Pennsylvania taxes wages at a flat 3.07%, and most towns add a local earned income tax. Enter your pay and local rate to see your 2026 take-home pay.
Estimate only, based on 2026 federal and Pennsylvania rates. Your actual withholding depends on your W-4 and state forms. How we calculate.
Pennsylvania's personal income tax is a flat 3.07% with no standard deduction or personal exemption, so it applies from your first dollar.
Unlike most states, Pennsylvania does not exclude 401(k) contributions from state tax. You still save federal tax, but the 3.07% is charged on your full wages.
Almost every municipality adds a local earned income tax, usually around 1%. Philadelphia's wage tax is much higher. Employees also pay 0.07% for state unemployment insurance, and many towns charge a $52 yearly local services tax that this estimate leaves out.
| Item | 2026 rate |
|---|---|
| State income tax | 3.07% flat |
| Unemployment (employee) | 0.07% |
| Typical local earned income tax | About 1% |
| Philadelphia resident wage tax | 3.74% |
| Local services tax | Up to $52 a year |
Yes. Every taxpayer pays 3.07% on wages, with no brackets.
Pennsylvania taxes employee 401(k) contributions when you earn them, so only your federal tax goes down.
Your employer withholds it based on where you live and work. The Pennsylvania Department of Community and Economic Development publishes every municipality's rate.
Sources: Pennsylvania Department of Revenue; PA Department of Labor and Industry; IRS Revenue Procedure 2025-32. Last updated November 4, 2026.