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State Tax Guide 2026

Pennsylvania Income Tax

Pennsylvania has a flat 3.07% income tax — one of the lowest flat rates among states that have an income tax. However, Pennsylvania also has over 2,500 local tax jurisdictions that levy Earned Income Taxes (EIT), typically adding 1%–3.79% on top.

3.07%
State Income Tax
Flat
Tax Type
3.79%
Philadelphia EIT
6%
Sales Tax

2026 Pennsylvania State Income Tax

All IncomeState RateExample: $80K
$0 and above (net taxable income)3.07%$2,456

Pennsylvania Local Earned Income Tax (EIT)

In addition to state tax, Pennsylvania municipalities and school districts levy a local Earned Income Tax. You pay based on where you live (not where you work, generally). Philadelphia has its own wage tax.

MunicipalityLocal EIT RateNotes
Philadelphia3.79%Residents; 3.44% for non-residents working in Philly
Pittsburgh3.0%1% city + 2% school district
Allentown1.9%Municipal + school
Erie1.8%Municipal + school
Reading2.0%Municipal + school
Most PA municipalities1.0%–2.0%Split between municipality and school district

What's Taxed in Pennsylvania?

✅ Taxable in PA

  • • Wages and salaries
  • • Net profits from business
  • • Rental income
  • • Capital gains
  • • Gambling and lottery winnings
  • • Interest and dividends

🚫 NOT Taxable in PA

  • • Social Security benefits
  • • Pension income (most)
  • • IRA / 401(k) distributions
  • • Military retirement pay
  • • Unemployment compensation
  • • Workers' compensation

Key Pennsylvania Tax Notes

No Standard Deduction
PA does not have a standard deduction. You can deduct unreimbursed employee business expenses and some other items.
PA Tax Forgiveness Credit
Low-income residents may qualify for full or partial forgiveness of PA income tax (income-based).
Philadelphia Wage Tax
Philadelphia has a separate wage tax: 3.79% for residents, 3.44% for non-residents working in the city.
PA Sales Tax
6% state sales tax; Philadelphia and Allegheny County add 2% locally (8% total in those areas).
No Estate or Inheritance Tax (state)
PA has no state estate tax, but has an inheritance tax of 4.5%–15% depending on the heir's relationship.

Calculate Your Pennsylvania Tax

PA state + local EIT — see your true PA tax burden and take-home pay.

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