PA Paycheck Calculator 2026

Pennsylvania's flat 3.07% income tax

Pennsylvania withholds a flat 3.07% of compensation from every paycheck, with no allowances, no standard deduction and no state withholding certificate to fill out^[pa1][pa2]. The employer multiplies the period's taxable pay by 3.07%, and a bonus or commission paid that period is simply added in and taxed at the same rate.

Residents owe it on pay for work done anywhere; nonresidents owe it only on work performed in Pennsylvania. Residents of Indiana, Maryland, New Jersey, Ohio, Virginia and West Virginia can be exempted under reciprocal agreements, in which case the employer withholds their home state's tax instead.

What counts as taxable pay is where Pennsylvania differs from federal rules^[pa3]:

So a 6% 401(k) on $60,000 cuts federal withholding from $5,020 to $4,588 a year, while Pennsylvania tax stays at $1,842. Health premiums taken through a Section 125 plan do lower the state tax, but not the Philadelphia wage tax.

Local taxes in the paycheck calculator PA: Philadelphia and EIT

Most Pennsylvania paychecks also carry a local earned income tax, and Philadelphia has its own, larger wage tax. Outside Philadelphia, Act 32 makes the employer withhold the higher of two rates: the total resident rate where you live (municipality plus school district) or the non-resident rate where you work^[pa4]. Employees give the employer a Residency Certification Form with the six-digit PSD codes for those places.

The general limit under the Local Tax Enabling Act is 1% in total, split 0.5% and 0.5% when both the municipality and the school district levy it. Some places go higher: home-rule municipalities (for their residents only), financially distressed cities, school districts whose voters approved up to 1.5%, and the Pittsburgh School District, which may levy up to 2%^[pa7]. Local EIT follows the state definition of compensation, so 401(k) deferrals are taxed and Section 125 health premiums are not.

Philadelphia residents pay the city wage tax wherever they work, and Act 32 does not apply to them; non-residents pay the non-resident rate on work done in the city^[pa5][pa6]. The city taxes gross pay, including 401(k) deferrals and pre-tax benefit premiums. Its rates were cut on July 1, 2026:

The calculator uses the current Philadelphia rates for the whole year; paychecks from January to June 2026 used the slightly higher rates in the first row. New Jersey residents who commute into Philadelphia still owe the non-resident wage tax, because the Pennsylvania–New Jersey reciprocal agreement does not excuse local wage taxes^[pa10].

Local Services Tax and PA unemployment: pa tax calculator extras

Two small flat-rate items finish a Pennsylvania pay stub: the Local Services Tax of up to $52 a year and a 0.07% unemployment compensation deduction. The LST is levied where you work, and no one pays more than $52 a year in total even with several jobs^[pa8]. Employers collect it in equal shares per payroll period, rounded down to the cent: $1.00 a week, $2.00 every two weeks, $2.16 twice a month or $4.33 a month. Where the levy is more than $10, people who will earn less than $12,000 in that municipality are exempt after filing an exemption certificate. Tick the LST box in the calculator to add it.

Pennsylvania also takes unemployment tax from employees: 0.07%, or 70 cents per $1,000 of gross wages, with no wage cap^[pa9]. On $60,000 that is $42.12 a year. The employer's own unemployment tax applies to the first $10,000 of wages and is not taken from your check.

Living across the river changes the picture: a New Jersey resident working in Pennsylvania pays New Jersey's graduated tax instead of the 3.07%, while an Ohio resident is also covered by reciprocity. For hourly workers, the time and a half calculator shows how overtime adds to the 3.07% base.

Pennsylvania take-home pay on common salaries

Worked example: $60,000 in Pennsylvania

1. Gross pay: $60,000 a year ÷ 26 paychecks = $2,307.69.
2. Federal income tax: the IRS percentage method annualizes $60,000 of taxable wages, subtracts the $8,600 built into the 2026 tables for a standard W-4, and applies the brackets (top rate 12%): $193.08^[p15t].
3. FICA: 6.2% Social Security $143.08 plus 1.45% Medicare $33.46^[tc751].
4. Pennsylvania: Pennsylvania income tax (3.07%) $70.85, Local earned income tax (1%) $23.08, PA unemployment (0.07%) $1.62.
5. Net pay: $1,842.53 per paycheck, $47,906 a year (79.8% of gross).

Compare Pennsylvania with nearby states

Same $60,000 salary, different state: New Jersey $1,845.45 · Ohio $1,883.75 · New York $1,824.01 per paycheck. The state tax calculator ranks every state we cover on one salary, and the paycheck calculator switches states in one click. Hourly? Add overtime with the time and a half calculator.