Pennsylvania Paycheck Calculator 2026

Pennsylvania takes a refreshingly straightforward approach to state income tax: a flat 3.07% rate on all taxable income, regardless of how much you earn. Unlike California and New York, where climbing into a higher bracket means each additional dollar is taxed at a steeper rate, Pennsylvania treats every dollar of income the same. A teacher earning $45,000 and a software engineer earning $200,000 both pay the same 3.07% state tax rate on their earnings. This simplicity makes it easy to estimate your state tax liability — just multiply your taxable income by 0.0307.

However, the apparent simplicity of the flat rate conceals a more complex reality at the local level. Pennsylvania is somewhat unusual in that it authorizes municipalities and school districts to levy their own Earned Income Tax (EIT) on top of the state rate. Over 2,500 local taxing jurisdictions across Pennsylvania impose an EIT, and the rates vary widely. The default local EIT rate is 1.0% (split between the municipality and school district), but in many areas it runs higher — particularly in the Philadelphia region and other populated counties.

Philadelphia is the most significant exception. The city imposes a resident wage tax (functionally equivalent to a local EIT) of approximately 3.75% for residents and 3.44%for non-residents who work in the city. For a Philadelphia resident, this means the effective local-plus-state income tax rate on wages is roughly 6.82% (3.07% + 3.75%) — dramatically higher than the headline 3.07% state rate alone. Similarly, Scranton levies a 3.0% resident EIT, and Pittsburgh’s combined rate (city + school district) approaches 3%. These local taxes are typically withheld directly from your paycheck by your employer, so they show up alongside the state withholding.

In addition to state income tax and local EIT, Pennsylvania employees are also subject to a State Unemployment Insurance (SUI) contribution of 0.07% on wages, withheld directly from each paycheck. Though small, it is a mandatory deduction that applies to virtually all W-2 employees in the state.

Pennsylvania also has a relatively limited set of deductions and credits compared to other states. There is no standard deduction at the state level. Instead, taxpayers can claim a personal exemption and certain itemized deductions, but these are more restricted than the federal equivalents. The state does offer a Tax Forgiveness program (also called the “Tax Back” program) for very low-income households, which can eliminate state tax liability entirely for eligible filers.

Under Act 32 of 2005, Pennsylvania consolidated the collection of local Earned Income Tax into county-wide tax collection districts. This law standardized how local EIT is withheld and remitted, requiring employers to use aPolitical Subdivision (PSD) codeto identify the correct municipality for each employee’s withholding.

To find your local EIT rate, start by locating your PSD code. The Pennsylvania Department of Community and Economic Development (DCED) maintains asearchable PSD code directoryon its website where you can enter your home address and retrieve both your PSD code and the corresponding local tax rate. Alternatively, check your pay stub — your employer is required to print your PSD code on your wage statement.

Once you have your rate, enter it in the Local EIT Rate input field above to get an accurate take-home pay calculation tailored to your municipality. The table below shows common rates across Pennsylvania for reference.