Pennsylvania Payroll · Flat 3.07% State Tax · IRS Publication 15-T
Pennsylvania Paycheck Calculator 2025
Estimate your Pennsylvania take-home pay for hourly or salaried work. Pennsylvania withholds a flat 3.07% state income tax plus a 0.07% employee unemployment contribution, and most workers also owe a local Earned Income Tax. Uses 2025 IRS Publication 15-T rates.
Pay Details
Check this on Form W-4 if you hold two jobs or your spouse also works. It switches to the higher Step 2 withholding schedule.
Pre-Tax Deductions (Optional)
Traditional elective deferral. Lowers federal tax but not PA tax.
Cafeteria-plan medical premiums. Lowers federal, PA, and FICA wages.
W-4 Adjustments (Optional)
Annual dependent credit total (e.g. $2,000 per child under 17)
Step 4c additional withholding per paycheck
Pennsylvania Local Taxes
Act 32 rate for your municipality. Philadelphia residents enter 3.735 (City Wage Tax).
Flat annual amount, commonly $52. Leave 0 in Philadelphia.
Pennsylvania income tax is a flat 3.07% with no state W-4, no brackets, and no standard deduction. The 0.07% employee unemployment contribution is applied automatically to all gross wages with no cap.
Enter your pay details and click Calculate to see your take-home pay breakdown.
Want the full Pennsylvania payroll picture, including employer taxes, Act 32 PSD codes, the Philadelphia Wage Tax, and withholding rules? Read the Pennsylvania Payroll Taxes guide.
Pennsylvania Payroll Taxes Guide →Short Answer
This Pennsylvania paycheck calculator estimates net take-home pay after federal income tax withholding, Social Security (6.2%), Medicare (1.45%), Pennsylvania income tax at a flat 3.07%, the 0.07% employee unemployment contribution, and any local Earned Income Tax or Local Services Tax you enter. For a single filer earning $55,000 per year paid biweekly in a municipality with a 1% local EIT and a $52 Local Services Tax, gross pay is $2,115.38 per period and Pennsylvania net take-home is approximately $1,689. The most important Pennsylvania quirk: 401(k) elective deferrals lower your federal withholding but are still fully subject to the 3.07% state tax.
Key Takeaways
- Pennsylvania income tax is a flat 3.07% on taxable compensation. There is no state W-4, no brackets, no standard deduction, and no personal exemptions in the withholding math.
- 401(k) and 403(b) elective deferrals do not reduce Pennsylvania taxable compensation. The PA Personal Income Tax Guide lists employee retirement-plan contributions as always-taxable PA compensation, so a $10,000 deferral still carries about $307 of state tax. Most national paycheck calculators get this wrong.
- Section 125 cafeteria-plan medical premiums are the opposite: they reduce federal wages, Pennsylvania compensation, and Social Security and Medicare wages.
- Pennsylvania is one of the few states where employees pay unemployment. The employee UC contribution is 0.07% of gross wages with no wage cap, so it continues on every dollar earned.
- Most municipalities levy a local Earned Income Tax under Act 32, commonly around 1%, set by where you live and where you work. Philadelphia sits outside Act 32 and imposes a City Wage Tax of 3.735% on residents and 3.425% on non-residents.
- Many jurisdictions also levy a Local Services Tax, commonly $52 per year, withheld pro-rata across pay periods and rounded down to the nearest cent.
- Bonuses and supplemental wages follow separate federal withholding rules (flat 22% or aggregate method) but the same flat 3.07% state rate. For supplemental pay use the Bonus Tax Calculator and see the Bonus Tax Withholding Guide.
2025 Pennsylvania Paycheck Tax Quick Reference
| Tax | Rate | Wage Base / Threshold | Notes |
|---|---|---|---|
| Federal Income Tax | 10%–37% | No cap | Graduated brackets. Based on W-4 filing status and Publication 15-T percentage method tables. |
| Social Security (OASDI) | 6.2% employee | $176,100 (2025) | Withholding stops at wage base. Employer matches 6.2%. |
| Medicare (HI) | 1.45% employee | No limit | Employer matches 1.45%. |
| Additional Medicare Tax | 0.9% | $200,000 single/HOH; $250,000 MFJ; $125,000 MFS | Employee only. Employer withholds once individual wages exceed $200,000. |
| PA Personal Income Tax | 3.07% flat | No cap | No brackets, no standard deduction, no state allowance form. |
| PA UC Employee Contribution | 0.07% | No cap | 70 cents per $1,000 of gross wages. Applies 2023 and thereafter. |
| Local Earned Income Tax | Varies (commonly ~1%) | No cap | Act 32. Set by resident municipality and school district; PSD codes on Form CLGS-32-6. |
| Philadelphia Wage Tax | 3.735% resident / 3.425% non-resident | No cap | Replaces the Act 32 EIT for Philadelphia. Currently published City rate. |
| Local Services Tax | Flat $ (commonly $52/yr) | $12,000 low-income exemption | Pro-rata per payroll period when combined rate exceeds $10, rounded down to the cent. |
How This Calculator Works
Hourly Mode: Gross Pay Per Period
Gross pay per period equals the hourly rate multiplied by hours worked per week, then scaled to the pay period. For biweekly pay: hourly rate × hours per week × 2. For weekly: hourly rate × hours per week. For semi-monthly and monthly: hourly rate × hours per week × (52 ÷ periods per year).
Salary Mode: Gross Pay Per Period
Gross pay per period equals annual salary divided by the number of pay periods per year. Weekly: ÷ 52. Biweekly: ÷ 26. Semi-monthly: ÷ 24. Monthly: ÷ 12.
Three Different Wage Bases
Pennsylvania is unusual because a single paycheck runs three different taxable wage bases at once. Getting these right is the whole point of a state-specific calculator:
- Federal taxable wages = gross − Section 125 medical − 401(k) elective deferral.
- FICA wages (Social Security and Medicare) = gross − Section 125 medical. The 401(k) deferral does not reduce FICA.
- Pennsylvania taxable compensation = gross − Section 125 medical. The 401(k) deferral does not reduce PA compensation either.
The Pennsylvania Personal Income Tax Guide lists "employee contributions to an eligible Pennsylvania retirement plan and contributions to a qualified deferred compensation plan" among the income items always taxable as Pennsylvania compensation. Separately, Pennsylvania permits employees to exclude qualified Section 125 cafeteria plan payments for programs covering hospitalization, sickness, disability, or death. That is why the two pre-tax fields in this calculator behave differently.
Social Security Tax
Social Security is 6.2% of annualized FICA wages up to the $176,100 wage base for 2025. The per-period amount is the annualized Social Security tax divided by pay periods. This calculator does not track year-to-date cumulative wages, so for workers approaching the wage base, actual withholding will stop mid-year once the limit is reached.
Medicare Tax
Standard Medicare is 1.45% on all FICA wages. The calculator adds the 0.9% Additional Medicare Tax on annualized FICA wages above $200,000, matching the employer withholding rule in IRS Topic 560: withholding starts once wages exceed $200,000 in a calendar year regardless of filing status. Final liability on Form 8959 uses filing-status thresholds ($200,000 single/HOH, $250,000 MFJ, $125,000 MFS).
Federal Income Tax Withholding
The calculator follows IRS Publication 15-T Worksheet 1A (Percentage Method for Automated Payroll Systems) for 2025:
- Annualize the per-period gross pay (multiply by pay periods per year).
- Subtract annualized Section 125 medical premiums and 401(k) elective deferrals to get federal taxable wages.
- Add Step 4a other income; subtract Step 4b additional deductions.
- Subtract the line 1g allowance: $12,900 for married filing jointly or $8,600 otherwise. If the W-4 Step 2 box is checked, subtract $0 instead. The result is the Adjusted Annual Wage Amount.
- Apply the Annual Percentage Method table for the W-4 filing status - the STANDARD schedule, or the Step 2 Checkbox schedule when the Step 2 box is checked - then divide the tentative annual withholding by pay periods.
- Subtract Step 3 dependent credits divided by pay periods, then add Step 4c extra withholding.
Pennsylvania Income Tax
Pennsylvania Personal Income Tax is a flat 3.07% of Pennsylvania taxable compensation. Because the rate is flat there are no brackets to walk and no allowances to apply, so the state line is simply PA taxable compensation multiplied by 0.0307. The same rate applies to bonuses and supplemental wages, which is why a Pennsylvania bonus has a simpler state calculation than a bonus in a graduated state.
Pennsylvania Unemployment Contribution
The employee UC contribution is 0.07% of gross wages, which the Department of Labor and Industry describes as 70 cents per $1,000. This calculator applies it to total gross wages, with no cap, matching the Department's statement that employee contributions are based on total gross wages and are not limited to the employer taxable wage base.
Local Earned Income Tax and Local Services Tax
The local EIT rate you enter is applied to Pennsylvania taxable compensation. Under Act 32, your rate depends on the PSD codes for where you live and where you work; employers generally withhold the higher of the resident rate or the workplace non-resident rate. If you live in or work in Philadelphia, enter the Philadelphia Wage Tax rate instead and leave the Local Services Tax at zero, because Philadelphia sits outside Act 32.
The Local Services Tax is a flat dollar amount rather than a percentage. Where the combined municipal and school rate exceeds $10, DCED requires it to be collected pro-rata across the employer's payroll periods, rounded down to the nearest one-hundredth of a dollar. This calculator reproduces that rule exactly: a $52 tax withholds $1.00 per week or $4.33 per month, matching DCED's own published example.
Real-World Paycheck Scenarios
Scenario 1: Salaried Single Filer in Allegheny County
Dana earns $55,000 per year at a logistics firm outside Pittsburgh, paid biweekly, filing single with a standard W-4. Her municipality levies a 1% resident EIT and a $52 Local Services Tax. She has no 401(k) deferral and no cafeteria-plan premiums. Her biweekly gross is $55,000 ÷ 26 = $2,115.38.
Federal withholding detail: Worksheet 1A subtracts the $8,600 line 1g allowance (W-4 Step 2 box not checked) from the $55,000 annualized gross, giving an Adjusted Annual Wage Amount of $46,400. The STANDARD single schedule applies $1,192.50 plus 12% of the amount over $18,325 ($28,075 × 12% = $3,369.00) = $4,561.50 annual, divided by 26 periods = $175.44. The state line is $55,000 × 3.07% = $1,688.50 annually. Note that the four Pennsylvania-specific lines together (state, UC, EIT, LST) total $89.57 per period, roughly 4.2% of gross.
Scenario 2: The 401(k) Trap That Most Calculators Miss
Marcus earns $80,000 per year in Harrisburg, paid biweekly, filing single. He defers $400 per period to a traditional 401(k) ($10,400 per year) and pays $100 per period in Section 125 medical premiums ($2,600 per year). A generic national paycheck calculator would subtract both from every wage base. Pennsylvania does not work that way.
Three different bases in one paycheck. Marcus's federal wages are $67,000 (gross less both deductions). His FICA and Pennsylvania wages are both $77,400 (gross less the Section 125 premium only), because the 401(k) deferral reduces neither. If Pennsylvania followed the federal rule, his state tax would be $67,000 × 3.07% = $2,056.90 instead of $2,376.18. The 401(k) deferral costs him $319.28 per year in Pennsylvania tax that a federal-only calculator would silently omit. Pennsylvania taxes the contribution going in, and generally does not tax the qualifying distribution coming out; see the Pension and Annuity Income Tax Guide for how retirement income is treated at the back end.
Practitioner Insight
The Pennsylvania mistake we correct most often is not on the return at all, it is a misread pay stub. A client moves from a neighboring state, opens a 401(k) at a new Pennsylvania employer, and expects the deferral to cut every tax line. It cuts the federal line only. When they compare the stub to a national paycheck calculator, the state figure never matches, and they assume the employer made an error. The employer is right. Pennsylvania taxes the contribution on the way in. The consolation is real, though rarely explained: because the contribution was already taxed by Pennsylvania, the qualifying distribution in retirement is generally not taxed again by Pennsylvania.
The second recurring issue is Act 32 residency. A worker who lives in one municipality and works in another has two candidate rates, and employers withhold based on the PSD codes on the Residency Certification Form. New hires who leave that form blank, or who move mid-year without resubmitting it, routinely have the wrong local rate withheld for months. It surfaces at filing time as a local balance due or an unexpected refund from a tax collector they have never heard of. We ask every new Pennsylvania client for their current CLGS-32-6 before we look at anything else.
A third one worth flagging: employees who work in a Local Services Tax jurisdiction and earn under $12,000 of earned income there. Where the combined LST rate exceeds $10, the political subdivision must exempt them, but the exemption is not automatic. It requires filing an upfront exemption certificate with the employer. Low-wage and part-year workers routinely pay a tax they were entitled to skip, and they can request a refund. It is a small dollar amount, but it is the client's money.
When This Calculator Gives a Less Accurate Estimate
- You do not know your exact local rate: Act 32 rates vary by municipality and school district, and the withheld rate depends on both your resident PSD code and your workplace PSD code. The calculator applies whatever rate you enter. Look up the authoritative figure on the DCED Official Tax Register before relying on the local line.
- Philadelphia residents and workers: Philadelphia is outside Act 32 and levies its own Wage Tax at a different rate for residents and non-residents. Enter the Wage Tax rate in the local field and leave the Local Services Tax at zero. The City has also been phasing rates down, so confirm the current rate on phila.gov.
- Reciprocal-state commuters: Pennsylvania has reciprocity agreements with several neighboring states. If you live in a reciprocal state and work in Pennsylvania, your employer may withhold your home state's income tax instead of Pennsylvania's 3.07%. This calculator assumes Pennsylvania resident withholding.
- Roth 401(k) contributions: A Roth deferral is a post-tax deduction. It reduces neither federal nor Pennsylvania taxable wages. Do not enter it in the 401(k) field, which models traditional pre-tax deferrals only.
- Non-medical cafeteria benefits: The Section 125 field models qualified medical premiums, which Pennsylvania excludes. Dependent care FSA and other cafeteria elections follow different Pennsylvania rules and may still be Pennsylvania compensation.
- Year-to-date tracking and variable hours: The calculator annualizes a single consistent pay period. Social Security stops mid-year at the wage base, overtime and seasonal hours vary, and bonuses use supplemental federal withholding rules.
Frequently Asked Questions
What is the Pennsylvania state income tax withholding rate?
Pennsylvania levies a flat personal income tax of 3.07% on taxable compensation. Employers withhold 3.07% from all compensation paid to residents and to nonresidents for work performed in Pennsylvania. Because the rate is flat, Pennsylvania has no state withholding allowance form comparable to the federal W-4, no brackets, no standard deduction, and no personal exemptions in the withholding math. The same 3.07% applies to regular wages, bonuses, and other supplemental compensation.
Do 401(k) contributions reduce Pennsylvania state income tax?
No. This is the single biggest difference between federal and Pennsylvania paycheck math. Employee elective deferrals to a 401(k), 403(b), or other qualified deferred compensation plan reduce wages subject to federal income tax withholding, but the Pennsylvania Personal Income Tax Guide lists employee contributions to an eligible Pennsylvania retirement plan among the income items always taxable as Pennsylvania compensation. A worker deferring $10,000 saves federal tax on that amount but still pays roughly $307 of Pennsylvania tax on it. The trade-off is that Pennsylvania generally does not tax the qualifying retirement distribution coming back out.
Do Pennsylvania employees pay unemployment tax?
Yes. Pennsylvania is one of the few states where employees, not only employers, contribute to unemployment compensation. The employee UC withholding rate is 0.07% of gross wages, which the Department of Labor and Industry describes as 70 cents per $1,000. It has applied since 2023. There is no cap on the gross wages subject to employee withholding, so it continues on every dollar earned all year. It appears as its own small line on a Pennsylvania pay stub, separate from the much larger employer UC contribution.
What is the local Earned Income Tax in Pennsylvania?
Most Pennsylvania municipalities and school districts levy a local Earned Income Tax, administered under Act 32 through regional tax collection districts. Rates vary by the municipality where you live and where you work, identified by PSD codes on Form CLGS-32-6, the Residency Certification Form. Combined resident rates are commonly around 1%, but they differ by jurisdiction, so two workers with identical pay can take home different amounts. Look up your exact rate on the DCED Official Tax Register. Philadelphia sits outside Act 32 and imposes its own Wage Tax instead.
What is the Philadelphia Wage Tax?
Philadelphia imposes a City Wage Tax rather than the Act 32 local Earned Income Tax. The rate currently published by the City of Philadelphia is 3.735% for residents and 3.425% for non-residents who work in Philadelphia. All employed Philadelphia residents owe the Wage Tax regardless of where they work, and non-residents owe it on work performed in Philadelphia. Because Philadelphia is outside Act 32, Philadelphia residents should enter the Wage Tax rate in the local rate field of this calculator and leave the Local Services Tax at zero. The City has been phasing its rates down, so confirm the current rate before filing.
What is the Local Services Tax in Pennsylvania?
The Local Services Tax is a flat dollar amount, not a percentage, levied by many Pennsylvania municipalities and school districts on people who work in the jurisdiction. The combined rate is commonly $52 per year. Where the combined rate exceeds $10 it must be collected in pro-rata installments across the employer's payroll periods, rounded down to the nearest cent, so a $52 tax is withheld at $1.00 per week or $4.33 per month. Political subdivisions levying more than $10 must exempt workers whose total earned income and net profits in that subdivision is under $12,000, but the exemption requires filing an upfront exemption certificate with the employer.
Does Pennsylvania tax health insurance premiums paid through a cafeteria plan?
No. Pennsylvania allows employees to exclude from taxable compensation qualified payments to an IRC Section 125 cafeteria plan for programs covering hospitalization, sickness, disability, or death. Employer-sponsored medical premiums paid through a Section 125 plan therefore reduce federal taxable wages, Pennsylvania taxable compensation, and Social Security and Medicare wages. This is the opposite of the 401(k) treatment, where the deferral reduces federal wages but not Pennsylvania compensation. Dependent care and other non-medical cafeteria elections follow different rules.
What is the Social Security wage base for 2025?
The Social Security wage base for 2025 is $176,100. Social Security tax at 6.2% applies to wages up to this amount, and withholding stops once cumulative wages for the year exceed it. Medicare has no wage base limit and continues at 1.45% on all wages. Employers withhold an additional 0.9% Medicare surtax on wages above $200,000 regardless of filing status; final liability thresholds are $250,000 for married filing jointly and $125,000 for married filing separately. The Pennsylvania employee UC contribution of 0.07% also has no wage cap.
How does a Pennsylvania paycheck compare to a no-income-tax state?
At the same gross salary, a Pennsylvania worker takes home less than a worker in Texas or Florida, which levy no state income tax. The gap is the flat 3.07% state line plus the 0.07% unemployment contribution plus any local Earned Income Tax, commonly around 1%. On a $55,000 salary that is roughly $2,300 per year, or about $89 per biweekly paycheck. Compared with a graduated high-tax state, however, Pennsylvania's flat rate is favorable at higher incomes because the state rate never rises with earnings. Compare directly with the Texas, Florida, California, and New York calculators.
Why does my actual Pennsylvania paycheck differ from this estimate?
This calculator estimates standard federal withholding, FICA, the flat 3.07% Pennsylvania tax, the 0.07% employee UC contribution, and any local rate and Local Services Tax you enter. Actual paychecks also reflect post-tax deductions such as Roth 401(k) contributions and garnishments, year-to-date cumulative Social Security tracking, employer-specific payroll adjustments, mid-year W-4 changes, and the precise Act 32 resident-versus-workplace rate comparison based on your PSD codes. The calculator assumes consistent pay each period.
What To Do Next
Start by confirming two Pennsylvania-specific numbers before you trust any paycheck estimate. First, pull your most recent pay stub and check whether the state line equals 3.07% of your gross less only your Section 125 medical premium. If your employer is subtracting your 401(k) deferral from the state base too, the state withholding is understated and you will owe at filing. Second, find your local EIT rate from the DCED Official Tax Register using the municipality where you live and where you work, and confirm it matches the rate on your stub.
If the local rate is wrong, the fix is Form CLGS-32-6, the Residency Certification Form. Submit a corrected copy to your employer. If you work in a Local Services Tax jurisdiction and expect under $12,000 of earned income there this year, file the upfront exemption certificate rather than waiting to request a refund.
For the full Pennsylvania employer picture, including the $10,000 employer UC wage base and Act 32 filing mechanics, read the Pennsylvania Payroll Taxes guide. To understand how withholding connects to your year-end liability, see How Payroll Taxes Work and W-4 Withholding Explained. To decode every line on the stub itself, use How to Read a Pay Stub. If you also have self-employment income, the 1099 Tax Calculator estimates the federal side including self-employment tax.
Sources & Editorial Disclosure
- PA Department of Revenue, Personal Income Tax (flat 3.07% rate; Section 125 cafeteria plan exclusion; no standard deduction or personal exemption)
- PA Personal Income Tax Guide, Gross Compensation (employee retirement-plan contributions are always taxable PA compensation)
- PA Department of Labor and Industry, UC Employee Withholding (0.07% for 2023 and thereafter; no cap on gross wages)
- PA Department of Community and Economic Development, Local Services Tax (pro-rata collection, round down to the nearest cent, $12,000 low-income exemption)
- City of Philadelphia, Wage Tax (3.735% resident / 3.425% non-resident, currently published rate)
- IRS Publication 15-T (2025), Employer's Tax Guide to Federal Income Tax Withholding
- IRS Topic 751, Social Security and Medicare Withholding Rates
- IRS Topic 560, Additional Medicare Tax
- Social Security Administration, 2025 Wage Base ($176,100)
- Authored by Munib Ur Rehman · Reviewed by Nausheen Shahid, LMN Tax Inc. Not affiliated with the IRS or the Commonwealth of Pennsylvania. For informational purposes only.