Pennsylvania Take-Home Pay Calculator (2026)

Pennsylvania has a flat state income tax rate of 3.07%, one of the lowest rates among states that impose an income tax. The rate has been 3.07% for more than two decades and is set in the state constitution, making it politically difficult to change without significant legislative effort. At 3.07%, Pennsylvania workers pay less in state income tax than their counterparts in nearly every other state with an income tax.

Pennsylvania is one of the most favorable states for retirement income. The state fully exempts retirement income from state income tax, including 401k distributions, IRA withdrawals, pension income, and Social Security. Workers who live and retire in Pennsylvania pay no state tax on their retirement savings distributions. This exemption applies regardless of income level, unlike in some states where exemptions phase out for higher earners.

Local income taxes add significantly to the Pennsylvania picture. The Earned Income Tax is levied by municipalities and school districts throughout the state. Rates vary, but most workers in the Philadelphia area pay 3.75% (city residents) or higher combined rates. Pittsburgh residents pay 3%. Workers in smaller municipalities often pay 1% to 2% in combined local earned income tax. Adding the local rate to the state rate, most Pennsylvania workers pay a combined income tax of 4% to 7%.

Philadelphia levies a wage tax on both residents and non-residents working in the city. The resident rate is 3.75% and the non-resident rate for workers coming into the city to work is 3.44%. Combined with Pennsylvania's 3.07% state rate, Philadelphia workers pay over 6.8% in combined state and local income tax, making Philadelphia one of the more costly cities in the country for income taxes despite Pennsylvania's otherwise low flat rate.