Pennsylvania has a flat 3.07% state income tax rate, making it one of the lower-tax states on the East Coast. Our free Pennsylvania paycheck calculator shows your exact take-home pay after federal taxes, PA state tax, and FICA deductions. Whether you're considering a move to the Keystone State, comparing job offers, or budgeting your current Pennsylvania salary, get accurate results based on 2025 tax rates.
Pennsylvania Tax System Overview
Pennsylvania uses a flat income tax system with several unique features:
- Flat State Tax Rate: 3.07% on all income levels
- No Standard Deduction: PA taxes gross income with limited deductions
- Retirement Income Exempt: Most retirement income is not taxed
- Local Taxes: Many municipalities have additional local income taxes
- Earned Income Tax Credit: PA provides a state EITC for low-income workers
Sample Pennsylvania Paycheck Calculations
Here's how much you'll take home at different salary levels in Pennsylvania:
$50,000 Annual Salary
- Gross Pay: $50,000
- Federal Tax: $4,617
- PA State Tax: $1,535
- FICA Taxes: $3,825
- Take-Home Pay: $40,023 (80.0%)
- Monthly Net: $3,335
- Bi-weekly Net: $1,540
$75,000 Annual Salary
- Gross Pay: $75,000
- Federal Tax: $8,739
- PA State Tax: $2,303
- FICA Taxes: $5,738
- Take-Home Pay: $58,220 (77.6%)
- Monthly Net: $4,852
- Bi-weekly Net: $2,239
$100,000 Annual Salary
- Gross Pay: $100,000
- Federal Tax: $14,260
- PA State Tax: $3,070
- FICA Taxes: $7,650
- Take-Home Pay: $75,020 (75.0%)
- Monthly Net: $6,252
- Bi-weekly Net: $2,885
Pennsylvania vs. Neighboring States
Compare Pennsylvania's tax burden with surrounding states:
Pennsylvania ($75k salary)
- Take-home: $58,220
- Effective rate: 22.4%
- State tax: $2,303
- Moderate tax burden
New Jersey ($75k salary)
- Take-home: $55,987
- Effective rate: 25.4%
- State tax: $4,536
- PA Saves: $2,233/year
Understanding Pennsylvania Paycheck Deductions
Pennsylvania State Income Tax
Pennsylvania's flat 3.07% tax has several unique characteristics:
- Flat Rate: 3.07% on almost all income
- No Standard Deduction: Unlike most states, PA doesn't provide a standard deduction
- Limited Exemptions: Only basic personal exemptions available
- Retirement Income Exempt: Distributions from 401(k), IRA, pensions generally not taxed
Local Income Taxes in Pennsylvania
Many Pennsylvania municipalities impose local income taxes:
- Philadelphia: 3.88% city wage tax for residents
- Pittsburgh: 3.0% city tax for residents
- School District Tax: Many school districts impose 0.5-1.0% taxes
- Municipal Tax: Local municipalities may add 0.5-2.0%
Note: Our calculator shows state taxes only. Local taxes can significantly increase your total burden.
Pennsylvania Retirement Tax Benefits
Pennsylvania is very retirement-friendly:
- 401(k) & IRA Withdrawals: Not subject to PA income tax
- Pension Income: Generally exempt from state tax
- Social Security: Not taxed by Pennsylvania
- Military Retirement: Completely exempt from PA taxes
Frequently Asked Questions
Does Pennsylvania tax retirement income?
No, Pennsylvania does not tax most retirement income including 401(k) withdrawals, IRA distributions, pensions, or Social Security benefits, making it very retirement-friendly.
How much are local taxes in Pennsylvania?
Local taxes vary widely by location. Philadelphia residents pay 3.88% city tax, while rural areas may have no local income tax. Always check your specific municipality's rates.
Does PA have a standard deduction like federal taxes?
No, Pennsylvania does not provide a standard deduction. The state taxes your gross income with only limited personal exemptions available.
Tax Planning Tips for Pennsylvania Residents
Plan for Local Taxes
Research local tax rates when choosing where to live or work in PA, as they can add significantly to your tax burden.
Maximize Retirement Savings
Since PA doesn't tax retirement income, contributing to 401(k)s and IRAs provides immediate tax savings plus tax-free growth.
Consider Retirement Location
Pennsylvania's exemption of retirement income makes it attractive for retirees, especially those from higher-tax states.
Ready to Calculate Your Pennsylvania Take-Home Pay?
Use our calculator above to see exactly how much you'll keep from your paycheck in Pennsylvania.