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This site is not affiliated with the IRS or any state revenue department. Information is for general educational purposes only and is not tax, legal, or financial advice. State tax brackets and rules change annually. Always confirm current figures with your state's Department of Revenue or a licensed CPA before filing. Sources: state revenue departments, Tax Foundation, IRS Publication 17. Last reviewed April 2026.
Income Tax by State›Pennsylvania
PA
Flat Rate: 3.07%Philadelphia: +3.75% wage taxLast reviewed April 2026

Pennsylvania State Income Tax 2026

Pennsylvania's state income tax is a flat 3.07%, one of the lowest rates in the country. However, most Pennsylvania municipalities levy additional local income taxes. Philadelphia residents face a combined state plus city rate of 6.82%, and most PA workers pay 1-2% to their municipality on top of the state rate.

Pennsylvania 2026 Quick Facts

State income tax typeFlat 3.07%
Personal exemptionNone at state level
Local income taxYes - most municipalities 1-2%, Philadelphia 3.75%
Philadelphia wage tax (residents)3.75%
Philadelphia wage tax (non-residents)3.44% (work in Philadelphia)
Pittsburgh wage tax3.0%
Reciprocity agreementsNew Jersey, Indiana, Maryland, Ohio, Virginia, West Virginia
Social Security taxedNo
Pensions (retired at normal age)Generally exempt
2026 changesNo rate change; flat 3.07% unchanged since 2004

Pennsylvania (state only) Effective Rate Calculator

Standard deduction: $0 applied before tax calculation.

Effective Rate

3.07%

State Tax Due

$2,303

Marginal Bracket

3.07%

State income tax only. Does not include federal income tax, Social Security, Medicare, or local income tax. Calculations are estimates for educational purposes. Verify with a licensed CPA before filing.

Pennsylvania Local Income Tax: Key Cities and Municipalities

LocationLocal Rate (Residents)Combined with State
Philadelphia3.75% wage tax6.82%
Pittsburgh3.0%6.07%
Allentown1.5%4.57%
Erie1.5%4.57%
Reading2.0%5.07%
Scranton3.4%6.47%
Most municipalities1.0-2.0%4.07-5.07%

Pennsylvania has over 2,500 taxing jurisdictions. Most use the Earned Income Tax (EIT) collected by county-level tax collectors. Full local income tax guide.

Pennsylvania Income Tax: FAQs

What is Pennsylvania's income tax rate for 2026?
Pennsylvania has a flat state income tax rate of 3.07% for 2026. This rate applies to all income levels with no graduated brackets. There is no standard deduction, but there are specific exemptions and exclusions.
What is the Philadelphia wage tax?
Philadelphia levies an Earnings Tax (also called the wage tax) of 3.75% for Philadelphia residents and 3.44% for non-residents who work in Philadelphia. This is on top of the 3.07% Pennsylvania state income tax, giving Philadelphia residents a combined rate of 6.82% before federal tax.
Does Pennsylvania have local income taxes beyond Philadelphia?
Yes. Most Pennsylvania municipalities levy an Earned Income Tax (EIT) through a local taxing authority. Rates vary by municipality, typically 1-2%, but can be higher. Pittsburgh levies 3% on residents. In addition, a Local Services Tax of up to $52 per year applies in many municipalities.
Does Pennsylvania tax retirement income?
Pennsylvania has a complex retirement income tax structure. Distributions from employer-sponsored retirement plans (pensions, 401(k), 403(b)) are generally exempt if the taxpayer has reached normal retirement age. Social Security is fully exempt. IRAs may be taxed depending on the nature of contributions.
What is Pennsylvania's reciprocity agreement with New Jersey?
Pennsylvania and New Jersey have a reciprocity agreement: residents of either state who work in the other state only pay income tax to their home state. If you live in New Jersey and work in Pennsylvania, you pay New Jersey income tax only, and vice versa. Employers are required to honor exemption certificates.

Sources: Pennsylvania Department of Revenue (revenue.pa.gov), Philadelphia Department of Revenue, Tax Foundation. Data verified April 2026. Not tax advice.