How Pennsylvania taxes your paycheck
Pennsylvania employers withhold a flat 3.07% of your pay for state income tax. The rate is the same at every income, and your filing status and dependents do not change it.
A traditional 401(k) does not lower your Pennsylvania tax, because the state taxes that money in the year you earn it. Pre-tax health insurance premiums paid through your employer's plan are not taxed by the state.
Outside Philadelphia, your employer also withholds a local earned income tax: the higher of the resident rate where you live and the non-resident rate where you work. The general limit is a combined 1% for a municipality and its school district, but state law lets some places charge more. Pittsburgh residents pay 3%, with 1% going to the city and 2% to the school district. The local tax is figured on the same pay as the state tax.
Philadelphia has its own wage tax instead. Since July 1, 2026 it is 3.735% for residents and 3.425% for people who work in the city but live elsewhere. It applies to your whole paycheck: money you put into a 401(k) is taxed, and so are pre-tax health premiums, which the state tax leaves out.
Municipalities can also charge a local services tax to people who work there. It is a flat yearly amount, generally no more than $52, taken in equal parts from each paycheck. Places that charge more than $10 must exempt anyone who earns less than $12,000 there in the year. Philadelphia does not charge it.
Every employee also pays 0.07% of gross wages toward unemployment compensation, with no wage limit.
| Deduction | Rate | Applies to wages up to |
|---|---|---|
| Federal income tax | 10% to 37% | No limit |
| Social Security | 6.2% | $184,500 |
| Medicare | 1.45% (2.35% over $200,000) | No limit |
| Pennsylvania income tax | 3.07% | No limit |
| PA unemployment compensation | 0.07% | No limit |
- PA unemployment compensation: Employees pay 0.07% of gross wages in 2026, which is 70 cents for every $1,000, with no wage limit.
Local taxes in this calculator
| Where you live and work | Local income tax | Local services tax |
|---|---|---|
| Philadelphia resident | 3.735% | None |
| Work in Philadelphia, live outside the city | 3.425% | None |
| Live and work in Pittsburgh | 3% | $52 a year |
| Somewhere else in Pennsylvania | Set by your municipality and school district | Set by the place you work |
For anywhere else, the calculator starts with a 1% local earned income tax and a $52 local services tax. Rates differ from one municipality to the next, so replace these starting values with your own. Find your rates by address (Pennsylvania DCED)
How to use the Pennsylvania paycheck calculator
Enter your salary, or your hourly wage and hours, choose how often you are paid and pick the filing status on your W-4. The calculator estimates your Pennsylvania (PA) take-home pay for each paycheck and for the year, after federal income tax, Social Security, Medicare, Pennsylvania income tax, Pennsylvania payroll deductions and local taxes.
It follows the published withholding formulas that employers' payroll systems use, so it works as a paycheck estimator for a job offer, a raise or a change to your W-4. Open "401(k), benefits and W-4 details" to add pre-tax deductions, dependents or extra withholding. Your real paycheck can differ if your employer takes out deductions the calculator does not know about.
Pennsylvania take-home pay examples
Single filer, paid every two weeks, standard W-4 with no dependents, no 401(k) or pre-tax benefits, in Pennsylvania with a 1% local earned income tax and a $52 local services tax.
| Salary | Per paycheck | Per year | Taxes per year |
|---|---|---|---|
| $30,000 | $961.19 | $24,991.00 | $5,009.00 |
| $40,000 | $1,254.31 | $32,612.00 | $7,388.00 |
| $50,000 | $1,547.43 | $40,233.00 | $9,767.00 |
| $60,000 | $1,840.52 | $47,854.00 | $12,146.00 |
| $75,000 | $2,247.51 | $58,435.50 | $16,564.50 |
| $100,000 | $2,884.15 | $74,988.00 | $25,012.00 |
| $150,000 | $4,135.73 | $107,529.00 | $42,471.00 |
| Hourly rate | Per week | Per year | Before taxes |
|---|---|---|---|
| $15.00 an hour | $498.18 | $25,905.52 | $31,200 |
| $20.00 an hour | $650.60 | $33,831.36 | $41,600 |
| $25.00 an hour | $803.02 | $41,757.20 | $52,000 |
| $30.00 an hour | $955.44 | $49,683.04 | $62,400 |
| $40.00 an hour | $1,228.17 | $63,864.72 | $83,200 |
| $50.00 an hour | $1,493.01 | $77,636.40 | $104,000 |
Pennsylvania paycheck questions
What is the Pennsylvania state income tax rate in 2026?
3.07%. It is a flat rate, so your employer withholds 3.07% of your pay whatever your income, filing status or number of dependents.
Does a 401(k) lower my Pennsylvania taxes?
No. Pennsylvania taxes traditional 401(k) contributions when you earn the money, so they lower your federal income tax but not your state or local tax.
What is the Philadelphia wage tax in 2026?
Since July 1, 2026 the wage tax is 3.735% for Philadelphia residents and 3.425% for non-residents who work in the city. From July 1, 2025 through June 30, 2026 the rates were 3.74% and 3.43%.
How do I find my local earned income tax rate?
Use the address lookup from the Pennsylvania Department of Community and Economic Development, linked in the sources below. Enter your home and work addresses and it shows the earned income tax your employer should withhold and any local services tax.
What is the local services tax?
A flat yearly tax that Pennsylvania municipalities can charge people who work there, generally no more than $52. Your employer takes it in equal parts from each paycheck. Places that charge more than $10 must exempt workers who earn less than $12,000 there in the year.
Why is there an unemployment deduction on my Pennsylvania paycheck?
Pennsylvania employees pay part of the state's unemployment compensation tax. In 2026 the employee rate is 0.07% of gross wages, with no wage limit.
Sources
- Pennsylvania Department of Revenue: employer withholding
- Pennsylvania Department of Revenue: personal income tax guide, gross compensation
- Pennsylvania Department of Labor & Industry: unemployment compensation tax highlights
- Pennsylvania DCED: find your local withholding rates by address
- Pennsylvania DCED: Act 32 earned income tax FAQ
- Pennsylvania DCED: Act 32 policy and procedure manual
- Pennsylvania DCED: Local Services Tax
- City of Philadelphia: Wage Tax rates
- City of Philadelphia: income that is and is not subject to the Wage Tax
- City of Pittsburgh: tax descriptions
- IRS: tax inflation adjustments for tax year 2026
- IRS Publication 15-T (2026), Federal Income Tax Withholding Methods
- Social Security wage base for 2026
- 2026 401(k) contribution limit
Tax figures last reviewed October 7, 2026. How we calculate