Pennsylvania Paycheck Calculator (2026)

Pennsylvania's 3.07% flat rate looks like one of the lowest in the country, but the base it applies to is unusually broad. There is no standard deduction and no personal exemption, and Pennsylvania is the only state that taxes traditional 401(k) and 403(b) contributions as they go in; deferrals reduce your federal wages but not your Pennsylvania wages. The flip side is that retirees pay nothing: pensions, 401(k) and IRA withdrawals and Social Security are all exempt. A refundable Tax Forgiveness credit wipes out the tax for low-income households.

Almost every Pennsylvania municipality and school district levies an earned income tax, usually 1% combined, withheld by employers under the Act 32 system and settled through a county collector. Philadelphia is the exception in scale: its wage tax is 3.74% for residents and 3.43% for nonresidents through June 30, 2026, then 3.735% and 3.425% from July 1 under a five-year cut plan. Most workplaces also withhold a Local Services Tax of up to $52 a year, and employees pay a tiny 0.07% unemployment insurance contribution. None of the local taxes are in the estimate above.

Pennsylvania has reciprocity with Indiana, Maryland, New Jersey, Ohio, Virginia and West Virginia, so a Cherry Hill resident working in Center City pays New Jersey income tax rather than Pennsylvania's, though the Philadelphia wage tax still applies. New York and Delaware commuters get no such break and file in both states.