How the Pennsylvania Paycheck Calculator Works

This calculator breaks down your Pennsylvania paycheck by accounting for federal income tax, PA state income tax (3.07% flat rate), local earned income tax, and FICA taxes. Pennsylvania has one of the simpler state tax systems (flat 3.07%), but local taxes add complexity since nearly every municipality levies its own earned income tax.

The calculation follows this formula:

Here’s what happens. Your gross pay gets reduced first by pre-tax deductions (401(k), health insurance, HSA). Federal income tax applies using 2025 IRS brackets. PA state tax applies at a flat 3.07% rate to your gross income (no deductions or exemptions reduce it). Local earned income tax applies based on where you work (typically 1-2%, but Philadelphia is 3.79% for residents and 3.44% for non-residents). Social Security takes 6.2% up to $176,100. Medicare takes 1.45% plus 0.9% additional on high earners. What’s left is your net pay.

Understanding Pennsylvania Taxes

PA’s 3.07% Flat Income Tax

Pennsylvania uses a flat 3.07% state income tax rate. Everyone pays the same percentage whether you make $30,000 or $300,000. Unlike federal tax, PA doesn’t allow standard deductions or personal exemptions. The 3.07% applies to your gross income, period. Simple math, but no breaks for lower earners.

This makes PA’s effective state tax rate consistent across income levels. A $50,000 earner pays $1,535 in PA state tax. A $200,000 earner pays $6,140. Same rate, different amounts.

Local Earned Income Tax

Pennsylvania has over 2,500 municipalities, and most levy local earned income tax. Rates typically range from 0.5% to 2% outside Philadelphia and Pittsburgh. Philadelphia charges 3.79% for residents and 3.44% for non-residents who work there. Pittsburgh charges 3% for residents and 1% for non-residents.

If you live and work in the same municipality, you pay one local tax. If you work in a different municipality than where you live, you might pay tax to both (work location and residence location), but the total is usually capped at your residence rate. It’s complicated, so check with your local tax collector.

No Deductions or Allowances for PA State Tax

PA doesn’t use a W-4 equivalent for state withholding. The 3.07% applies to gross wages with no adjustments. You can’t claim allowances or deductions to reduce PA withholding like you can for federal. This makes calculation simple but offers no flexibility.

Real Pennsylvania Paycheck Examples

Annual Salary	Location	Gross Biweekly	Total Tax	Net Biweekly
$50,000	Suburbs (1% local)	$1,923.08	$515.00	$1,408.08
$50,000	Philadelphia	$1,923.08	$590.00	$1,333.08
$75,000	Pittsburgh	$2,884.62	$850.00	$2,034.62
$100,000	Suburbs (1% local)	$3,846.15	$1,175.00	$2,671.15
$100,000	Philadelphia	$3,846.15	$1,320.00	$2,526.15

Note: Examples assume single filing status, 1 federal allowance, no pre-tax deductions. Actual amounts vary based on individual circumstances.

Pennsylvania vs. Other States Comparison

State/City	State + Local Tax	$100k Net Pay	vs. PA Suburbs
PA (suburbs, 1% local)	~4%	$72,000	Baseline
Philadelphia	~7%	$69,000	-$3,000
Texas	0%	$76,000	+$4,000
New York	~6.5%	$71,000	-$1,000
Ohio	~3%	$73,000	+$1,000

Pennsylvania suburbs offer moderate tax burden. Philadelphia’s combined 6.86% (3.07% state + 3.79% city) approaches high-tax states but stays below NYC or California. Rural and suburban PA municipalities typically total 4-5% (state + local), which is reasonable compared to neighboring states.

Edge Cases and Common Questions

What If I Work in One PA Municipality But Live in Another?

You typically pay local tax to both your work municipality and residence municipality, but the total is capped. If your residence charges 1.5% and your work location charges 1%, you pay 1% to work and 0.5% to residence (total 1.5%, your residence rate). If work charges more than residence, you only pay the work rate. PA law prevents double taxation beyond your residence rate.

What If I Live in PA But Work in Another State?

You pay income tax to the state where you work, not PA. PA then gives you a credit for taxes paid to the other state so you don’t get double-taxed on the same income. If you work in Delaware, New Jersey, Maryland, or Ohio, PA has reciprocal agreements that simplify withholding and filing.

What If I Move to PA Mid-Year?

You pay PA taxes only on income earned while living in PA. If you move from Texas to PA in July, your first six months have no PA tax. Your last six months get PA state tax (3.07%) plus local tax. File a part-year resident return. Update your W-4 and notify your employer of your PA address for proper withholding.

What About Philadelphia Wage Tax for Non-Residents?

Non-residents who work in Philadelphia pay 3.44% city wage tax (lower than the 3.79% residents pay). If you live in the suburbs but work downtown, you pay 3.44% to Philly and potentially a small local tax to your home municipality. Total combined tax depends on your specific residence.

What If My Local Tax Rate Changes?

Municipalities can adjust local tax rates, but changes are relatively rare. If your local rate increases from 1% to 1.5%, your net pay drops by 0.5% of gross income. On a $60,000 salary, that’s about $300 annually or $12 per biweekly paycheck. Check your municipality’s website for current rates and announcements.

What If I’m Self-Employed in Pennsylvania?

Self-employed individuals pay both halves of FICA (15.3%) plus PA state tax (3.07%) plus local earned income tax. You make quarterly estimated tax payments. PA also has a separate local services tax (LST) of up to $52 annually in some municipalities, typically withheld from paychecks but paid directly if self-employed.

What If I Retire in Pennsylvania?

Pennsylvania doesn’t tax most retirement income. Social Security, pensions, 401(k) withdrawals, and IRA distributions are all exempt from PA state tax. This makes PA very retirement-friendly. You still pay federal tax on retirement income, but avoiding 3.07% state tax saves thousands annually for retirees.

Understanding Gross vs. Net in Pennsylvania

The 28-33% Rule

Expect to lose roughly 28-33% of gross pay to all taxes in PA suburbs (federal, state, local, FICA). Philadelphia can hit 32-38% due to higher city wage tax. A $70,000 salary nets around $48,000-50,000 depending on location and filing status. Always budget with net pay, not gross.

Pre-Tax Benefits Matter

Pre-tax deductions reduce federal taxable income but not PA state tax or local tax (since those apply to gross wages). If you’re in the 22% federal bracket, every $1,000 in 401(k) saves you $220 federal + $76.50 FICA = $296.50 in taxes. PA state tax and local tax still apply to the gross amount, so you don’t save on those.

Should You Work in Pennsylvania?

When It Makes Sense

PA offers moderate taxes compared to high-tax states. If you’re considering Philadelphia or Pittsburgh for career opportunities in healthcare, education, finance, or tech, the combined 6-7% state and local tax is high but not NYC or California high. Suburbs outside major cities offer even lower taxes (4-5% combined).

PA’s retirement income exemption makes it attractive for long-term planning. Work your career in PA, build retirement accounts, and pay zero PA tax on retirement distributions.

When It Doesn’t Make Sense

Don’t move to PA for a marginal salary bump without accounting for total tax burden and cost of living. A $95,000 offer in Philadelphia nets roughly the same as $85,000 in a zero-tax state after accounting for city wage tax. Factor in commute costs, housing prices, and quality of life.

Frequently Asked Questions

Does Pennsylvania Tax Retirement Income?

No. PA exempts Social Security, pensions, 401(k) withdrawals, IRA distributions, and annuities from state income tax. This is a huge advantage for retirees. A $60,000 annual retirement income saves $1,842 in PA state tax compared to states that tax retirement income.

How Do I Find My Local Tax Rate?

Check your municipality’s website or contact your local tax collector. The PA Department of Revenue maintains a list of local tax rates, but it’s not always current. Your employer should know the correct rate for withholding. Most PA suburbs charge 1-2%. Philadelphia is 3.79% (residents) or 3.44% (non-residents). Pittsburgh is 3% (residents) or 1% (non-residents).

Can I Reduce PA State Tax Withholding?

No. PA doesn’t use a withholding certificate like federal W-4. The 3.07% applies to all wages with no adjustments. You can’t claim allowances or deductions to reduce PA withholding. The only way to reduce PA tax is to reduce gross wages (which you probably don’t want to do).

What’s the Local Services Tax (LST)?

LST is a separate flat-rate tax (up to $52 annually) charged by some PA municipalities and school districts. It’s typically withheld from paychecks in small increments. If you make under $12,000 annually, you’re exempt. This calculator doesn’t include LST since it’s a fixed annual amount, not a percentage of wages.

How Accurate Is This Calculator?

Very accurate for standard W-2 employees using 2025 tax tables. Where it might differ: your specific local tax rate (verify with your municipality), LST (not included), union dues, or employer-specific withholding. Small differences (under $50 per paycheck) are normal. For precise numbers, check your actual paystub.

Do All PA Municipalities Have Local Tax?

Most do, but not all. About 95% of PA municipalities levy some form of earned income tax. Rates vary from 0.5% to 3.79% (Philadelphia). A few small municipalities have zero local tax, but they’re rare. Always verify your specific location’s rate.

Maximizing Your Pennsylvania Take-Home Pay

Max Federal Pre-Tax Accounts

Contribute to 401(k) ($23,500 in 2025), HSA ($4,300 single, $8,550 family), and FSA ($3,300). These reduce federal taxable income, saving 22-37% federal plus 7.65% FICA. They don’t reduce PA state tax or local tax, but the federal savings alone make them worthwhile.

Consider Living Outside Philadelphia or Pittsburgh

Suburban municipalities near Philly and Pittsburgh typically charge 1-2% local tax versus 3.79% or 3% in the cities. Commuting from suburbs saves 1.5-2.5% annually. On a $80,000 salary, that’s $1,200-2,000 saved per year. Factor in commute costs and time, but the tax savings are real.

Plan for Retirement in PA

PA’s retirement income exemption makes it attractive for retirees. If you build your career here, you’ll pay 3.07% state tax on working income but zero on retirement income. Over a 30-year retirement, that saves tens of thousands compared to states that tax retirement distributions.