Pennsylvania has one of the lowest flat income tax rates in the country at just 3.07% — the same rate applies to every dollar of income regardless of how much you earn. There’s no standard deduction, no brackets, and no phase-outs. Your Pennsylvania state tax is a straightforward 3.07% of your wages.
Quick answer: On a $75,000 salary, a Pennsylvania resident pays exactly $2,303 in state income tax (3.07% × $75,000). Philadelphia residents add 3.75% city wage tax on top, bringing the total to $5,910. Residents of other Pennsylvania cities may also owe local Earned Income Tax (EIT).
Pennsylvania Income Tax — Salary to Take-Home Table (2026)
PA tax = Gross Salary × 3.07%. No standard deduction for wage income. Federal taxes not included.
| Gross Salary | PA Income Tax (3.07%) | Philadelphia Add’l (3.75%) | Non-Philly Take-Home | Philly Take-Home |
|---|---|---|---|---|
| $30,000 | $921 | $1,125 | ~$22,700 | ~$21,800 |
| $40,000 | $1,228 | $1,500 | ~$29,700 | ~$28,500 |
| $50,000 | $1,535 | $1,875 | ~$36,600 | ~$35,200 |
| $60,000 | $1,842 | $2,250 | ~$43,600 | ~$41,900 |
| $70,000 | $2,149 | $2,625 | ~$50,600 | ~$48,600 |
| $75,000 | $2,303 | $2,813 | ~$54,000 | ~$51,800 |
| $80,000 | $2,456 | $3,000 | ~$57,400 | ~$55,000 |
| $90,000 | $2,763 | $3,375 | ~$64,300 | ~$61,700 |
| $100,000 | $3,070 | $3,750 | ~$71,200 | ~$68,300 |
| $120,000 | $3,684 | $4,500 | ~$84,100 | ~$80,800 |
| $150,000 | $4,605 | $5,625 | ~$100,800 | ~$97,000 |
| $200,000 | $6,140 | $7,500 | ~$129,300 | ~$124,700 |
| $300,000 | $9,210 | $11,250 | ~$185,700 | ~$179,700 |
Philadelphia Wage Tax applies to residents. Non-residents working in Philadelphia pay 3.44% (not 3.75%). Other PA municipalities levy Earned Income Tax — confirm current local rates. Verify at revenue.pa.gov.
How Pennsylvania Income Tax Works
Pennsylvania’s system is the simplest in any taxed state:
Formula: PA Tax = Taxable compensation × 3.07%
Unlike most states, Pennsylvania taxes each class of income separately. Wages, salaries, and tips are taxed at 3.07%. Other income classes — such as net profits from business, rents, royalties, and gambling winnings — are also taxed at 3.07% but reported separately.
There is no standard deduction. However, you can deduct unreimbursed employee business expenses, union dues, and certain other work-related expenses against wage income.
Worked Examples
Example 1: $60,000 salary (non-Philadelphia resident)
| Item | Amount |
|---|---|
| Gross salary | $60,000 |
| Standard deduction | $0 (none) |
| PA taxable wages | $60,000 |
| PA income tax (3.07%) | $1,842 |
| Local EIT (varies; illustrative 1%) | $600 |
| Total PA state + local (illustrative) | $2,442 |
| Effective combined rate | 4.07% |
Example 2: $80,000 salary (Philadelphia resident)
| Item | Amount |
|---|---|
| Gross salary | $80,000 |
| PA income tax (3.07%) | $2,456 |
| Philadelphia Wage Tax (3.75%) | $3,000 |
| Total state + city tax | $5,456 |
| Effective combined rate | 6.82% |
Pennsylvania vs. Neighboring States: Tax on $100,000 (Single, Illustrative)
Confirm current figures for each comparison state before relying on this table, as several jurisdictions have adjusted rates:
| State | Tax Type | State Tax ($100K, approx.) | Notes |
|---|---|---|---|
| Pennsylvania | 3.07% flat | $3,070 | + local EIT |
| Philadelphia (PA) | 3.07% + 3.75% city | $6,820 | High city wage tax |
| New Jersey | Graduated up to 10.75% | ~$3,500-$4,900 | $100K falls in a mid-range bracket |
| New York | Graduated up to 10.9% | ~$4,950 | + NYC tax if applicable |
| Maryland | Graduated up to 5.75% | Confirm current figure | + county tax up to ~3.2% |
| Delaware | Graduated up to 6.6% | Confirm current figure | — |
| Ohio | Two-bracket, top 3.5% (first $26,050 tax-free) | ~$2,034 | + local tax varies by city |
What Pennsylvania Does NOT Tax
Pennsylvania has some of the most generous retirement income exclusions of any state:
- Social Security benefits — fully exempt from PA state tax
- Traditional pension income — distributions from most public and private pensions are exempt for retirees who have reached normal retirement age
- 401(k) and IRA distributions — exempt once you’ve reached the plan’s normal retirement age and are receiving the income as retirement distributions
- Military pay — active duty and National Guard pay is exempt
- Unemployment compensation — exempt from PA state income tax (but taxable federally)
Retirement impact: A Pennsylvania retiree receiving $50,000 in Social Security plus $30,000 from a pension (at normal retirement age) pays $0 in Pennsylvania state income tax on that $80,000.
Pennsylvania Local Earned Income Tax (EIT)
Beyond state tax, most Pennsylvania municipalities and school districts levy a local Earned Income Tax. Confirm current rates for your specific municipality, as these were not independently re-verified this session:
| Location | Typical EIT Rate (confirm current) |
|---|---|
| Philadelphia | 3.75% (resident) / 3.44% (non-resident) |
| Pittsburgh | ~3.0% |
| Most suburbs | ~1.0%–2.0% |
| Rural municipalities | ~0.5%–1.0% |
Your employer withholds local EIT based on your work location (for non-residents) or home municipality (for residents). You may owe the higher of the work-location or home-location rate.
How to Reduce Your Pennsylvania Tax
- Contribute to retirement accounts — PA taxes wages now but generally exempts distributions in retirement once you’re at normal retirement age. Traditional 401(k) contributions reduce federal tax now; the future PA exemption makes PA particularly favorable for retirement savers.
- Deduct unreimbursed employee expenses — PA allows deductions for union dues, work-related travel, and uniforms that federal law no longer allows since 2018.
- Rent or own a home outside Philadelphia — if your job allows remote work, living outside city limits saves 3.75% of wages vs. Philadelphia residency.
- Business income — net losses from one PA income class cannot offset gains from another class. Keep careful records of business income and expenses.
- PA 529 plan — while there’s no PA state income tax deduction for 529 contributions, confirm current details as this can vary.
Related Guides
- Pennsylvania Income Tax Guide 2026 — Rates, Local Taxes & Deductions
- 9 States With No Income Tax 2026
- Federal Income Tax Brackets 2026
- State Income Tax Rates 2026 — All 50 States
- $70,000 Salary After Taxes 2026
- $100,000 Salary After Taxes 2026
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