Quick Answer
Pennsylvania state income tax is 3.07% of your gross income for 2026. On a $60,000 salary, you'll pay $1,842 annually in PA state income tax, or about $71 per biweekly paycheck. However, many PA municipalities also charge local income taxes ranging from 0.5% to 3.2%.
Best Answer
Sarah Chen, Payroll Tax Analyst
Best for typical employees living and working in Pennsylvania
How much is Pennsylvania state income tax?
Pennsylvania charges a flat 3.07% state income tax rate on all income levels for 2026. This makes PA one of the lowest flat-rate income tax states in the country. However, the total tax picture is more complex because most Pennsylvania municipalities also impose local income taxes.
The 3.07% state rate applies to all income types: wages, interest, dividends, rental income, and business profits. Unlike federal taxes, there are no brackets or progressive rates — everyone pays the same percentage.
Example: Pennsylvania state tax on different salaries
Here's how the 3.07% state rate affects various income levels (excluding local taxes):
Pennsylvania local income taxes explained
This is where Pennsylvania gets complicated. Most cities, boroughs, townships, and school districts impose additional local income taxes:
Major city local tax rates (2026):
How local taxes work:
Local taxes are typically withheld by your employer along with state taxes. Your employer determines the correct local tax rate based on where you work (not where you live, in most cases).
Total Pennsylvania tax burden examples
Let's look at real-world scenarios combining state and local taxes:
Example 1: $70,000 salary working in Philadelphia
Example 2: $70,000 salary working in suburban township with 1% local tax
Key factors affecting your Pennsylvania taxes
Pennsylvania vs. other states
Pennsylvania's 3.07% state rate is relatively low, but total tax burden can be high due to local taxes:
What you should do
Check your paystub for both "PA State Tax" and "Local Tax" withholding. The local tax description should indicate which municipality is collecting the tax. If you're unsure about your local tax rate, contact your HR department or use our paycheck calculator to model different scenarios.
If you work in one municipality but live in another, you might need to file local tax returns in both places, though most have reciprocal agreements to prevent double taxation.
Key takeaway: Pennsylvania state income tax is 3.07%, but your total PA tax burden typically ranges from 4-7% when including local municipal taxes that vary by location.
Key Takeaway: Pennsylvania charges 3.07% state income tax plus local taxes ranging from 0.5-3.8%, making total PA tax burden location-dependent.
Pennsylvania state tax with common local tax scenarios
| Annual Salary | PA State Tax (3.07%) | With 1% Local Tax | With 2% Local Tax | Philadelphia Total (6.94%) |
|---|---|---|---|---|
| $40,000 | $1,228 | $1,628 | $2,028 | $2,776 |
| $60,000 | $1,842 | $2,442 | $3,042 | $4,164 |
| $80,000 | $2,456 | $3,256 | $4,056 | $5,552 |
| $100,000 | $3,070 | $4,070 | $5,070 | $6,940 |
| $150,000 | $4,605 | $6,105 | $7,605 | $10,410 |
More Perspectives
Sarah Chen, Payroll Tax Analyst
Best for people who moved to or from Pennsylvania during the tax year
Pennsylvania tax for new residents
If you moved to Pennsylvania mid-year, you'll need to file as a part-year resident and pay PA taxes only on income earned while living in Pennsylvania. This includes both the 3.07% state tax and any applicable local taxes.
Complex local tax situations for movers
Moving within Pennsylvania can be particularly complex due to local tax variations:
Example: You move from Philadelphia (3.8712% local tax) to suburban Montgomery County (1% local tax) mid-year
Key considerations for PA newcomers
Key takeaway: New PA residents face both state (3.07%) and local taxes on PA-earned income, with complex filing requirements when moving between different local tax jurisdictions.
Key Takeaway: New Pennsylvania residents must navigate both state and highly variable local tax obligations, requiring careful attention to withholding and filing requirements.
Sarah Chen, Payroll Tax Analyst
Best for people who live in Pennsylvania but work remotely for out-of-state companies
Pennsylvania tax for remote workers
If you live in Pennsylvania but work remotely for an out-of-state company, you owe Pennsylvania state income tax (3.07%) plus local taxes based on where you live, not where your employer is located.
Local tax complications for remote workers
Unlike simple state-only taxation, PA remote workers must also handle local taxes:
Scenario: You live in Pittsburgh but work remotely for a New York company
Managing multi-jurisdictional withholding
Most out-of-state employers won't handle PA state and local withholding, leaving you with several options:
1. Quarterly estimated payments: Send payments to both PA state and local tax collectors
2. Voluntary withholding: Ask your employer to withhold a flat amount for PA taxes
3. Increased federal withholding: Over-withhold federal taxes to cover PA obligations
Calculating your PA tax obligations
As a remote worker, set aside:
Example: $80,000 remote salary living in a 1.5% local tax area
Key takeaway: PA remote workers owe both 3.07% state tax and local taxes based on residence location, typically requiring manual estimated payments since out-of-state employers don't withhold PA taxes.
Key Takeaway: Pennsylvania remote workers must handle both state (3.07%) and local tax obligations through estimated payments, as out-of-state employers typically don't withhold PA taxes.
Sources
- IRS Publication 15-T — Federal Income Tax Withholding Methods
- Pennsylvania Department of Revenue - Income Tax Information — Pennsylvania state income tax rates and filing information
Reviewed by Sarah Chen, Payroll Tax Analyst on February 28, 2026
This content is for educational purposes only and is not a substitute for professional tax advice. Consult a qualified tax professional for advice specific to your situation.