement — Pennsylvania taxes it the year you contribute, then doesn’t tax it again when you withdraw in retirement. Practically, this means a $500/month 401(k) contribution lowers your federal tax bill but has zero effect on your PA state tax bill, which is a detail most paycheck calculators get wrong by simply mirroring the federal deduction across every state.
Frequently Asked Questions
Pennsylvania applies a flat 3.07% rate to taxable compensation for every resident, regardless of income level or filing status — there are no brackets and no graduated rates.
Yes — unusually, Pennsylvania taxes traditional 401(k) and 403(b) employee contributions as compensation in the year you contribute, even though the IRS lets you defer that tax federally. The upside is that PA does not tax qualified withdrawals in retirement.
It’s a separate tax levied by your specific municipality and school district, on top of the 3.07% state rate. Rates typically run 0.5%–2% in most areas, but Philadelphia residents pay a 3.74% city wage tax instead.
No. Pennsylvania fully exempts Social Security benefits, qualifying pension income, and qualified 401(k)/IRA distributions taken after retirement age — even though it taxed the 401(k) contributions going in.
Pennsylvania’s Department of Community and Economic Development (DCED) maintains an official Local Tax Finder where you can search by address to get your precise municipal and school district rate.
Pennsylvania applies a flat 3.07% rate to taxable compensation for every resident, regardless of income level or filing status — there are no brackets and no graduated rates.
Yes — unusually, Pennsylvania taxes traditional 401(k) and 403(b) employee contributions as compensation in the year you contribute, even though the IRS lets you defer that tax federally. The upside is that PA does not tax qualified withdrawals in retirement.
It’s a separate tax levied by your specific municipality and school district, on top of the 3.07% state rate. Rates typically run 0.5%–2% in most areas, but Philadelphia residents pay a 3.74% city wage tax instead.
No. Pennsylvania fully exempts Social Security benefits, qualifying pension income, and qualified 401(k)/IRA distributions taken after retirement age — even though it taxed the 401(k) contributions going in.
Pennsylvania’s Department of Community and Economic Development (DCED) maintains an official Local Tax Finder where you can search by address to get your precise municipal and school district rate.
Methodology: Calculations use Pennsylvania’s flat 3.07% Personal Income Tax rate, the 2025 IRS federal tax brackets and Child Tax Credit rules, and 2025 Social Security (6.2% to the $176,100 wage base) and Medicare (1.45% + 0.9% additional Medicare tax) rates. Local Earned Income Tax is estimated based on the jurisdiction type you select; verify your exact rate with the PA DCED Local Tax Finder. Pre-tax retirement contributions reduce federal taxable income only, consistent with Pennsylvania’s treatment of 401(k)/403(b) employee contributions as taxable compensation. This tool provides estimates for planning purposes only and is not tax, legal, or financial advice.