What is Pennsylvania's state income tax rate in 2026?

Pennsylvania levies a flat state personal income tax rate of 3.07% on all taxable earned income. Unlike the federal tax system, PA does not provide a standard deduction or personal exemption.

What is the Philadelphia Wage Tax rate in 2026?

Philadelphia residents pay a municipal wage tax of 3.75% on all salaries and wages. Non-residents working within Philadelphia city limits pay 3.44%.

What is the PA Unemployment Compensation (UC) employee tax?

Pennsylvania employees contribute 0.07% of their total gross wages to the state Unemployment Compensation fund, deducted automatically by employers on each paycheck.

Flat 3.07% State Tax • Philadelphia Local Tax Support

Pennsylvania Paycheck Calculator 2026

Calculate exact take-home pay in Philadelphia, Pittsburgh, and PA with the nation's lowest flat state tax (3.07%), local wage taxes, and 2026 IRS withholding.

Compensation & Withholding Parameters

2026 RULES

Gross Pay Amount ($)

Pay Frequency

Filing Status

PA Local Wage Tax (Earned Income Tax)

401(k) / Pre-Tax Retirement (%)

Health Ins. / Pre-Tax ($/mo)

Pennsylvania Net Take-Home Pay Tax Year 2026

$0.00

Per Paycheck Estimated Net Pay

Annual Net Salary

$0.00

Effective Net Rate

0.0% of Gross

Withholding & Tax Deductions Breakdown ANNUAL

Federal Income Tax (IRS 2026) -$0.00

Social Security (6.2%) -$0.00

Medicare (1.45%) -$0.00

PA State Income Tax (3.07% Flat) -$0.00

Local Wage / EIT Tax -$0.00

PA Unemployment Compensation (UC 0.07%) -$0.00

Pre-Tax Benefits (401k & Health) -$0.00

Pennsylvania Flat Tax Peculiarity

Unlike the federal IRS and most states, Pennsylvania does not grant standard deductions or personal exemptions. PA levies its flat 3.07% on gross compensation directly, but 401(k) contributions are generally exempt from federal tax though taxable for PA state income tax.

Understanding Pennsylvania Payroll Taxes in 2026

1. Pennsylvania State Tax (3.07%)

Pennsylvania maintains the lowest flat personal income tax rate in the nation at 3.07%. Whether you earn $30,000 or $3,000,000, your base state rate remains constant.

2. Philadelphia Wage Tax (3.75%)

If you live or work in Philadelphia, the municipal wage tax represents one of the largest local income taxes in the United States. Residents pay 3.75%, while non-residents working in the city pay 3.44%.

3. PA vs. New Jersey Comparison

Due to the PA/NJ Reciprocal Tax Agreement, residents living in PA and commuting to NJ only pay PA's 3.07% tax instead of NJ's progressive rates (which climb up to 10.75%), saving thousands annually for middle- and high-income earners.

4. State Unemployment Compensation (UC)

Pennsylvania is one of very few states that taxes employees directly for state unemployment insurance. The employee withholding rate is 0.07% on total gross compensation.