Pennsylvania Paycheck Calculator — 3.07% Flat State Tax, Local EIT, LST, Philly Tax 3.74%
Important: Pennsylvania has a flat state income tax of 3.07% (lowest flat rate in the US). No standard deduction. Pennsylvania has three unique local taxes: EIT (Earned Income Tax) from 0.312% to 3.75%, LST (Local Services Tax) of $10, $52, or $156 per year depending on your city, and Philadelphia Wage Tax of 3.74% for residents and 3.43% for non-residents. Pennsylvania has reciprocity agreements with Indiana, Maryland, New Jersey, Ohio, Virginia, and West Virginia. Minimum wage is $7.25 per hour. Overtime is 1.5x after 40 hours per week. Updated for 2026.
Calculate your exact take-home pay in Pennsylvania with 3.07% flat state income tax, local EIT (0.312%-3.75%), LST ($10/$52/$156), and Philadelphia wage tax (3.74%/3.43%). No signup. Instant results. Free forever.
- 3.07% Flat State Tax
- Local EIT 0.312%-3.75%
- LST $10-$156
- Philly Tax 3.74%/3.43%
- $7.25 Min Wage
- 2026 Tax Brackets
- Free & No Signup
Pennsylvania Paycheck Calculator 2026
Flat 3.07% state tax · Philadelphia wage tax · LST · PA SUI · No standard deduction
✅ Pennsylvania 2026
Pennsylvania: Flat 3.07% state income tax on ALL gross income — no standard deduction, no personal exemptions.
Local EIT, LST ($10/$52/$156/yr), and Philadelphia wage tax (3.74% resident / 3.43% non-resident) apply by city.
PA SUI: 0.07% on first $10,000. Minimum wage $7.25/hr. Overtime 1.5x after 40 hrs.
Reciprocity with Indiana, Maryland, New Jersey, Ohio, Virginia, West Virginia.
📋 Pay Information
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🏙️ Select your city to apply correct local taxes.
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💰 Your Results
Take-Home Pay
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PAYCHECK BREAKDOWN
Gross PayBefore deductions
100%
$0.00
Federal Income Tax2026 brackets
0%
$0.00
PA State Income TaxFlat 3.07% — no deductions
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Local EIT / Philadelphia TaxSelect city above
0%
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LST (Local Services Tax)$52/year standard
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PA SUI0.07% on first $10,000
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Social Security6.2% up to $184,500
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Medicare1.45% (+0.9% over $200k single)
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Pre-tax Deductions401k / Health / HSA+FSA
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Net Take-Home PayPer paycheck
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🔔 Pennsylvania Facts 2026
📊 Flat 3.07% state tax on ALL gross income — no standard deduction, no exemptions
🏙️ Philadelphia wage tax: 3.74% residents / 3.43% non-residents — most competitors miss this!
💼 LST (Local Services Tax): $10, $52, or $156/year flat — collected by employer
📉 PA SUI: 0.07% on first $10,000 wages (employee contribution)
💰 Minimum wage: $7.25 per hour (federal minimum)
⏱️ Overtime: 1.5x after 40 hours per week
🤝 Reciprocal Agreement Note
If you live in Indiana, Maryland, New Jersey, Ohio, Virginia, or West Virginia and work in Pennsylvania, you pay tax to your HOME state — not Pennsylvania. Ask your employer for a PA exemption certificate.
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Pennsylvania Tax Information — 3.07% Flat Rate, No Standard Deduction
Pennsylvania has one of the simplest state income tax systems in the United States. Here is everything you need to know about how Pennsylvania taxes your paycheck.
Flat 3.07% State Income Tax
Pennsylvania charges a flat state income tax rate of 3.07 percent. This is the lowest flat tax rate among all states that have a flat income tax system. Unlike progressive states like California where higher incomes are taxed at higher rates, Pennsylvania charges the same 3.07 percent whether you earn $30,000 or $300,000 per year.
For example, if you earn $50,000 per year, your Pennsylvania state tax is $50,000 times 0.0307 equals $1,535 per year. If you earn $100,000 per year, your Pennsylvania state tax is $100,000 times 0.0307 equals $3,070 per year. If you earn $200,000 per year, your Pennsylvania state tax is $200,000 times 0.0307 equals $6,140 per year.
No Standard Deduction — Important Difference from Federal Tax
Unlike federal taxes where you can deduct $15,000 (single) or $30,000 (married) before calculating your tax, Pennsylvania has no standard deduction. Your entire gross income is subject to the 3.07 percent state tax. There are also no personal exemptions in Pennsylvania.
This means your Pennsylvania taxable income is the same as your gross income. If you earn $60,000 per year, you pay Pennsylvania state tax on the full $60,000. You do not get to subtract anything before calculating your state tax.
No Personal Exemptions
Pennsylvania does not offer personal exemptions for yourself, your spouse, or your dependents. Every dollar you earn is taxed at 3.07 percent regardless of your family size. This is different from many other states where having children reduces your state tax bill.
Local EIT Earned Income Tax — Most Cities
In addition to the state 3.07 percent tax, most Pennsylvania cities charge a local Earned Income Tax or EIT. The EIT rate typically ranges from 0.312 percent to 3.75 percent depending on where you live and work.
The EIT applies to earned income including wages, salaries, bonuses, commissions, and self-employment income. It does not apply to interest, dividends, or retirement income. You pay EIT to the city where you live, not where you work. If your employer is in a different city, your employer may withhold EIT for your home city.
LST Local Services Tax — Fixed Dollar Amount
Many Pennsylvania cities also charge a Local Services Tax or LST. Unlike the EIT which is a percentage of your income, the LST is a fixed dollar amount per year. The amount is typically $10, $52, or $156 per year depending on your city and your income level.
Low-wage workers earning less than $12,000 per year are generally exempt from the LST or pay only the $10 rate. Most workers pay $52 per year. Workers in Philadelphia and some other cities pay $156 per year. Your employer collects this tax by dividing the annual amount by the number of pay periods and deducting a small amount from each paycheck.
Philadelphia Wage Tax — Special Case
Philadelphia does not follow the standard EIT and LST system. Instead, Philadelphia has its own Wage Tax that applies to anyone who works in Philadelphia, whether they live in the city or commute from the suburbs.
Philadelphia residents pay a Wage Tax of 3.74 percent. Non-residents who work in Philadelphia pay a Wage Tax of 3.43 percent. This tax applies to all earned income including wages, salaries, bonuses, and commissions. Unlike the EIT which is based on where you live, the Philadelphia Wage Tax is based on where you work.
Pittsburgh Taxes
Pittsburgh has its own local tax structure. Pittsburgh charges an EIT of approximately 3 percent for residents. Pittsburgh also charges an LST of $52 per year for most workers. Some workers near Pittsburgh may pay different rates depending on their specific municipality.
PA SUI State Unemployment Insurance — Employee Contribution
Pennsylvania is one of only a few states where employees contribute to State Unemployment Insurance. The PA SUI rate for employees is 0.07 percent on the first $10,000 of wages. Once you earn more than $10,000 in a calendar year, the SUI tax stops for the rest of the year.
On a $50,000 salary, you pay PA SUI tax on only the first $10,000. Your annual SUI tax is $10,000 times 0.0007 equals $7 per year. On a $100,000 salary, you also pay only $7 per year because the tax stops at $10,000.
Reciprocal Agreements with Six States
Pennsylvania has reciprocity agreements with Indiana, Maryland, New Jersey, Ohio, Virginia, and West Virginia. If you live in one of these states and work in Pennsylvania, you pay state income tax only to your home state, not to Pennsylvania. If you live in Pennsylvania and work in one of these states, you pay state income tax only to Pennsylvania.
For example, if you live in New Jersey and work in Philadelphia, you pay New Jersey state tax, not Pennsylvania state tax. However, you still pay the Philadelphia Wage Tax of 3.43 percent because that is a local tax, not a state tax.
Minimum Wage and Overtime
The minimum wage in Pennsylvania for 2026 is $7.25 per hour, which follows the federal minimum wage rate. Overtime pay is one and a half times your regular rate for all hours worked over 40 hours per week. For example, if you earn $15 per hour, your overtime rate is $22.50 per hour.
No Tax on Social Security or Retirement Income
Pennsylvania does not tax Social Security benefits. Pennsylvania also does not tax retirement income including 401k withdrawals, IRA withdrawals, pension income, and annuity payments. This makes Pennsylvania attractive for retirees who want to keep more of their retirement savings.
Quick Summary of Pennsylvania Taxes
Here is a quick summary of all taxes that may affect your Pennsylvania paycheck.
State Income Tax: 3.07 percent flat on all gross income. No standard deduction. No personal exemptions.
Local EIT: 0.312 percent to 3.75 percent depending on your city. Based on where you live.
LST: $10, $52, or $156 per year depending on your city and income level. Fixed dollar amount.
Philadelphia Wage Tax: 3.74 percent for residents, 3.43 percent for non-residents. Based on where you work.
PA SUI: 0.07 percent on the first $10,000 of wages. Employee paid.
Social Security: 6.2 percent on the first $184,500 of wages.
Medicare: 1.45 percent on all wages. Additional 0.9 percent for high earners over $200,000.
Sales Tax: Pennsylvania has a state sales tax of 6 percent. Local taxes can add up to 2 percent, making the total sales tax up to 8 percent in some areas. Sales tax does not affect your paycheck.
Property Tax: Property taxes vary by county and school district. Property tax does not affect your paycheck.
Use Our Calculator to See Your Exact Pennsylvania Take-Home Pay
Our calculator above includes the Pennsylvania 3.07 percent flat state tax, local EIT based on your city, LST based on your city and income level, Philadelphia Wage Tax for workers in Philadelphia, PA SUI of 0.07 percent, federal income tax, Social Security, and Medicare. Enter your salary, select your city, and see your exact take-home pay instantly. No buttons. No waiting. No signup.
Local EIT Earned Income Tax — Complete Guide by City
In addition to Pennsylvania’s 3.07 percent flat state income tax, most Pennsylvania cities charge a local Earned Income Tax or EIT. Understanding your local EIT rate is essential for calculating your accurate take-home pay.
What is EIT?
EIT stands for Earned Income Tax. It is a local tax on wages, salaries, bonuses, commissions, and self-employment income. EIT does not apply to interest, dividends, capital gains, or retirement income including Social Security, 401k withdrawals, IRA withdrawals, or pension income.
The EIT rate varies by city. Most cities charge between 0.312 percent and 3.75 percent. You pay EIT to the city where you live, not where you work. If you live in one city and work in another, your employer will withhold EIT for your home city.
How EIT is Collected
Your employer is responsible for withholding EIT from your paycheck. They use your home address to determine the correct EIT rate. If you move to a different city, update your address with your employer so they withhold the correct amount.
If your employer does not withhold EIT for your home city, you may need to make quarterly estimated payments directly to your local tax collector. Most cities in Pennsylvania use third-party collectors like Berkheimer, Jordan Tax Service, or Keystone Collections Group.
Major Cities EIT Rates
Here are the EIT rates for major cities in Pennsylvania.
Philadelphia has a special system. Philadelphia does not use the standard EIT. Instead, Philadelphia charges a Wage Tax of 3.74 percent for residents and 3.43 percent for non-residents who work in Philadelphia. This is covered in detail in the Philadelphia section below.
Pittsburgh charges an EIT of approximately 3.00 percent for residents. Pittsburgh also charges an LST of $52 per year. If you live in Pittsburgh, your combined local tax burden is approximately 3.00 percent plus $52 per year.
Harrisburg, the state capital, charges an EIT of 2.00 percent. Residents of Harrisburg pay 2.00 percent on all earned income. The LST in Harrisburg is $52 per year for most workers.
Allentown, the third largest city in Pennsylvania, charges an EIT of 1.50 percent. The LST in Allentown is $52 per year for most workers.
Erie, located on Lake Erie, charges an EIT of 1.65 percent. The LST in Erie is $52 per year for most workers. Low-wage earners may pay a reduced LST rate.
Scranton, known for The Office TV show, charges an EIT of 3.40 percent. The LST in Scranton is $52 per year for most workers.
Reading charges an EIT of 3.60 percent. The LST in Reading is $52 per year for most workers.
Bethlehem charges an EIT of 1.00 percent. The LST in Bethlehem is $52 per year for most workers.
Lancaster charges an EIT of 1.10 percent. The LST in Lancaster is $52 per year for most workers.
York charges an EIT of 1.25 percent. The LST in York is $52 per year for most workers.
Other Cities EIT Rates
Here are EIT rates for other Pennsylvania cities. Many smaller cities have EIT rates between 0.5 percent and 1.5 percent.
Altoona has an EIT of 1.20 percent. State College has an EIT of 0.50 percent. Wilkes-Barre has an EIT of 3.00 percent. Williamsport has an EIT of 1.10 percent. Easton has an EIT of 1.00 percent. Chester has an EIT of 2.50 percent. New Castle has an EIT of 1.50 percent. Butler has an EIT of 1.00 percent. Johnstown has an EIT of 1.50 percent. Chambersburg has an EIT of 0.50 percent.
If your city is not listed, check with your local tax collector or your employer. Most cities in Pennsylvania have an EIT rate between 0.5 percent and 2.0 percent. The default rate for cities without a specific EIT is typically 1.00 percent.
How EIT Affects Your Monthly Take-Home Pay
The EIT rate directly reduces your take-home pay. On a $60,000 salary, a 1 percent EIT costs you $600 per year or $50 per month. A 2 percent EIT costs you $1,200 per year or $100 per month. A 3 percent EIT costs you $1,800 per year or $150 per month.
For example, if you earn $60,000 per year and live in Harrisburg with a 2.00 percent EIT, your annual EIT is $1,200. Your monthly take-home pay is reduced by $100 compared to someone living in a city with no EIT.
EIT vs Philadelphia Wage Tax
Philadelphia is different from all other Pennsylvania cities. Instead of an EIT, Philadelphia charges a Wage Tax. The Philadelphia Wage Tax is 3.74 percent for residents and 3.43 percent for non-residents who work in Philadelphia.
Unlike the EIT which is based on where you live, the Philadelphia Wage Tax is based on where you work. If you live in the suburbs but work in Philadelphia, you pay the non-resident rate of 3.43 percent. Your home city may also charge an EIT, but most suburbs offer a credit for taxes paid to Philadelphia.
If you live in Philadelphia and work in Philadelphia, you pay the resident rate of 3.74 percent. You do not pay any additional EIT because Philadelphia has no EIT.
EIT Exemptions and Special Rules
Some types of income are exempt from EIT. Retirement income including Social Security, 401k withdrawals, IRA withdrawals, and pension income are not subject to EIT. Interest, dividends, and capital gains are also exempt.
Active duty military pay is exempt from EIT for Pennsylvania residents stationed outside Pennsylvania. Some cities offer senior citizen exemptions or low-income exemptions. Check with your local tax collector for details.
If you are a low-wage earner, you may be exempt from the LST but not from the EIT. The LST exemption is typically for workers earning less than $12,000 per year. The EIT applies regardless of income level.
How to Find Your Exact EIT Rate
The best way to find your exact EIT rate is to check your pay stub. Your employer should list the EIT deduction with the rate and the tax collector name. If it is not on your pay stub, ask your payroll department.
You can also search online for your city name plus “earned income tax rate”. Most cities publish their current EIT rates on their official websites. The Pennsylvania Department of Community and Economic Development also maintains a list of local tax rates.
Use our calculator above to include EIT in your take-home pay calculation. Select your city from the dropdown menu or enter your EIT rate manually. The calculator will automatically apply the correct rate to your salary and show your net pay after state tax, EIT, LST, federal tax, and FICA.
Real Example — EIT Impact on $60,000 Salary
Let us compare two workers earning the same $60,000 salary in different Pennsylvania cities.
Worker A lives in a city with no EIT (rare, but some townships have no EIT). Worker A pays $0 in local EIT per year. Worker A’s monthly take-home pay is approximately $3,800 after all taxes.
Worker B lives in Harrisburg with a 2.00 percent EIT. Worker B pays $1,200 per year in EIT. Worker B’s monthly take-home pay is approximately $3,700 after all taxes. The difference is $100 per month simply because of where they live.
Worker C lives in Scranton with a 3.40 percent EIT. Worker C pays $2,040 per year in EIT. Worker C’s monthly take-home pay is approximately $3,630 after all taxes. The difference between Scranton and a no-EIT city is $170 per month.
Choosing where to live in Pennsylvania can save you hundreds or even thousands of dollars per year in local taxes. Make sure you understand your city’s EIT rate before signing a lease or buying a home.
Use Our Calculator to See Your Exact Take-Home Pay
Our calculator above includes EIT rates for all major Pennsylvania cities. Select your city from the dropdown menu. The calculator will automatically apply the correct EIT rate to your salary. You will see your exact take-home pay after state tax, EIT, LST, federal tax, Social Security, and Medicare. The calculator updates instantly with every change. No buttons. No waiting. No signup.
LST Local Services Tax — Complete Guide 10 , 10,52, or $156 per year
The Local Services Tax or LST is a unique Pennsylvania tax that many workers do not know about until they see it on their pay stub. Unlike other taxes that are a percentage of your income, the LST is a fixed dollar amount per year. Understanding the LST helps you know exactly why a small amount is deducted from each paycheck.
What is LST?
LST stands for Local Services Tax. It is a flat dollar tax collected by many Pennsylvania cities, boroughs, and townships. The tax funds police, fire, ambulance, road maintenance, and other local services. Unlike the EIT which is a percentage of your income, the LST is the same dollar amount for most workers in a given city.
The LST amount depends on where you live or work. Most cities charge $52 per year. Some cities charge $156 per year. Low-wage workers earning less than $12,000 per year pay only $10 per year or are completely exempt.
How Much is the LST?
The LST has three tiers based on your annual income and your city.
The $10 tier applies to low-wage earners. If you earn less than $12,000 per year, you pay only $10 per year. Some cities exempt low-wage earners entirely, meaning you pay $0. If you are a part-time worker, student, or retiree with low earned income, you should pay the $10 rate.
The $52 tier applies to most workers. If you earn between $12,000 and $100,000 per year in most cities, you pay $52 per year. This is the standard rate for the majority of Pennsylvania workers. Cities including Pittsburgh, Harrisburg, Allentown, Erie, Scranton, Reading, Bethlehem, Lancaster, and York charge $52 per year for most workers.
The $156 tier applies to workers in Philadelphia and some other high-cost cities. If you work in Philadelphia, you pay $156 per year regardless of your income level. Some other cities near Philadelphia also charge $156 per year. This is the highest LST rate in Pennsylvania.
How is LST Deducted from Your Paycheck?
Your employer divides the annual LST amount by the number of pay periods in a year and deducts that amount from each paycheck.
If you are paid weekly and pay $52 per year, your employer deducts $1 per week. If you are paid biweekly, your employer deducts $2 per paycheck. If you are paid monthly, your employer deducts approximately $4.33 per month.
If you are paid weekly and pay $156 per year in Philadelphia, your employer deducts $3 per week. If you are paid biweekly, your employer deducts $6 per paycheck. If you are paid monthly, your employer deducts approximately $13 per month.
If you are a low-wage earner paying $10 per year, your employer deducts approximately $0.19 per week or $0.38 per biweekly paycheck.
Who Pays the LST?
You pay LST to the city where you work, not where you live. If you live in the suburbs but work in Philadelphia, you pay the Philadelphia LST of $156 per year. Your home city may also have an LST, but you only pay LST to your work location.
If you work from home, you pay LST to the city where your home office is located. If your employer is based in a different city but you work from home, pay attention to which city your employer uses for LST withholding. Some employers withhold LST based on their office location, not your home location. Check your pay stub to confirm.
If you have multiple jobs in different cities, you may pay LST to multiple cities. However, you can request a refund from the secondary city if you pay more than the maximum allowed. The maximum LST you can pay in a year is $156 regardless of how many jobs you have.
LST Exemptions
Low-wage earners are exempt from the full LST amount. If you earn less than $12,000 per year, you should pay only $10 per year or $0 depending on your city. Some employers automatically apply this exemption. If your employer does not, you can file for an exemption with your local tax collector.
Active duty military members are exempt from LST. If you are on active duty military service, you do not pay LST regardless of your income. Provide your employer with proof of active duty status.
Some cities offer additional exemptions for senior citizens, disabled workers, or veterans. Check with your local tax collector for details.
LST by Major City
Here are the LST rates for major Pennsylvania cities.
Philadelphia charges $156 per year for all workers. This is the highest LST rate in Pennsylvania. Philadelphia also has a Wage Tax of 3.74 percent for residents and 3.43 percent for non-residents. The LST is separate from the Wage Tax.
Pittsburgh charges $52 per year for most workers. Low-wage earners pay $10 per year. Pittsburgh also has an EIT of approximately 3.00 percent for residents.
Harrisburg charges $52 per year for most workers. Low-wage earners pay $10 per year. Harrisburg has an EIT of 2.00 percent.
Allentown charges $52 per year for most workers. Low-wage earners pay $10 per year. Allentown has an EIT of 1.50 percent.
Erie charges $52 per year for most workers. Low-wage earners pay $10 per year. Erie has an EIT of 1.65 percent.
Scranton charges $52 per year for most workers. Low-wage earners pay $10 per year. Scranton has an EIT of 3.40 percent.
Reading charges $52 per year for most workers. Low-wage earners pay $10 per year. Reading has an EIT of 3.60 percent.
Bethlehem charges $52 per year for most workers. Low-wage earners pay $10 per year. Bethlehem has an EIT of 1.00 percent.
Lancaster charges $52 per year for most workers. Low-wage earners pay $10 per year. Lancaster has an EIT of 1.10 percent.
York charges $52 per year for most workers. Low-wage earners pay $10 per year. York has an EIT of 1.25 percent.
If your city is not listed, check with your employer or local tax collector. Most cities in Pennsylvania charge $52 per year for the LST.
How LST Affects Your Monthly Take-Home Pay
The LST is a small tax, but it still affects your take-home pay. On a $52 per year LST, you pay approximately $1 per week or $2 per biweekly paycheck or $4.33 per month. On a $156 per year LST in Philadelphia, you pay approximately $3 per week or $6 per biweekly paycheck or $13 per month.
While these amounts seem small, they add up over time. In a year, you pay $52 or $156 that you could have kept in your pocket. Understanding the LST helps you plan your budget accurately.
Real Example — LST Impact on Different Pay Frequencies
Let us see how the LST deduction appears on your pay stub based on your pay frequency.
If you earn $60,000 per year, live in Harrisburg (LST $52), and are paid biweekly (26 paychecks per year), you will see approximately $2 deducted from each paycheck for LST. The amount may be listed as LST, Local Services Tax, or Occupational Tax on your pay stub.
If you earn $60,000 per year, work in Philadelphia (LST $156), and are paid weekly (52 paychecks per year), you will see approximately $3 deducted from each paycheck for LST.
If you earn $10,000 per year (part-time), you qualify for the low-wage exemption. You should pay only $10 per year or $0. Your employer should deduct approximately $0.38 per biweekly paycheck or nothing at all.
What If Your Employer Withholds the Wrong LST Amount
Employers sometimes withhold the wrong LST amount. Common mistakes include withholding the $52 rate for low-wage earners who should pay $10, withholding the $156 rate for workers outside Philadelphia, or withholding LST from workers who are exempt (active duty military).
If your employer withholds the wrong amount, first ask your payroll department to correct future deductions. They can adjust your withholding by updating your LST status in their payroll system.
If you overpaid LST in a previous year, you can file for a refund with your local tax collector. You will need to provide pay stubs showing the overpayment and proof of your income or exemption status.
LST vs EIT — What is the Difference?
Many workers confuse LST with EIT. Here is the difference.
EIT or Earned Income Tax is a percentage of your income. Most cities charge between 0.312 percent and 3.75 percent. If you earn $60,000 in a city with a 1 percent EIT, you pay $600 per year in EIT.
LST or Local Services Tax is a fixed dollar amount. Most cities charge $52 per year regardless of your income (except low-wage earners). If you earn $60,000 in a city with $52 LST, you pay $52 per year regardless of your income.
The EIT is usually much larger than the LST. On a $60,000 salary with a 1 percent EIT, you pay $600 per year in EIT plus $52 per year in LST for a total of $652 per year in local taxes. On the same salary with a 2 percent EIT, you pay $1,200 per year in EIT plus $52 per year in LST for a total of $1,252 per year in local taxes.
How to Find Your LST Rate
The best way to find your LST rate is to check your pay stub. Your employer should list the LST deduction with the amount. If it is not on your pay stub, ask your payroll department.
You can also search online for your city name plus “Local Services Tax rate”. Most cities publish their current LST rates on their official websites. The Pennsylvania Department of Community and Economic Development also maintains a list of local tax rates.
Use Our Calculator to Include LST in Your Take-Home Pay
Our calculator above includes LST for all major Pennsylvania cities. Select your city from the dropdown menu. If you work in Philadelphia, select Philadelphia to apply the $156 LST rate. If you work in any other major city, the calculator will apply the $52 LST rate. If you are a low-wage earner, select the low-wage option to apply the $10 LST rate.
The calculator will automatically deduct the correct LST amount from your paycheck along with state tax, local EIT, federal tax, Social Security, and Medicare. You will see your exact take-home pay after all deductions. The calculator updates instantly with every change. No buttons. No waiting. No signup.
Philadelphia Wage Tax — Complete Guide 3.74% Residents, 3.43% Non-Residents
Philadelphia is unique among Pennsylvania cities. Instead of the standard EIT (Earned Income Tax) and LST (Local Services Tax) system used by most of the state, Philadelphia has its own Wage Tax. If you live or work in Philadelphia, you need to understand how this tax affects your paycheck.
What is the Philadelphia Wage Tax?
The Philadelphia Wage Tax is a local income tax on earned income for anyone who works in the city of Philadelphia. Unlike the EIT which is based on where you live, the Philadelphia Wage Tax is based on where you work. If you work in Philadelphia, you pay this tax regardless of where you live.
The tax applies to all earned income including wages, salaries, bonuses, commissions, tips, and self-employment income earned within Philadelphia. It does not apply to interest, dividends, capital gains, or retirement income including Social Security, 401k withdrawals, IRA withdrawals, or pension income.
Philadelphia Residents vs Non-Residents — Different Rates
Philadelphia has two different Wage Tax rates depending on whether you live in Philadelphia or commute from the suburbs.
Philadelphia residents pay a Wage Tax of 3.74 percent. This applies to all earned income regardless of where you work. If you live in Philadelphia but work in the suburbs, you still pay the Philadelphia resident rate because you live in the city.
Philadelphia non-residents pay a Wage Tax of 3.43 percent. This applies to anyone who does not live in Philadelphia but works in the city. If you live in Cherry Hill, New Jersey or the Pennsylvania suburbs like Ardmore, Bala Cynwyd, or King of Prussia and work in Philadelphia, you pay the non-resident rate of 3.43 percent.
The difference between the resident and non-resident rate is 0.31 percent. On a $60,000 salary, a resident pays approximately $2,244 per year while a non-resident pays approximately $2,058 per year. The resident pays about $186 more per year than the non-resident.
Why Does Philadelphia Have a Wage Tax Instead of EIT?
Philadelphia created the Wage Tax many years ago as a way to fund city services including police, fire, schools, and public transportation. Unlike other Pennsylvania cities that use a combination of EIT and LST, Philadelphia consolidated all local taxes into a single Wage Tax.
The advantage of the Wage Tax is simplicity. You pay one local tax rate instead of separate EIT and LST calculations. The disadvantage is that the rate is higher than most other Pennsylvania cities. Most Pennsylvania cities have combined local taxes (EIT plus LST) between 1.5 percent and 3.5 percent, while Philadelphia’s rate is 3.74 percent for residents and 3.43 percent for non-residents.
Who Pays the Philadelphia Wage Tax?
You pay the Philadelphia Wage Tax if you meet one of two conditions.
First, if you work in Philadelphia, you pay the Wage Tax. Your employer is required to withhold the tax regardless of where you live. Even if you live in New Jersey, Delaware, or the Pennsylvania suburbs, you pay the non-resident rate of 3.43 percent on the wages you earn while working in Philadelphia.
Second, if you live in Philadelphia, you pay the resident rate of 3.74 percent on all your earned income, even if you work outside the city. If you live in Philadelphia but work in King of Prussia or Cherry Hill, your employer should still withhold the Philadelphia resident rate.
If you both live and work in Philadelphia, you pay the resident rate of 3.74 percent on your entire income. You do not pay any additional local taxes because the Wage Tax replaces EIT and LST in Philadelphia.
How the Philadelphia Wage Tax is Deducted from Your Paycheck
Your employer is responsible for withholding the Philadelphia Wage Tax from your paycheck. The amount deducted depends on your pay frequency and your residency status.
If you are a Philadelphia resident earning $60,000 per year and paid biweekly, your annual Wage Tax is $60,000 times 0.0374 equals $2,244 per year. Divided by 26 paychecks, approximately $86.31 is deducted from each paycheck for the Wage Tax.
If you are a non-resident earning $60,000 per year working in Philadelphia and paid biweekly, your annual Wage Tax is $60,000 times 0.0343 equals $2,058 per year. Divided by 26 paychecks, approximately $79.15 is deducted from each paycheck for the Wage Tax.
If you are paid weekly, the deduction is approximately $43.15 per week for residents or $39.58 per week for non-residents on a $60,000 salary.
Philadelphia Wage Tax vs EIT — What is the Difference?
Many workers moving to Philadelphia from other parts of Pennsylvania ask about the difference between Wage Tax and EIT.
EIT or Earned Income Tax is a percentage of your income that most Pennsylvania cities charge. The EIT rate typically ranges from 0.312 percent to 3.75 percent. EIT is based on where you live, not where you work. You also pay LST (Local Services Tax) as a fixed dollar amount on top of EIT.
The Philadelphia Wage Tax replaces both EIT and LST. You pay one tax at one rate. There is no separate LST in Philadelphia. The Wage Tax rate for residents is 3.74 percent, which is slightly higher than the combined EIT plus LST in most other Pennsylvania cities.
For example, in Harrisburg, the combined local taxes are about 2.00 percent EIT plus $52 per year LST. On a $60,000 salary, that is about $1,200 plus $52 equals $1,252 per year. In Philadelphia, a resident pays 3.74 percent on $60,000 which is $2,244 per year. Philadelphia’s local tax burden is about $992 higher per year than Harrisburg on the same $60,000 salary.
Philadelphia Wage Tax and LST
Philadelphia does not have a separate LST (Local Services Tax). The Wage Tax includes funding for local services that other cities pay for with the LST. If you work in Philadelphia, you will not see a separate LST deduction on your pay stub. The Wage Tax is the only local tax deducted.
This is different from other Pennsylvania cities where you may see both an EIT deduction and an LST deduction on your pay stub. In Philadelphia, you see only the Wage Tax deduction.
Does the Philadelphia Wage Tax Apply to Remote Workers?
If you work from home in the suburbs but your employer is based in Philadelphia, the answer depends on where you physically perform your work. If you work from your home office in the suburbs and never go into Philadelphia, you do not pay the Philadelphia Wage Tax. Your employer should withhold tax for your home location instead.
If you work from home in the suburbs but occasionally go into the Philadelphia office, you pay the Wage Tax only on the days you actually work in Philadelphia. Some employers calculate this by tracking your in-office days. Other employers simply withhold the full Wage Tax regardless. Check with your payroll department.
If you live in Philadelphia but work from home in Philadelphia, you pay the full resident Wage Tax of 3.74 percent on all your income regardless of where your employer is located.
Real Example — Resident vs Non-Resident on $100,000 Salary
Let us compare two workers earning the same $100,000 salary. Both work in Philadelphia.
Worker A lives in Philadelphia (resident). Worker A pays the resident Wage Tax of 3.74 percent. Annual Wage Tax is $100,000 times 0.0374 equals $3,740 per year. Per biweekly paycheck, approximately $143.85 is deducted for Wage Tax.
Worker B lives in the suburbs (non-resident). Worker B pays the non-resident Wage Tax of 3.43 percent. Annual Wage Tax is $100,000 times 0.0343 equals $3,430 per year. Per biweekly paycheck, approximately $131.92 is deducted for Wage Tax.
Worker A pays $310 more per year in Wage Tax simply because they live in Philadelphia instead of the suburbs. On a monthly basis, Worker A pays about $26 more per month.
Real Example — Living in Philadelphia but Working Outside the City
Let us say you live in Philadelphia but work in King of Prussia. You still pay the Philadelphia resident Wage Tax of 3.74 percent on all your income. Your employer in King of Prussia should withhold the Philadelphia Wage Tax. If they do not, you may need to make estimated payments directly to the Philadelphia Department of Revenue.
Real Example — Living in New Jersey but Working in Philadelphia
Let us say you live in Cherry Hill, New Jersey but work in Philadelphia. You pay the Philadelphia non-resident Wage Tax of 3.43 percent on your wages earned in Philadelphia. You also pay New Jersey state income tax. New Jersey will give you a credit for the taxes paid to Philadelphia, so you do not pay double tax.
Philadelphia Wage Tax Refunds and Credits
If you overpaid the Philadelphia Wage Tax, you can file for a refund with the Philadelphia Department of Revenue. Common reasons for overpayment include working part of the year in Philadelphia and part outside the city, or your employer withholding the resident rate when you are actually a non-resident.
If you live in Philadelphia but your employer withheld the non-resident rate, you owe additional tax. You should file a return and pay the difference. If you live in the suburbs but your employer withheld the resident rate, you are due a refund.
If you pay Wage Tax to Philadelphia and also pay local tax to your home city in the suburbs, you may be eligible for a credit from your home city. Many suburbs offer a credit for taxes paid to Philadelphia. Check with your home city tax collector.
How to Calculate Your Philadelphia Wage Tax
The formula is simple. Multiply your gross earned income by your applicable rate. If you are a resident, multiply by 0.0374. If you are a non-resident, multiply by 0.0343.
For example, if you are a resident earning $60,000 per year, your Wage Tax is $60,000 times 0.0374 equals $2,244 per year.
If you are paid biweekly, divide your annual Wage Tax by 26. For a resident earning $60,000, $2,244 divided by 26 equals approximately $86.31 per paycheck.
If you are paid weekly, divide by 52. For a resident earning $60,000, $2,244 divided by 52 equals approximately $43.15 per week.
If you are paid monthly, divide by 12. For a resident earning $60,000, $2,244 divided by 12 equals approximately $187 per month.
Philadelphia Wage Tax Rates by Year
The Philadelphia Wage Tax rate has decreased gradually over the years. The resident rate was 3.8712 percent in 2021. It decreased to 3.8398 percent in 2022. It decreased to 3.79 percent in 2023. It decreased to 3.75 percent in 2024. For 2026, the rate is 3.74 percent for residents and 3.43 percent for non-residents.
The rates are expected to continue decreasing slowly over time as Philadelphia’s financial situation improves. Check the Philadelphia Department of Revenue website for the most current rates.
Use Our Calculator to Include Philadelphia Wage Tax
Our calculator above includes the Philadelphia Wage Tax. If you select Philadelphia as your city, the calculator will ask whether you are a resident or non-resident. Select your status, and the calculator will automatically apply the correct rate of 3.74 percent for residents or 3.43 percent for non-residents.
The calculator will also apply the Philadelphia LST rate of $156 per year, which is separate from the Wage Tax. You will see your exact take-home pay after all taxes including the Philadelphia Wage Tax, federal tax, Social Security, and Medicare. The calculator updates instantly with every change. No buttons. No waiting. No signup.
Pennsylvania Reciprocity Agreements — Complete Guide IN, MD, NJ, OH, VA, WV
Pennsylvania has reciprocity agreements with six neighboring states. These agreements simplify taxes for workers who live in one state and work in another. Understanding reciprocity helps you avoid paying double tax and ensures the correct amount is withheld from your paycheck.
What is a Reciprocity Agreement?
A reciprocity agreement is a deal between two states that allows residents of one state to work in the other state without paying income tax to the work state. You pay income tax only to your home state. Your employer withholds tax for your home state instead of the work state.
Without a reciprocity agreement, you would need to file tax returns in both states. You would pay tax to the work state first, then claim a credit on your home state return. This process is complicated and can take months to get your refund.
Pennsylvania has reciprocity agreements with Indiana, Maryland, New Jersey, Ohio, Virginia, and West Virginia. These six agreements make it easier for workers who live near state borders.
Which States Have Reciprocity with Pennsylvania?
Pennsylvania has reciprocity with these six states.
Indiana — If you live in Pennsylvania and work in Indiana, you pay Pennsylvania state income tax only. Your employer withholds Pennsylvania tax. You do not file an Indiana tax return. If you live in Indiana and work in Pennsylvania, you pay Indiana state income tax only. Your employer withholds Indiana tax.
Maryland — If you live in Pennsylvania and work in Maryland, you pay Pennsylvania state income tax only. Your employer withholds Pennsylvania tax. If you live in Maryland and work in Pennsylvania, you pay Maryland state income tax only. Your employer withholds Maryland tax.
New Jersey — If you live in Pennsylvania and work in New Jersey, you pay Pennsylvania state income tax only. Your employer withholds Pennsylvania tax. If you live in New Jersey and work in Pennsylvania, you pay New Jersey state income tax only. Your employer withholds New Jersey tax.
Ohio — If you live in Pennsylvania and work in Ohio, you pay Pennsylvania state income tax only. Your employer withholds Pennsylvania tax. If you live in Ohio and work in Pennsylvania, you pay Ohio state income tax only. Your employer withholds Ohio tax.
Virginia — If you live in Pennsylvania and work in Virginia, you pay Pennsylvania state income tax only. Your employer withholds Pennsylvania tax. If you live in Virginia and work in Pennsylvania, you pay Virginia state income tax only. Your employer withholds Virginia tax.
West Virginia — If you live in Pennsylvania and work in West Virginia, you pay Pennsylvania state income tax only. Your employer withholds Pennsylvania tax. If you live in West Virginia and work in Pennsylvania, you pay West Virginia state income tax only. Your employer withholds West Virginia tax.
How Reciprocity Works in Practice
Let us walk through an example. You live in Pennsylvania (home state) and work in New Jersey (work state). Because of the reciprocity agreement, you pay Pennsylvania state income tax only. Your employer in New Jersey withholds Pennsylvania tax from your paycheck, not New Jersey tax. You never file a New Jersey tax return.
Let us walk through another example. You live in New Jersey (home state) and work in Pennsylvania (work state). Because of the reciprocity agreement, you pay New Jersey state income tax only. Your employer in Pennsylvania withholds New Jersey tax from your paycheck, not Pennsylvania tax. You never file a Pennsylvania tax return.
What About Local Taxes? Reciprocity Does NOT Apply
Important note that many workers miss — reciprocity agreements apply only to STATE income taxes. They do NOT apply to local taxes like the Philadelphia Wage Tax, EIT, or LST.
If you live in New Jersey but work in Philadelphia, you still pay the Philadelphia non-resident Wage Tax of 3.43 percent. Your employer must withhold this tax regardless of the state reciprocity agreement. You also pay New Jersey state income tax, but New Jersey gives you a credit for taxes paid to Philadelphia.
If you live in Pennsylvania but work in New Jersey, you do not pay New Jersey state tax. However, if you work in a New Jersey city with a local tax, you may still owe that local tax. Check with your employer about local tax requirements.
What If Your State Does Not Have Reciprocity with Pennsylvania?
If you live in a state that does not have a reciprocity agreement with Pennsylvania, the standard rules apply. You pay tax to the state where you work first, then claim a credit on your home state return.
For example, if you live in New York and work in Pennsylvania, there is no reciprocity agreement. You pay Pennsylvania state income tax on your wages earned in Pennsylvania. You then claim a credit on your New York tax return for taxes paid to Pennsylvania. You file tax returns in both states.
States without reciprocity with Pennsylvania include New York, Delaware, Connecticut, and all other states not listed above.
How to Tell Your Employer About Reciprocity
If you live in one state and work in another with a reciprocity agreement, you must tell your employer. Give your employer Form REV-419 (Employee’s Statement of Non-Residence in Pennsylvania) if you live in another state and work in Pennsylvania. Give your employer the equivalent form from your home state if you live in Pennsylvania and work in another state.
Your employer needs this form to withhold the correct state tax. Without the form, your employer may withhold tax for the work state instead of your home state. If that happens, you will need to file a non-resident tax return in the work state to get a refund.
Real Example — Living in New Jersey, Working in Pennsylvania
Meet Maria. She lives in Cherry Hill, New Jersey. She works in Philadelphia, Pennsylvania. Here is her tax situation.
Because of the reciprocity agreement between Pennsylvania and New Jersey, Maria pays New Jersey state income tax only. Her employer in Philadelphia withholds New Jersey tax from her paycheck, not Pennsylvania tax. She never files a Pennsylvania tax return.
However, Maria still pays the Philadelphia non-resident Wage Tax of 3.43 percent because reciprocity does not apply to local taxes. Her employer withholds this tax from her paycheck along with New Jersey state tax. New Jersey gives her a credit for the Philadelphia Wage Tax paid, so she does not pay double tax.
Maria also pays federal income tax, Social Security, and Medicare like any other worker. Her total tax withholding includes federal tax, New Jersey state tax, Philadelphia Wage Tax, Social Security, and Medicare.
Real Example — Living in Pennsylvania, Working in New Jersey
Meet Kevin. He lives in Bucks County, Pennsylvania. He works in Trenton, New Jersey. Here is his tax situation.
Because of the reciprocity agreement between Pennsylvania and New Jersey, Kevin pays Pennsylvania state income tax only. His employer in Trenton withholds Pennsylvania tax from his paycheck, not New Jersey tax. He never files a New Jersey tax return.
Kevin does not pay any local tax in New Jersey because New Jersey has no local income tax. He pays Pennsylvania state tax of 3.07 percent on his income. He also pays federal tax, Social Security, and Medicare.
Kevin’s employer must withhold Pennsylvania tax using Pennsylvania’s withholding rates. The employer may need to register with the Pennsylvania Department of Revenue to do this correctly.
Real Example — Living in Pennsylvania, Working in Delaware No Reciprocity
Meet Sarah. She lives in Chester County, Pennsylvania. She works in Wilmington, Delaware. There is no reciprocity agreement between Pennsylvania and Delaware.
Sarah pays Delaware state income tax on her wages earned in Delaware. Her employer withholds Delaware tax. She then files a Pennsylvania tax return and claims a credit for taxes paid to Delaware. She pays the higher of the two state taxes, not both.
If Delaware’s tax rate is higher than Pennsylvania’s, Sarah pays Delaware tax and owes nothing to Pennsylvania. If Pennsylvania’s tax rate is higher, she pays the difference to Pennsylvania. Sarah must file tax returns in both states every year.
Common Reciprocity Mistakes to Avoid
Here are common mistakes workers make with reciprocity agreements.
Mistake 1 — Assuming reciprocity applies to all neighboring states. It does not. Pennsylvania has reciprocity only with Indiana, Maryland, New Jersey, Ohio, Virginia, and West Virginia. It does NOT have reciprocity with New York or Delaware.
Mistake 2 — Assuming reciprocity applies to local taxes. It does not. The Philadelphia Wage Tax applies to anyone who works in Philadelphia regardless of where they live. The reciprocity agreement does not change this.
Mistake 3 — Not telling your employer about reciprocity. If your employer withholds tax for the wrong state, you will need to file a non-resident return to get a refund. This can take months. Give your employer the correct form when you start your job.
Mistake 4 — Assuming reciprocity applies to all income. It applies only to earned income like wages and salaries. It does not apply to other income like business income, rental income, or retirement income.
H3: How to Claim a Refund If Your Employer Withheld the Wrong State Tax
If your employer withheld tax for the work state instead of your home state despite a reciprocity agreement, you need to file a non-resident tax return in the work state to get a refund.
For example, if you live in Pennsylvania but work in New Jersey and your employer withheld New Jersey tax, file a New Jersey non-resident return. Claim that you are a Pennsylvania resident and that New Jersey should not have withheld tax because of reciprocity. New Jersey will refund the tax withheld.
At the same time, you must pay Pennsylvania tax. You may owe penalties if you did not make estimated payments. Contact a tax professional if this happens.
Use Our Calculator for Cross-Border Workers
Our calculator above includes Pennsylvania tax rates and local taxes. If you live in a neighboring state with reciprocity, select your home state as your state of residence. The calculator will apply your home state tax rate.
If you work in Philadelphia but live in New Jersey, select New Jersey as your state and Philadelphia as your work location. The calculator will apply New Jersey state tax and the Philadelphia non-resident Wage Tax of 3.43 percent. You will see your exact take-home pay after all taxes.
The calculator updates instantly with every change. No buttons. No waiting. No signup.
Real Example — $100,000 Salary in Pennsylvania with Noah
Let us walk through a real example. Meet Noah.
Noah lives in Harrisburg, Pennsylvania. He earns $100,000 per year. He is single, has no dependents, and contributes 5 percent to his 401k. He also pays $150 per paycheck for health insurance. He lives and works in Harrisburg, so he pays the Harrisburg EIT of 2.00 percent and the LST of $52 per year. Here is exactly how his paycheck breaks down step by step.
Step 1 — Gross Pay Per Year and Per Paycheck
Noah earns $100,000 per year. He gets paid every two weeks, which means 26 paychecks per year. $100,000 divided by 26 equals $3,846.15 gross pay per paycheck before any deductions.
Step 2 — Pre-tax Deductions
Noah contributes 5 percent of his salary to his 401k. $3,846.15 times 0.05 equals $192.31 per paycheck going to his retirement account. He also pays $150 per paycheck for health insurance. Both are pre-tax deductions, meaning they come out before taxes are calculated. His total pre-tax deductions per paycheck are $192.31 plus $150 equals $342.31.
Step 3 — Taxable Gross Pay for Federal Taxes
Taxable gross pay for federal taxes is what remains after pre-tax deductions are removed. $3,846.15 minus $342.31 equals $3,503.84 taxable gross per paycheck. This is the amount on which Noah pays federal taxes.
Step 4 — Federal Income Tax
To calculate federal tax, we first annualize the taxable gross pay. $3,503.84 times 26 paychecks equals $91,099.84 annual taxable income. Now subtract the federal standard deduction for a single filer, which is $15,000 in 2026. His taxable income becomes $76,099.84.
Now apply the 2026 federal tax brackets for a single filer. He pays 10 percent on the first $11,925 which equals $1,192.50. He pays 12 percent on income from $11,926 to $48,475 which equals $4,386. He pays 22 percent on the remaining income from $48,476 to $76,099 which equals $6,077. His total annual federal tax is $1,192.50 plus $4,386 plus $6,077 equals $11,655.50. Divide by 26 paychecks to get his federal tax per paycheck, which is approximately $448.29.
Step 5 — Pennsylvania State Income Tax
Pennsylvania has a flat state income tax of 3.07 percent. This tax applies to gross income before pre-tax deductions. Noah’s gross income is $100,000 per year. $100,000 times 0.0307 equals $3,070 per year in Pennsylvania state tax. Divide by 26 paychecks to get his state tax per paycheck, which is approximately $118.08.
Important note: Pennsylvania has no standard deduction and no personal exemptions. Noah pays state tax on his full $100,000 income, not a reduced amount.
Step 6 — Local EIT Earned Income Tax
Noah lives and works in Harrisburg. Harrisburg has an EIT of 2.00 percent. This tax applies to earned income. Noah’s gross income is $100,000. $100,000 times 0.02 equals $2,000 per year in EIT. Divide by 26 paychecks to get his EIT per paycheck, which is approximately $76.92.
Step 7 — LST Local Services Tax
Harrisburg has an LST of $52 per year for most workers. Noah is paid biweekly, so his employer divides $52 by 26 paychecks. His LST per paycheck is approximately $2.00.
Step 8 — PA SUI State Unemployment Insurance
Pennsylvania employees pay SUI at 0.07 percent on the first $10,000 of wages. Noah earns $100,000, but the tax only applies to the first $10,000. $10,000 times 0.0007 equals $7 per year. Divide by 26 paychecks to get his PA SUI per paycheck, which is approximately $0.27.
Step 9 — Social Security and Medicare
FICA taxes are calculated on gross pay before pre-tax deductions. Social Security tax is 6.2 percent of gross pay. $3,846.15 times 0.062 equals $238.46 per paycheck. Medicare tax is 1.45 percent of gross pay. $3,846.15 times 0.0145 equals $55.77 per paycheck. His total FICA taxes per paycheck are $238.46 plus $55.77 equals $294.23.
H3: Step 10 — Net Pay Take-Home Pay
Now subtract all deductions from gross pay per paycheck.
Gross pay: $3,846.15
Minus pre-tax deductions (401k + health insurance): -$342.31
Minus federal tax: -$448.29
Minus Pennsylvania state tax: -$118.08
Minus Harrisburg EIT: -$76.92
Minus Harrisburg LST: -$2.00
Minus PA SUI: -$0.27
Minus Social Security: -$238.46
Minus Medicare: -$55.77
$3,846.15 – $342.31 = $3,503.84
$3,503.84 – $448.29 = $3,055.55
$3,055.55 – $118.08 = $2,937.47
$2,937.47 – $76.92 = $2,860.55
$2,860.55 – $2.00 = $2,858.55
$2,858.55 – $0.27 = $2,858.28
$2,858.28 – $238.46 = $2,619.82
$2,619.82 – $55.77 = $2,564.05
Noah’s net take-home pay per biweekly paycheck is approximately $2,564.
Summary — Where Did Noah’s Money Go?
Noah earns $3,846 in gross pay per biweekly paycheck before any deductions.
From this amount:
$192 goes to his 401k retirement account (5 percent of gross pay)
$150 goes to his health insurance premium
$448 goes to federal income tax
$118 goes to Pennsylvania state tax (3.07 percent)
$77 goes to Harrisburg EIT (2.00 percent)
$2 goes to Harrisburg LST ($52 per year)
$0.27 goes to PA SUI (0.07 percent)
$238 goes to Social Security (6.2 percent)
$56 goes to Medicare (1.45 percent)
After all these deductions, Noah takes home $2,564 in net pay per paycheck. This means Noah keeps approximately 67 percent of his gross pay. The other 33 percent goes to federal taxes, state taxes, local taxes, retirement, health insurance, and other deductions.
What If Noah Lived in Philadelphia Instead?
If Noah lived and worked in Philadelphia instead of Harrisburg, his taxes would be different. Philadelphia has no EIT. Instead, Philadelphia has a Wage Tax of 3.74 percent for residents.
His Philadelphia Wage Tax would be $100,000 times 0.0374 equals $3,740 per year or about $143.85 per biweekly paycheck. Philadelphia also has an LST of $156 per year, which is about $6 per biweekly paycheck.
His net take-home pay in Philadelphia would be approximately $2,450 per biweekly paycheck, which is about $114 less per paycheck than Harrisburg. The difference comes from Philadelphia’s higher Wage Tax (3.74 percent vs Harrisburg’s 2.00 percent EIT) and higher LST ($156 vs $52).
What If Noah Lived in a Suburb with 1% EIT?
If Noah lived in a Pennsylvania suburb with a 1.00 percent EIT and $52 LST instead of Harrisburg’s 2.00 percent EIT, his net take-home pay would increase.
His EIT would be $100,000 times 0.01 equals $1,000 per year or $38.46 per paycheck instead of $76.92. His net take-home pay would be approximately $2,602 per biweekly paycheck, which is about $38 more per paycheck than Harrisburg.
Choosing where to live in Pennsylvania can save you hundreds or even thousands of dollars per year in local taxes. A 1 percent difference in EIT on a $100,000 salary is $1,000 per year or $38 per paycheck.
What If Noah Increased His 401k to 10 Percent?
If Noah increased his 401k contribution from 5 percent to 10 percent, his 401k deduction would increase from $192 to $384 per paycheck. His taxable income would decrease, so his federal tax would drop by about $40 per paycheck. His Pennsylvania state tax would also drop because state tax is calculated on gross pay, which would still be $100,000. State tax does not change with 401k contributions in Pennsylvania because the state has no deduction for 401k contributions.
His net pay would decrease by about $150 per paycheck while saving an additional $192 for retirement.
What If Noah Was Married Filing Jointly?
If Noah was married and filing jointly with the same $100,000 household income, his federal tax would drop from $11,655 per year to approximately $7,500 per year. His Pennsylvania state tax would remain the same because Pennsylvania’s flat tax does not change with filing status. His local EIT would remain the same.
His net pay would increase by about $160 per paycheck.
What If Noah Had Two Children?
If Noah had two children under 17, he would receive a $2,000 child tax credit per child, totaling $4,000. This credit directly reduces his federal tax bill. His federal tax would drop from $11,655 to approximately $7,655 per year. His net pay would increase by about $154 per paycheck. His Pennsylvania state tax and local EIT would not change because Pennsylvania does not offer child-related deductions or credits.
Why Understanding Pennsylvania’s Unique Taxes Matters
Pennsylvania has a unique tax system compared to other states. The flat 3.07 percent state tax is simple, but the local taxes are complex. Most workers pay local EIT between 0.5 percent and 3.75 percent plus LST between $52 and $156 per year. Philadelphia workers pay the Wage Tax instead of EIT.
On a $100,000 salary, the difference between living in a no-EIT area and a 3.75 percent EIT area is $3,750 per year or $144 per paycheck. Choosing where to live matters.
Our calculator above includes all Pennsylvania taxes. Enter your salary, select your city, and see your exact take-home pay. The calculator includes state tax (3.07 percent), local EIT, LST, Philadelphia Wage Tax if applicable, PA SUI (0.07 percent), federal tax, Social Security, and Medicare. The calculator updates instantly with every change. No buttons. No waiting. No signup.
Pennsylvania vs Other States — How Your Location Affects Your Paycheck
How to Save on Federal Taxes in Pennsylvania — 7 Legal Strategies
While Pennsylvania has its own state income tax of 3.07 percent and local taxes, you still pay federal income tax, Social Security tax, and Medicare tax. Here are seven legal ways to reduce your federal tax bill and keep more of your paycheck. These strategies work for both hourly and salaried workers in Pennsylvania.
Strategy One — Increase Your 401k Contributions
Every dollar you contribute to your 401k reduces your federal taxable income. If you earn $60,000 per year and increase your 401k contribution by 1 percent ($600 per year or $50 per month), your taxable income drops to $59,400. If you are in the 12 percent tax bracket, you save approximately $72 in federal taxes per year. Your monthly paycheck only drops by about $44 because of the tax savings.
Important note for Pennsylvania residents — Pennsylvania does NOT allow a deduction for 401k contributions on your state tax return. Your Pennsylvania taxable income remains your full gross income regardless of your 401k contributions. However, the federal tax savings still make 401k contributions worthwhile.
The best part is that you are also saving for retirement. Your money grows tax-free until you withdraw it. Many employers also offer a matching contribution, which is free money added to your account. If your employer matches 50 percent of your contributions up to 6 percent of your salary, that is an additional $1,800 per year on a $60,000 salary going into your retirement account.
How to implement — Increase your 401k contribution by 1 percent today. Then increase it by another 1 percent every year until you reach at least 10 to 15 percent. The federal tax savings make the hit to your monthly paycheck much smaller than you think.
Strategy Two — Contribute to an HSA Health Savings Account
If you have a high-deductible health plan, you can contribute to an HSA. In 2026, you can contribute up to $4,300 for individual coverage or $8,550 for family coverage. HSA contributions are pre-tax, meaning they reduce your federal taxable income.
The money grows tax-free, and withdrawals for medical expenses are also tax-free. This is one of the best tax-advantaged accounts available because you get a tax deduction when you contribute, tax-free growth, and tax-free withdrawals for qualified medical expenses. Unlike an FSA, HSA funds roll over year after year and never expire. You can also invest HSA funds in stocks and bonds for additional growth.
How to implement — If you have a high-deductible health plan, open an HSA and contribute as much as you can afford. Start with $1,000 per year and increase over time. The federal tax savings will boost your take-home pay.
Strategy Three — Use Your FSA Flexible Spending Account
If your employer offers an FSA, you can contribute up to $3,200 per year in 2026. FSA contributions are pre-tax and reduce your federal taxable income. You can use the money for medical expenses, dental care, vision care, prescription drugs, and even dependent care.
The only catch is that you must use the money by the end of the year or you lose it. Some plans allow a carryover of up to $610 into the next year. Plan your contributions carefully based on your expected medical and dependent care expenses.
How to implement — Calculate your expected medical and dependent care expenses for the year. Contribute that exact amount to your FSA. Do not over-contribute or you may lose the money.
Strategy Four — Claim All Dependents You Qualify For
Each dependent child under 17 gives you a $2,000 child tax credit. This credit directly reduces your federal tax bill dollar for dollar. If you have two children, that is $4,000 less tax you owe. If you have three children, that is $6,000 less tax you owe.
Other dependents like elderly parents or adult children with disabilities may qualify for a $500 credit for other dependents. Update your W-4 with your employer when you have a new child so they withhold less tax from each paycheck. You do not have to wait until tax time to get this benefit.
Important note — Pennsylvania does not offer any child tax credit or dependent exemption. The child tax credit only affects your federal taxes, not your Pennsylvania state tax or local taxes.
How to implement — Update your W-4 form immediately after having a child. Claim the child tax credit on line 3 of your W-4. Your employer will withhold less federal tax from each paycheck, giving you more take-home pay throughout the year.
Strategy Five — Itemize Deductions If You Have Enough
The standard deduction for 2026 is $15,000 for single filers and $30,000 for married couples filing jointly. If your itemized deductions exceed these amounts, you should itemize instead of taking the standard deduction.
Common itemized deductions include mortgage interest on your home, state and local taxes up to $10,000, charitable donations to qualified organizations, medical expenses exceeding 7.5 percent of your income, and casualty and theft losses in federally declared disaster areas.
For Pennsylvania residents, your state and local tax deduction includes your Pennsylvania state income tax (3.07 percent), local EIT, Philadelphia Wage Tax, and property taxes. However, the federal cap is $10,000 total. Most Pennsylvania homeowners hit this cap quickly.
How to implement — Keep receipts and records for all deductible expenses throughout the year. Add up your mortgage interest, property taxes, state income taxes, local taxes, charitable donations, and medical expenses. If the total exceeds $15,000 (single) or $30,000 (married), itemize your deductions on your federal tax return.
Strategy Six — Contribute to a Traditional IRA
If your employer does not offer a 401k, or even if they do, you can contribute to a traditional IRA. In 2026, you can contribute up to $7,000 per year. If you are age 50 or older, you can contribute up to $8,000 per year as a catch-up contribution.
Traditional IRA contributions are tax-deductible depending on your income and whether you have a workplace retirement plan. If you are single and your modified adjusted gross income is under $73,000, you can take the full deduction. Even if you earn more, you may still qualify for a partial deduction. The contribution reduces your federal taxable income.
Important note — Pennsylvania does not allow a deduction for IRA contributions. Your Pennsylvania taxable income remains your full gross income regardless of your IRA contributions. However, the federal tax savings still make IRA contributions worthwhile.
How to implement — Open a traditional IRA at any bank or brokerage. Set up automatic monthly contributions of $583 per month to reach the $7,000 limit. The federal tax deduction will increase your take-home pay.
Strategy Seven — Harvest Tax Losses on Your Investments
If you have investments in stocks, bonds, or mutual funds that have lost value, you can sell them to realize the loss. These capital losses can offset capital gains from investments that have gone up in value. If your losses exceed your gains, you can deduct up to $3,000 per year against your ordinary income like your salary or wages. Any unused losses can be carried forward to future tax years.
For Pennsylvania residents, capital gains are taxed as regular income at 3.07 percent plus applicable local taxes. Harvesting tax losses reduces both your federal and Pennsylvania state taxable income.
How to implement — Review your investment portfolio at the end of each year. Sell investments that have lost value to offset gains from investments that have increased. Use the $3,000 deduction to reduce your taxable income and increase your take-home pay.
Quick Summary — Which Strategy is Best for Your Situation
Here is a simple guide to help you decide which strategy to focus on first.
If you are young and saving for retirement, increase your 401k contribution to at least 10 to 15 percent. The federal tax savings plus employer match and compound growth over time will make a huge difference in your retirement savings. This is strategy one.
If you have a high-deductible health plan, max out your HSA first. An HSA offers triple tax benefits. You get a tax deduction when you contribute, tax-free growth, and tax-free withdrawals for medical expenses. No other account offers this combination. This is strategy two.
If you have children, claim the child tax credit on your W-4. Update your W-4 with your employer so they withhold less federal tax from each paycheck. You get the benefit throughout the year instead of waiting for a refund. This is strategy four.
If you own a home with a mortgage and pay significant mortgage interest and property taxes, itemize your deductions. Compare your total itemized deductions to the standard deduction and choose the larger amount. This is strategy five.
If your employer does not offer a 401k, open a traditional IRA. You can contribute up to $7,000 per year and deduct the contribution from your federal taxable income. This is strategy six.
If you have investments that have lost value, harvest tax losses. Sell losing investments to offset gains from winning investments and deduct up to $3,000 against your ordinary income. This is strategy seven.
Important Note for Pennsylvania Residents
Most of these strategies reduce your federal taxable income but do NOT reduce your Pennsylvania state taxable income. Pennsylvania does not allow deductions for 401k contributions, IRA contributions, HSA contributions (for state tax), or FSA contributions. Your Pennsylvania state tax is calculated on your full gross income regardless of these contributions.
However, the federal tax savings are significant. A $5,000 401k contribution saves you about $1,100 in federal taxes (22 percent bracket) but does not save you any Pennsylvania state tax. You still come out ahead because of the federal savings.
The only strategies that reduce your Pennsylvania state tax are itemized deductions that include state and local taxes (up to $10,000 federal cap) and tax loss harvesting which reduces your capital gains.
Use Our Calculator to See Your Tax Savings
Try our calculator above. Increase your 401k contribution by 1 percent, 2 percent, or 5 percent and watch your federal tax drop. The calculator shows both federal and Pennsylvania state taxes. You can see exactly how much each strategy saves you before you make any changes to your actual paycheck. The calculator updates instantly with every change. No buttons. No waiting. No signup.
Frequently Asked Questions — Pennsylvania Paycheck & Taxes
Here are answers to the most common questions people ask about Pennsylvania paychecks, taxes, and take-home pay.
Pennsylvania has a flat state income tax rate of 3.07 percent for all income levels. Unlike progressive states where higher incomes are taxed at higher rates, Pennsylvania charges the same percentage whether you earn $30,000 or $300,000 per year. Pennsylvania has no standard deduction and no personal exemptions. You pay state tax on your full gross income.
Yes, many Pennsylvania cities have local income taxes. Most cities charge an Earned Income Tax or EIT ranging from 0.312 percent to 3.75 percent. Many cities also charge a Local Services Tax or LST which is a fixed dollar amount of $10, $52, or $156 per year. Philadelphia has a Wage Tax of 3.74 percent for residents and 3.43 percent for non-residents instead of EIT.
LST stands for Local Services Tax. It is a fixed dollar tax collected by many Pennsylvania cities. Most workers pay $52 per year. Low-wage earners earning less than $12,000 per year pay $10 per year or are exempt. Workers in Philadelphia and some other cities pay $156 per year. Your employer divides the annual amount by the number of pay periods and deducts a small amount from each paycheck.
The Philadelphia Wage Tax is a local tax paid by anyone who works in Philadelphia. Philadelphia residents pay 3.74 percent. Non-residents who work in Philadelphia pay 3.43 percent. This tax replaces the EIT and LST that other Pennsylvania cities use. If you work in Philadelphia, you pay this tax regardless of where you live.
Yes, Pennsylvania has reciprocity agreements with Indiana, Maryland, New Jersey, Ohio, Virginia, and West Virginia. If you live in one of these states and work in Pennsylvania, you pay state income tax only to your home state. If you live in Pennsylvania and work in one of these states, you pay state income tax only to Pennsylvania. Reciprocity does NOT apply to local taxes like the Philadelphia Wage Tax.
The minimum wage in Pennsylvania for 2026 is $7.25 per hour, which follows the federal minimum wage rate. Overtime pay is one and a half times your regular rate for all hours worked over 40 hours per week.
For a single filer living in Harrisburg with a 5 percent 401k contribution and $150 per paycheck for health insurance, your net take-home pay is approximately $2,564 per biweekly paycheck or $5,128 per month. This includes federal tax, Pennsylvania state tax (3.07 percent), Harrisburg EIT (2.00 percent), Harrisburg LST ($52 per year), PA SUI (0.07 percent), Social Security, and Medicare. In Philadelphia, take-home pay is approximately $2,450 per paycheck. In Scranton, take-home pay is approximately $2,520 per paycheck.
No. Pennsylvania has no standard deduction for state income tax purposes. You pay state tax on your full gross income. There are also no personal exemptions in Pennsylvania. Your filing status and number of dependents do not affect your Pennsylvania state tax.
No. Pennsylvania does not tax Social Security benefits, 401k withdrawals, IRA withdrawals, pension income, or annuity payments. This makes Pennsylvania attractive for retirees who want to keep more of their retirement savings. However, Pennsylvania does tax earned income from work including wages, salaries, bonuses, commissions, and self-employment income.
No. Pennsylvania does not have an estate tax or inheritance tax. This is different from some neighboring states like New Jersey which had an estate tax (repealed for deaths after January 1, 2018) and Maryland which still has an inheritance tax. You do not need to worry about either tax affecting your family's inheritance.
Because of the reciprocity agreement between Pennsylvania and New Jersey, you pay New Jersey state income tax only. Your employer in Pennsylvania should withhold New Jersey tax from your paycheck, not Pennsylvania tax. You never file a Pennsylvania state tax return. However, you still pay the Philadelphia Wage Tax of 3.43 percent if you work in Philadelphia because reciprocity does not apply to local taxes.
There is no reciprocity agreement between Pennsylvania and Delaware. You pay Delaware state income tax on your wages earned in Delaware. Your employer withholds Delaware tax. You then file a Pennsylvania tax return and claim a credit for taxes paid to Delaware. You pay the higher of the two state taxes, not both. You must file tax returns in both states.
PA SUI stands for Pennsylvania State Unemployment Insurance. Pennsylvania is one of only a few states where employees contribute to unemployment insurance. The PA SUI rate for employees is 0.07 percent on the first $10,000 of wages. On a $50,000 salary, you pay only $7 per year. On a $100,000 salary, you also pay only $7 per year because the tax stops when you earn more than $10,000.
For 2026, the Social Security wage base is $184,500. You pay 6.2 percent Social Security tax on the first $184,500 you earn. Once you earn more than this amount, the Social Security tax stops for the rest of the year. Your paychecks become larger after you reach this limit. For 2025, the limit was $176,100.
Your actual paycheck may differ from our calculator for several reasons. Your employer may use different withholding calculations based on your specific W-4 and PA state withholding forms. You may have additional deductions like life insurance, disability insurance, or union dues. You may have wage garnishments or child support withholdings. Your bonus or commission may have been paid in a different pay period. Your health insurance premiums may be different from our default assumption. Always check your pay stub and compare it to our calculator.
Yes. Our calculator works for both hourly and salaried workers. Switch between hourly and salary mode with one click. Enter your hourly rate and hours worked per week. You can also add overtime hours and the calculator will apply the overtime rate of one and a half times your regular hourly rate. The calculator automatically calculates your gross pay, taxes, and net take-home pay, including Pennsylvania state tax (3.07 percent), local EIT based on your city, LST based on your city, Philadelphia Wage Tax if applicable, and PA SUI (0.07 percent). The minimum wage in Pennsylvania for 2026 is $7.25 per hour.
Related Calculators You May Find Useful
Try these other free calculators to help with your financial planning. All calculators are 100% free, no signup required, and updated for 2026 tax laws.
Paycheck Calculator — Calculate your take-home pay for any state. Compare different salaries and deduction scenarios. Works for both hourly and salaried workers. Includes all 50 states with accurate tax rates.
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Overtime Calculator — Calculate how much overtime pay increases your paycheck after taxes. Includes time and a half (1.5x) and double time (2x) calculations. See exactly how much your overtime is worth.
Bonus Tax Calculator — See how much of your bonus you actually keep after taxes. Bonuses are taxed at a flat 22 percent federal rate plus state taxes. Our calculator shows your net bonus after all deductions.
Salary Comparison Calculator — Compare two job offers side by side. See after-tax take-home pay, state tax differences, and which job pays more. Essential for deciding between job offers in different states.
401k Calculator — Calculate how different contribution percentages affect your take-home pay and retirement savings. See the tax savings from increasing your contributions. Compare traditional vs Roth 401k options.
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State Paycheck Calculators
Texas Paycheck Calculator — Calculate take-home pay in Texas with zero state income tax. No SDI, no local tax. Maximum take-home pay for your salary.
California Paycheck Calculator — Calculate take-home pay in California with 9.3 percent state tax and 1.1 percent SDI. See how much more you would take home in Texas or Pennsylvania.
New Jersey Paycheck Calculator — Calculate take-home pay in New Jersey with progressive state tax from 1.4 percent to 10.75 percent. Compare New Jersey with Pennsylvania.
Ohio Paycheck Calculator — Calculate take-home pay in Ohio with progressive state tax from 1.5 percent to 4.8 percent. Compare Ohio with Pennsylvania.
New York Paycheck Calculator — Calculate take-home pay in New York with progressive state tax from 4.0 percent to 10.9 percent plus NYC local tax. Compare New York with Pennsylvania.
Florida Paycheck Calculator — Calculate take-home pay in Florida with zero state income tax. No SDI, no local tax. Compare Florida minimum wage with Pennsylvania.
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Pennsylvania users get accurate calculations including the flat 3.07 percent state income tax, local EIT rates for all major cities, LST of $10, $52, or $156 per year, Philadelphia Wage Tax of 3.74 percent for residents and 3.43 percent for non-residents, PA SUI of 0.07 percent on the first $10,000 of wages, and the correct minimum wage of $7.25 per hour for 2026.
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Our calculator includes federal income tax, Pennsylvania state income tax (3.07 percent), local EIT, LST, Philadelphia Wage Tax, PA SUI, Social Security tax (6.2 percent up to $184,500), Medicare tax (1.45 percent plus additional 0.9 percent for high earners), and pre-tax deductions like 401k contributions, health insurance, HSA, and FSA. Most competitors miss multiple deductions. We include everything.
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