How to Use This Calculator
Enter your income, filing status, and any deductions. The calculator computes your Pennsylvania state income tax alongside your federal tax, showing exactly how much goes to each and what you take home.
The most useful thing to try? See how Pennsylvania's flat 3.07% rate affects different income levels, then test how deductions and retirement contributions change your bottom line.
Here's what each field means:
Annual Income is your total earnings before any taxes. Include wages, freelance income, investment income, and any other sources.
Filing Status determines which deductions and exemptions apply. Pennsylvania uses filing statuses similar to the federal system.
Pennsylvania Income Tax: What You Need to Know
Pennsylvania uses a flat income tax of 3.07% on all taxable income. Unlike states with progressive brackets, everyone pays the same percentage regardless of how much they earn. A teacher making $45,000 and a CEO making $500,000 both pay 3.07%.
Pennsylvania has the second-lowest flat income tax rate in the country (after North Dakota's effective rate) at 3.07%. The state has one of the simplest tax systems: a flat 3.07% on virtually all taxable income with very few deductions or exemptions. Pennsylvania doesn't have a standard deduction or personal exemptions — but it also doesn't tax retirement income of any kind, including Social Security, pensions, 401(k) distributions, and IRA withdrawals. This makes Pennsylvania extremely attractive for retirees. The trade-off is that the flat rate gives no break to lower earners.
A Real Example
Let's say you're a single filer earning $70,000 in Pennsylvania. Your approximate Pennsylvania state income tax would be around $2,149, for an effective state tax rate of about 3.1%.
That's just the state portion. Federal income tax and FICA taxes are additional.
Deductions and Exemptions
Pennsylvania allows very few deductions. There's no standard deduction. Unreimbursed employee business expenses, HSA contributions, and IRC Section 529 plan contributions are among the few subtractions available. The total simplicity of the system is both a feature and a bug.
Local Taxes
Yes — and they're significant. Philadelphia levies a wage tax of 3.75% for residents (which is actually higher than the state income tax itself). Many other Pennsylvania municipalities levy local earned income taxes, typically ranging from 0.5% to 2%. School districts can also levy additional income taxes. Pittsburgh residents pay a local earned income tax of 3%.
Recent Changes
The 3.07% rate has been stable for years. There have been periodic proposals to move to a graduated system (which would require a constitutional amendment), but none have succeeded.
How to Use This Calculator Strategically
Model a raise or job change. With a flat tax, the math is simpler — every additional dollar is taxed at 3.07%. But deductions and credits can still shift your effective rate.
Compare filing statuses. Even with a flat rate, different filing statuses unlock different deduction amounts that can affect your bottom line.
Plan retirement contributions. See how 401(k) or IRA contributions reduce your Pennsylvania taxable income and lower your state tax bill.
Evaluate a move. Compare Pennsylvania's flat 3.07% rate to other states. Depending on your income level, a flat tax state might save you money — or cost you more — compared to a progressive system.
References
- Pennsylvania Department of Revenue. (2025). Personal Income Tax.
This calculator is for educational purposes only and does not constitute tax or financial advice. Tax rates and rules change regularly. Consult a qualified tax professional for guidance specific to your situation.