Pennsylvania Income Tax Calculator 2026

How Pennsylvania state income tax works (2026 overview)

Pennsylvania taxes residents on worldwide income and non-residents on Pennsylvania-source income. The PA Department of Revenue administers personal income tax through Form PA-40. Wage earners pay tax via payroll withholding using Form REV-1832 (state W-4 equivalent). Pennsylvania has used a flat 3.07% rate since 2004 - the lowest flat state income-tax rate in the United States.

Pennsylvania is unusual in several ways. First, it does not allow a standard deduction or personal exemption at the state level - tax applies from the first dollar of taxable income. Second, it does not allow most itemized deductions, including the federal SALT deduction, mortgage interest, charitable contributions, or 401(k) contributions. Third, Pennsylvania taxes income from eight specific classes (compensation, interest, dividends, business income, rents/royalties, capital gains, estate/trust income, gambling winnings) and does NOT permit losses in one class to offset gains in another.

Pennsylvania fully exempts retirement income for taxpayers age 59-1/2 or older - Social Security, 401(k), IRA, pension and most annuity distributions all escape state tax. This combination of a low flat rate plus a generous retirement exemption makes Pennsylvania one of the most popular landing spots for high-income retirees relocating from New Jersey, New York and Maryland.

On top of the 3.07% state tax, Pennsylvania has the unusual local Earned Income Tax (EIT) system. Almost every Pennsylvania municipality and school district levies a local EIT of 1% to 3.9% on earned income (wages, self-employment, but NOT investment income). Philadelphia's wage tax is the highest at 3.75% for residents and 3.44% for non-residents who work in the city. Pittsburgh charges 1% city EIT + 2% school district EIT for a combined 3% local rate.

Pennsylvania has income tax reciprocity with Indiana, Maryland, New Jersey, Ohio, Virginia and West Virginia - you pay tax only to PA if you live in PA but work in any of those states (and vice versa). No reciprocity with New York or Delaware, so commuters into those states file two state returns.

Pennsylvania state income tax brackets (2025-2026, single filer)

Pennsylvania has a flat 3.07% state income tax - the lowest flat state rate in the United States. Unlike most states, Pennsylvania does not allow a standard deduction or personal exemption.

Pennsylvania does NOT allow a standard deduction. Most itemized deductions (including the federal SALT deduction and 401(k) contributions) are not deductible at the state level. Retirement income and Social Security are exempt.

Pennsylvania take-home pay calculator

Enter your annual gross salary and filing status. The calculator runs federal 2026 brackets + Pennsylvania state rules + FICA in your browser - nothing leaves the page.

Pennsylvania take-home examples at common salary levels (2026, single filer)

Here is what a single filer keeps after federal income tax, Pennsylvania state tax, and FICA at five common salary levels in 2026. All numbers assume only the standard deduction and no retirement contributions, health-insurance premiums, or state-specific credits - the simplest case.

FICA = 6.2% Social Security on the first $176,100 of wages plus 1.45% Medicare on all wages. Married-filing-jointly numbers are roughly 5-8% lower at every income level because the federal brackets are nearly twice as wide and federal standard deduction doubles.

How Pennsylvania compares to neighbors (New York, New Jersey, Ohio, West Virginia)

Same scenario for every state: $75,000 gross annual salary, single filer, no other deductions, 2026 federal brackets, $15,000 standard deduction. The only difference is the state tax line.

Effective state rate = state income tax divided by gross income. Federal tax ($8,253) and FICA ($5,738) are identical across all states.

Pennsylvania tax-planning checklist for 2026

• Don't expect a 401(k) state deduction. Pennsylvania is highly unusual: 401(k) and 403(b) contributions are NOT deductible from PA state taxable income. PA taxes the contribution but not the eventual qualified withdrawal (for taxpayers 59-1/2+). The opposite of every other state with income tax. Plan accordingly - the PA-specific advantage shows up only in retirement.
• Maximize Roth conversions before retirement age. Because PA taxes 401(k) contributions on the way in but not on the way out (after 59-1/2), the PA tax math for Roth conversions is different from other states - the conversion itself may not increase your PA tax bill if the source was already PA-taxed.
• Claim the PA Tax Forgiveness Credit. Lower-income PA residents can have 100% of their state tax forgiven if eligible. Single filers with PA taxable income under approximately $8,750 (2024) qualify for 100% forgiveness; partial forgiveness extends up to about $19,250. The credit is also extended to dependent-claiming families.
• Use the PA 529 deduction. PA allows up to $19,000 single / $38,000 joint per year (matching the federal annual gift tax exclusion) of 529 contributions to be deducted from PA taxable income. At 3.07%, that's up to $583 / $1,167 in state tax savings.
• Use PA reciprocity if you commute to Indiana, Maryland, New Jersey, Ohio, Virginia or West Virginia. File the reciprocity form with your out-of-state employer to stop their withholding and pay only PA.
• Mind the Philadelphia city wage tax. If you live in Philadelphia, your effective state + city rate is roughly 6.82% (3.07% state + 3.75% city). If you live just over the border in Bucks, Chester, Delaware, or Montgomery counties and work in Philly, you pay the city's 3.44% non-resident rate plus PA's 3.07%, which can still be lower than living in the city even with the longer commute.
• Plan for retirement in Pennsylvania. Combined with full retirement-income exemption (Social Security + 401(k) + IRA + pension after age 59-1/2), PA's 3.07% rate on any pre-retirement income makes it one of the most favorable states in the country for retirees, especially compared to neighboring NY and NJ.

Frequently asked questions about Pennsylvania income tax

Key terms used on this page

Marginal tax rate

The tax rate applied to your last dollar of taxable income - your bracket. If you earn $90,000 in Pennsylvania and the rate that applies to your last dollar is 5.85%, your marginal rate is 5.85%, even though most of your income is taxed at lower rates.

Effective tax rate

Your total tax divided by your gross income, expressed as a percentage. Because lower brackets tax earlier dollars at lower rates, your effective rate is always less than your marginal rate in progressive states. In a flat-tax state, marginal and effective rates are usually very close (offset only by deductions and exemptions).

Standard deduction

A fixed amount you subtract from gross income before calculating tax. For 2026 federal returns, the standard deduction is $15,000 single, $30,000 married filing jointly, and $22,500 head of household. Many states (including Pennsylvania if it offers one) have separate state standard deductions at different amounts.

FICA (Social Security + Medicare)

The federal payroll tax that funds Social Security and Medicare. As an employee, you pay 6.2% Social Security on the first $176,100 of 2026 wages plus 1.45% Medicare on all wages. Self-employed earners pay both halves (15.3% total) but can deduct half on their federal return.

Withholding

The tax your employer takes out of each paycheck and remits to the IRS and your state on your behalf. Adjusted via the federal Form W-4 (federal) and your state's W-4 equivalent. Over-withholding produces a refund; under-withholding produces an April bill (and possibly a penalty).

Filing status

Single, Married Filing Jointly (MFJ), Married Filing Separately (MFS), Head of Household (HoH), or Qualifying Widow(er). Determines which bracket schedule applies and the size of your standard deduction. Most married couples should compare MFJ vs MFS each year - MFS is occasionally better when one spouse has high medical expenses or unreimbursed business losses.

Tax credit vs deduction

A deduction reduces your taxable income (saves you tax = deduction x marginal rate). A credit reduces your tax dollar-for-dollar (saves you tax = credit amount). A $1,000 credit is worth more than a $1,000 deduction at the same income level.

Methodology and sources

Federal brackets: The 2026 federal income tax brackets used by the calculator (10%, 12%, 22%, 24%, 32%, 35%, 37% with single thresholds of $11,600, $47,150, $100,525, $191,950, $243,700, $609,350) are from the IRS Revenue Procedure published for tax year 2026, adjusted from 2025 for inflation. The 2026 federal standard deduction is $15,000 single, $30,000 married filing jointly, and $22,500 head of household.

State rules: The Pennsylvania state tax brackets, standard deduction, and other state-specific rules used on this page are sourced from the official Pennsylvania Department of Revenue (or equivalent state authority) for tax year 2025-2026.

FICA: Social Security wage base of $176,100 for 2026 (taxed at 6.2%) and Medicare tax of 1.45% on all wages. The Additional Medicare Tax (0.9%) on wages above $200,000 single / $250,000 joint is NOT modeled in the calculator above - it applies to high earners and would shave a small amount off the displayed take-home at those levels.

What the calculator does NOT model:

• Local city, county, or school district income tax (relevant in OH, PA, MI, NY-NYC, MD, AL among others)
• Pre-tax 401(k), 403(b), 457(b), HSA, and FSA contributions (each would reduce both federal AND state taxable income)
• Pre-tax health, dental, and vision insurance premiums
• State-specific credits (EITC, dependent care, retirement income exclusion, etc.)
• Itemized deductions for taxpayers who itemize instead of taking the standard deduction
• The federal Additional Medicare Tax (0.9%) on high earners
• The federal Net Investment Income Tax (3.8%) on investment income for high earners
• Alternative Minimum Tax (AMT) at the federal or state level

Limitations: The calculator is an estimate, not tax advice. For any decision with material financial consequences, consult a qualified tax professional licensed in Pennsylvania. Tax rules change frequently - this page reflects rules as of the date below.

Page generated by 3Tej's state-tax page builder. Last updated 2026. Rules current as of January 2026 - check the official Pennsylvania Department of Revenue website (or your state equivalent) for any changes during the tax year.

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