Pennsylvania Paycheck Calculator
Pennsylvania looks cheap at 3.07% — the lowest flat rate of any flat-tax state — but the full picture includes your municipality's earned income tax and a rule most people learn the hard way: 401(k) contributions do not reduce Pennsylvania wages.
On this page
The lowest flat rate, with two asterisks
Pennsylvania's 3.07% has not moved since 2004, and it applies with no standard deduction and no personal exemptions — the arithmetic is wages times rate, from the first dollar. That is asterisk one: a low rate on a broad base. Asterisk two is local: nearly every Pennsylvania municipality levies an earned income tax on residents, typically 1%, and Philadelphia's wage tax runs about 3.75% — more than the state tax itself. This calculator asks for your local rate because pretending it does not exist would misstate a Pennsylvania paycheck by a quarter or more.
The 401(k) rule
Pennsylvania is the only large state that does not let elective 401(k) or 403(b) deferrals reduce state taxable wages. Contribute $10,000 and your federal wages drop by $10,000, but your Pennsylvania wages do not — the state collects its 3.07% now. The compensation: qualified retirement distributions after retirement age are entirely exempt, so Pennsylvania taxes that money exactly once, on the way in. Section 125 health premiums, by contrast, do reduce PA wages. Enter your contributions above and the results show the state and federal sides diverging, with a note explaining why.
Worked examples
| Annual salary | PA tax (3.07%) | Local EIT (1%) | Federal income tax | Social Security & Medicare | Take-home per biweekly check | Annual take-home |
|---|---|---|---|---|---|---|
| $50,000 | $1,535 | $500 | $3,820 | $3,825 | $1,550.77 | $40,320 |
| $75,000 | $2,303 | $750 | $7,670 | $5,738 | $2,251.54 | $58,540 |
| $100,000 | $3,070 | $1,000 | $13,170 | $7,650 | $2,888.85 | $75,110 |
Single filer, paid biweekly, no pre-tax deductions or dependents entered. Generated by the same calculation engine as the calculator above; Philadelphia residents should substitute their ~3.75% wage tax in the calculator above.
Finding your local rate
Local earned income tax is collected through payroll under Act 32, using the higher of your home and workplace rates (Philadelphia sits outside Act 32 with its own wage tax). The DCED's municipal tax lookup gives the exact figure for your address; 1% is the most common answer, with school districts pushing some totals to 1.5%–2%. A $10 or so per-paycheck Local Services Tax may also appear on your stub — a flat levy this calculator leaves out, and says so.
Official sources
Every figure in this calculator traces to one of these publications; nothing is estimated from third-party summaries.
- Pennsylvania Department of Revenue — Tax Rates — the 3.07% personal income tax rate in force for 2026.
- PA DCED municipal tax lookup — the earned income tax rate for your municipality and school district.
- IRS Rev. Proc. 2025-32 — the 2026 federal brackets and standard deduction behind the federal line.
Last reviewed: July 30, 2026.
Frequently asked questions
Why did my Pennsylvania tax not go down when I raised my 401(k) contribution?
Because Pennsylvania does not recognize elective deferrals. Your federal withholding fell; your PA wages stayed put, and the state took 3.07% of the full amount. The trade comes at the other end — Pennsylvania will not tax those dollars again when you withdraw them in retirement.
Which local rate do I enter — where I live or where I work?
Under Act 32 your employer withholds the higher of the two, and the money ultimately follows your residence. If you live and work in ordinary municipalities, 1% is the usual answer. Philadelphia is its own system: residents owe its wage tax (~3.75%) wherever they work, and non-residents working in the city owe the non-resident rate.
Does Pennsylvania have no deductions at all?
Almost. No standard deduction, no personal or dependent exemptions, and very few subtractions — the notable ones are Section 125 health premiums and PA 529 contributions. Tax forgiveness (PA Schedule SP) can eliminate tax for lower-income households at filing time, but it is not a paycheck-level item.
Is the flat 3.07% really cheaper than a graduated state?
At low incomes, often not — a graduated state with a big standard deduction taxes the first dollars at 0%, while Pennsylvania taxes dollar one at 3.07% plus local. At high incomes Pennsylvania wins comfortably against neighbors like New York or New Jersey. The crossover is why the worked examples above are worth reading against the other state pages.
Related calculators
This calculator is provided for general educational and estimation purposes only. It does not constitute tax, legal, accounting, or financial advice. This is an estimated take-home pay calculation: your employer's actual withholding may differ based on your federal and state withholding forms, payroll timing, local taxes, benefits and employer payroll settings. Review official IRS and state guidance or consult a qualified tax professional before making decisions.