Pennsylvania Income Tax Calculator 2026
See your Pennsylvania state tax, effective rate, and take-home pay in 60 seconds.
- Local income tax is not included because no city, municipality or county was selected. Your actual take-home pay may be lower.
- Local Earned Income Tax is estimated from a representative rate unless you select a specific municipality — actual combined municipal and school district rates vary across roughly 2,500 jurisdictions.
- Pennsylvania Tax Forgiveness (Special Poverty Provisions) is not applied, which can eliminate PA tax entirely for lower-income households.
- The employee unemployment compensation contribution is not deducted.
- Retirement distribution treatment depends on plan qualification and your previously-taxed contributions; where those are unknown the estimate shows a range rather than assuming the full amount is taxable.
- PA Unemployment Compensation (employee share) is not deducted from this estimate.
Estimated federal and state take-home pay based on the information entered. Local taxes, state payroll programs, employer benefits, itemized deductions, tax credits, and special state adjustments may not be included. For Pennsylvania specifically, this estimate does not include pa unemployment compensation (employee share). Tax year 2026. Pennsylvania figures last verified July 19, 2026 — see sources below.
Worked example: A single filer earning $85,000 in Pennsylvania
Start with $85,000 of wages. Pennsylvania applies its flat 3.07% rate, which comes to about $2,610 in state income tax — an effective state rate near 3.1%. Federal income tax and FICA are calculated separately and shown in the calculator above.
Assumes a single filer taking the standard treatment. Figures are educational estimates.
How Pennsylvania taxes income
Pennsylvania is a flat-tax state: all taxable income is taxed at the same 3.07% rate, regardless of how much you earn. There are no brackets to climb.
Pennsylvania generally starts from your federal income, applies state-specific adjustments, and then applies the flat 3.07% rate. Deductions, exemptions, and credits can change the final number — confirm the current details with the Pennsylvania Department of Revenue.
2026 rate structure
Retirement income & Social Security
Pennsylvania is one of the most retirement-friendly states. Distributions from an eligible employer-sponsored retirement plan are NOT taxable once you have met the plan's retirement requirements, and IRA distributions taken on or after age 59.5 are generally not taxable either. Premature or nonqualified distributions are taxable only to the extent they exceed contributions Pennsylvania already taxed, because Pennsylvania recovers your own contributions first. Social Security and military retirement pay are fully exempt. Confirm your plan's qualification with the Pennsylvania Department of Revenue.
Local taxes & reciprocity
Most Pennsylvania municipalities and school districts impose a local Earned Income Tax (commonly ~1%), and Philadelphia levies a separate wage tax.
Reciprocity: Pennsylvania has reciprocity agreements with Indiana, Maryland, New Jersey, Ohio, Virginia, West Virginia. If you live in Pennsylvania and work in one of those states, you pay Pennsylvania tax on those wages and file only in Pennsylvania.
Notable deductions, credits & other taxes
Deductions & credits
- Pennsylvania standard deduction and personal exemptions (verify current amounts with the Pennsylvania Department of Revenue)
- Credit for income taxes paid to other states (for residents with out-of-state income)
- State versions of common credits — earned income, child/dependent care, and education credits — where offered
Capital gains: Pennsylvania has no separate capital gains rate. Capital gains included in your federal AGI are taxed as ordinary income at the flat 3.07% rate.
Property tax: Property taxes in Pennsylvania are assessed and collected locally, so effective rates vary widely by county and municipality. Check your county assessor or the Pennsylvania Department of Revenue for local rates.
Pennsylvania vs. neighboring states
Compared with its neighbors — Delaware, Maryland, New Jersey, New York — Pennsylvania's flat 3.07% sit within the regional range. Effective rates depend heavily on income level, deductions, and local taxes.
Pennsylvania state tax FAQs
What is the Pennsylvania state income tax rate for 2026?
Pennsylvania levies a flat 3.07% income tax that applies to all taxable income, with no graduated brackets.
Does Pennsylvania tax retirement income or Social Security?
Social Security benefits are exempt from Pennsylvania income tax, and so is military retirement pay. Contrary to a common misconception, Pennsylvania does NOT generally tax qualifying retirement distributions: 401(k) and pension distributions are excluded once you have met your plan's retirement requirements, and IRA distributions on or after age 59.5 are generally excluded. Early or nonqualified distributions are taxable only above the contributions Pennsylvania already taxed. Note that local Earned Income Tax applies to wages, not to retirement income. Verify with the Pennsylvania Department of Revenue.
How are capital gains taxed in Pennsylvania?
Pennsylvania has no separate capital gains rate. Capital gains included in your federal AGI are taxed as ordinary income at the flat 3.07% rate.
Is there a local or city income tax in Pennsylvania?
Most Pennsylvania municipalities and school districts impose a local Earned Income Tax (commonly ~1%), and Philadelphia levies a separate wage tax.
Does Pennsylvania have tax reciprocity with neighboring states?
Pennsylvania has reciprocity agreements with Indiana, Maryland, New Jersey, Ohio, Virginia, West Virginia. If you live in Pennsylvania and work in one of those states, you pay Pennsylvania tax on those wages and file only in Pennsylvania. For non-reciprocal states, you generally file a non-resident return there and claim a credit at home.
Sources & verification
Last verified July 19, 2026.