How Much Is Pennsylvania State Income Tax in 2026?

Quick Answer: A Flat 3.07% From Dollar One

For the 2026 tax year, Pennsylvania taxes eight classes of income — including wages, salaries, bonuses, and self-employment income — at a single flat rate of 3.07%. Unlike most states and the federal government, Pennsylvania offers:

• No standard deduction
• No personal or dependent exemptions
• No deduction for 401(k) contributions at the state level

That means a worker earning $30,000 pays the same 3.07% rate as one earning $300,000 — and both pay it on (nearly) every dollar. For a single filer earning $100,000, the estimated take-home pay is roughly $76,110 after federal tax, FICA, and the 3.07% state tax — before any local earned income tax.

How Pennsylvania Taxes Your Income in 2026

Pennsylvania's flat 3.07% applies to eight classes of income: compensation (wages and salaries), interest, dividends, net business profits, net gains from property sales, net rents and royalties, estate and trust income, and gambling winnings. Two features make the Commonwealth unusual:

• The rate has not changed since 2004. At 3.07%, it is the lowest flat income tax rate in the country — lower than Illinois (4.95%), Indiana (~3%), or any graduated state's top bracket.
• It does not conform to federal deductions. Your 401(k) contribution, itemized deductions, and the federal standard deduction do nothing for your Pennsylvania bill. State tax is essentially calculated on your gross compensation.

One genuinely bright spot: all retirement income is exempt. Social Security benefits, pensions, and 401(k)/IRA distributions after age 59½ are completely free of Pennsylvania state tax — one reason the state consistently ranks among the most retirement-friendly in the nation.

Local Taxes: The Part Most Guides Miss

The 3.07% state rate is only part of the story. Pennsylvania has one of the most extensive local income tax systems in the country:

• Earned Income Tax (EIT): Most municipalities and school districts levy a local EIT, typically around 1% of wages, split between your town and school district.
• Philadelphia wage tax: Residents pay 3.735% (effective July 1, 2026) — the highest city income tax in the nation. On a $100,000 salary, that is an extra $3,735 per year on top of the state tax.
• Pittsburgh: Residents pay 3% (a 1% city tax plus a 2% school district tax).

For many Pennsylvanians, the real combined income tax rate is therefore 4% to nearly 7% — not 3.07%. Where you live within the state matters more than in almost any other.

Pennsylvania Salary After Taxes: Take-Home Pay by Income Level

Here is what a single filer in Pennsylvania can expect to keep in 2026. These estimates use the federal standard deduction, FICA, and the 3.07% state tax — they do not include local EIT (add roughly 1%, or 3.735% in Philadelphia).

Figures use the 2026 IRS federal tax brackets, the single filer standard deduction of $16,100, FICA rates of 6.2% for Social Security (up to the $184,500 wage base) and 1.45% for Medicare, and Pennsylvania's flat 3.07% applied to gross income. Wages above $200,000 for single filers are also subject to an additional 0.9% Medicare tax. Local earned income taxes (typically ~1%, 3.735% in Philadelphia) are excluded.

Pennsylvania vs. Other States: Where Does It Stand?

How does the Keystone State compare with a no-tax state and its high-tax neighbors? Here is the same $100,000 single-filer salary across four states in 2026:

Pennsylvania lands in the middle: workers keep about $1,900 more than New Yorkers at the same salary, but roughly $3,070 less than Texans. Note that this comparison excludes local taxes — a Philadelphia resident would take home about $72,375, behind even New York. Other taxes also differ: Pennsylvania's 6% state sales tax (8% in Philadelphia, 7% in Allegheny County) and an average effective property tax rate of roughly 1.3% — among the dozen highest in the nation — affect your total cost of living.

Tax Forgiveness: Real Relief for Low-Income Workers

Because Pennsylvania offers no standard deduction, its Tax Forgiveness program (claimed on PA Schedule SP) is the main break for lower earners. Depending on your eligibility income and family size, the state will forgive 10% to 100% of your tax bill:

• A single filer with no dependents qualifies for 100% forgiveness with eligibility income up to $6,500, phasing out in 10% steps (each step adds $250 of income) up to $8,750.
• Each dependent raises the 100% threshold by $9,500 — so a single parent with two children can earn up to $25,500 and owe zero state tax.
• Married couples start at a $13,000 threshold, plus $9,500 per dependent.

Important: forgiveness is not automatic. You must file a PA-40 return and attach Schedule SP to claim it, even if you owe nothing.

How to Pay Less Tax in Pennsylvania

Pennsylvania's rules close some doors but leave others wide open. The most effective strategies:

• Max out a traditional 401(k) anyway: Contributions do not reduce your Pennsylvania tax, but they cut your federal taxable income — worth 22% or more per dollar at most incomes. In 2026, the employee limit is $24,500 ($32,500 if you are 50 or older). And because Pennsylvania exempts retirement distributions after 59½, you effectively pay 0% state tax on that money forever.
• Contribute to an HSA: Payroll contributions avoid federal income tax and FICA. For 2026, the limits are $4,400 for self-only coverage and $8,750 for family coverage.
• Use a health FSA: Set aside up to $3,400 in 2026 pre-tax for medical expenses, reducing your federal taxable income.
• Claim Tax Forgiveness if eligible: Thousands of low-income households miss Schedule SP every year. Check the thresholds above.
• Retire in Pennsylvania: With Social Security, pensions, and retirement account withdrawals all exempt, retirees often pay zero state income tax.

2026 Federal Tax Basics for Pennsylvania Workers

Your paycheck depends as much on Washington as on Harrisburg. Here are the key 2026 federal numbers:

• Standard deduction (single): $16,100
• Standard deduction (married filing jointly): $32,200
• Standard deduction (head of household): $24,150

2026 Federal Tax Brackets for Single Filers

Frequently Asked Questions

What is the Pennsylvania state income tax rate in 2026?

A flat 3.07% on gross income, confirmed by the Pennsylvania Department of Revenue. The rate has been unchanged since 2004 and is the lowest flat rate in the country — but there is no standard deduction or personal exemption, so it applies from the first dollar you earn.

How much is $100,000 after taxes in Pennsylvania?

A single filer earning $100,000 pays approximately $13,170 in federal income tax, $7,650 in FICA, and $3,070 in Pennsylvania state tax, leaving an estimated take-home pay of about $76,110. Local earned income tax (typically ~1%, or 3.735% in Philadelphia) would reduce this further.

Does Pennsylvania have local income taxes?

Yes — most municipalities and school districts levy an Earned Income Tax, typically around 1%. Philadelphia's wage tax is 3.735% for residents as of July 1, 2026 (the nation's highest city rate), and Pittsburgh's combined city and school district rate is 3%.

Does Pennsylvania tax Social Security or retirement income?

No. Pennsylvania exempts all retirement income: Social Security benefits, public and private pensions, and 401(k)/IRA distributions after age 59½. It is one of the most retirement-friendly states in the country.

Does contributing to a 401(k) reduce my Pennsylvania state tax?

No. Pennsylvania does not conform to the federal treatment — 401(k) contributions are included in your state taxable compensation. However, they still reduce your federal tax, and qualified distributions in retirement are exempt from Pennsylvania tax, so the money is never taxed by the state.

Are bonuses taxed in Pennsylvania?

Yes. Bonuses are taxed as ordinary compensation at the flat 3.07% state rate, plus any local EIT. Federal withholding on bonuses is typically 22% (or 37% above $1 million), and FICA taxes also apply.

How can I calculate my exact Pennsylvania after-tax income?

Use our free Pennsylvania after tax income calculator to get a personalized estimate based on your exact income, filing status, 401(k), and HSA contributions.