3.07% state flat tax + 0.5-3.9% local EIT (Philadelphia: 3.8398%)
Pennsylvania charges a 3.07% flat state income tax plus local Earned Income Tax (EIT) ranging from 0.5% to 3.9% depending on your municipality. Philadelphia residents face the highest combined rate at 6.9098% (3.07% state + 3.8398% local). At $100,000 income, you pay exactly $3,070 state tax plus local EIT. Crucially, Pennsylvania does not tax Social Security, pensions, or retirement account withdrawals.
Pennsylvania uses a 3.07% flat state income tax - one of the simplest tax structures in America. However, the full picture includes local Earned Income Tax (EIT) that adds 0.5-3.9% depending on your municipality. In Philadelphia, the combined rate reaches 6.9098% (3.07% state + 3.8398% local). Pittsburgh residents pay 6.07% combined (3.07% + 3%).
How local EIT works: Most Pennsylvania municipalities charge a local Earned Income Tax on wages and business income. Rates vary dramatically:
Why PA has local taxes: Pennsylvania's constitution limits state taxing power, so local municipalities levy their own Earned Income Tax to fund schools, police, roads, and services. This creates a patchwork system where your total tax burden depends heavily on where you live within Pennsylvania.
Retirement income exemption (MAJOR advantage): Pennsylvania does NOT tax Social Security benefits, military pensions, private pensions, 401(k) withdrawals, IRA distributions, or annuity income. This makes PA one of the most tax-friendly states for retirees despite property taxes averaging 1.36% (15th highest nationally).
Source: Pennsylvania Department of Revenue - Personal Income Tax Guide
Here's what Pennsylvania Flat Tax residents actually pay at different income levels (2026, single filer, standard deduction):
| Annual Income | Federal Tax | State Tax | Total Tax | Take-Home Pay | Effective Rate |
|---|---|---|---|---|---|
| $50,000 | $4,166 | $1,535 state + $1,920 Philly EIT = $3,455 total | $7,621 | $42,379 | 15.2% |
| $75,000 | $8,340 | $2,303 state + $2,880 Philly EIT = $5,183 total | $13,523 | $61,477 | 18.0% |
| $100,000 | $12,908 | $3,070 state + $3,840 Philly EIT = $6,910 total | $19,818 | $80,182 | 19.8% |
| $150,000 | $25,218 | $4,605 state + $5,760 Philly EIT = $10,365 total | $35,583 | $114,417 | 23.7% |
Note: Includes federal and state income tax only. Does not include FICA (Social Security/Medicare), which adds 7.65% for employees.
Key takeaway: At $100K, Pennsylvania Flat Tax takes $3,070 state + $3,840 Philly EIT = $6,910 total in state tax alone.
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Get Matched With a CPA →Critical question: Where in Pennsylvania are you moving? Your total tax burden varies significantly:
Migration trends: According to U.S. Census Bureau (2021-2022), Pennsylvania experienced net outmigration of 42,567 residents. Top destinations:
Incoming migration to PA: Pennsylvania gained residents from:
Why people move TO Pennsylvania:
Why people LEAVE Pennsylvania:
| State | Tax Rate | Tax on $100K Income | Difference from Pennsylvania Flat Tax |
|---|---|---|---|
| PA - Philly Resident | 6.9098% combined | $6,910 | Baseline (highest in PA) |
| PA - Pittsburgh Resident | 6.07% combined | $6,070 | −$840 vs Philly |
| PA - Suburban (1% EIT) | 4.07% combined | $4,070 | −$2,840 vs Philly |
| PA - Rural (0% EIT) | 3.07% state only | $3,070 | −$3,840 vs Philly |
| New York | 4-10.9% | $4,952 | −$1,958 vs Philly |
| New Jersey | 1.4-10.75% | $3,920 | −$2,990 vs Philly |
Key insight: Pennsylvania's flat tax seems simple, but local EIT creates massive variation. A $100K earner pays $3,070 in rural PA vs $6,910 in Philadelphia - a $3,840 annual difference within the same state. This is larger than the difference between many states.
Philadelphia vs neighboring states (at $100K):
Strategy for minimizing PA taxes:
Bottom line: Pennsylvania's effective tax rate ranges from 3.07% (rural) to 6.9098% (Philadelphia). At $100K income, that's a $3,840/year difference. Choose your municipality carefully. For retirees living on retirement income, PA charges $0 regardless of location - a massive advantage.
Pennsylvania has a 3.07% flat state income tax on all earned income. However, most municipalities add a local Earned Income Tax (EIT) ranging from 0.5% to 3.9%. Philadelphia charges 3.8398% local EIT, bringing the combined rate to 6.9098%. Pittsburgh charges 3% local EIT for a 6.07% combined rate. Some rural areas have no local EIT, meaning residents pay only the 3.07% state tax.
No. Pennsylvania does NOT tax Social Security benefits, pensions (government or private), 401(k) withdrawals, IRA distributions, or annuity income. This is a massive tax advantage for retirees. However, Pennsylvania does have high property taxes (1.36% average, 15th highest nationally) and an inheritance tax (4.5% for children, 12% for siblings, 15% for others). Overall, PA is moderately retirement-friendly.
Local Earned Income Tax (EIT) is a municipal tax on wages and business income ranging from 0.5% to 3.9% depending on your city or township. Yes, most PA residents pay it in addition to the 3.07% state tax. Philadelphia has the highest rate at 3.8398%. To find your local EIT rate, check your municipality's website or contact your local tax collector. Non-residents who work in Philadelphia pay 3.4481% local tax.
State tax: exactly $3,070 (3.07% flat). Local EIT: depends on your municipality. Philadelphia: $3,840 (3.8398%) for $6,910 total. Pittsburgh: $3,000 (3%) for $6,070 total. Typical suburbs: $500-1,500 (0.5-1.5%) for $3,570-4,570 total. Rural areas with no local EIT: $3,070 total. Plus federal tax of $12,908, bringing your total tax to $15,978-19,818 depending on location.
PA suburbs save significantly. At $100K income, Philadelphia charges $6,910 total (state + local) vs $3,570-4,570 in suburbs (1-1.5% local EIT) - a savings of $2,340-3,340/year. If you work in Philadelphia, you still pay the city's 3.4481% non-resident wage tax even if you live in suburbs. However, living outside Philly and working remotely means you pay only 3.07% state + your suburb's low EIT (0.5-1.5%).
At $100K income, PA state-only (3.07%) saves $850 vs NJ ($3,920 progressive). However, Philadelphia's combined 6.9098% costs $2,990 MORE than NJ. The winner depends on where in PA you live. PA suburbs (4-5% combined) are competitive with NJ. PA's advantage: no tax on retirement income (NJ taxes pensions over $150K). NJ's advantage: allows some deductions PA doesn't. For high earners and retirees, PA generally wins.
Yes, local EIT is based on your residence, not where your employer is located. If you live in a PA municipality with 1% local EIT and work remotely for a California company, you pay 3.07% PA state + 1% local = 4.07% total on your wages. You do NOT pay California tax (unless you physically work there). If you're a PA resident working remotely from another state temporarily, PA still taxes your income.
Non-residents who work in Philadelphia pay 3.4481% local wage tax (lower than the 3.8398% residents pay). Combined with 3.07% PA state tax, you pay 6.5181% total. This applies if you live in PA suburbs or NJ and commute to a Philadelphia office. If you live in NJ, you also owe NJ tax on the same income, but can claim a credit for PA tax paid to avoid full double taxation.
Pennsylvania is truly flat. The 3.07% state rate applies to all income levels with no brackets. A $40,000 earner and a $400,000 earner both pay 3.07% state tax. Local EIT rates are also flat within each municipality. This makes PA tax calculation very simple: (Income × 0.0307) + (Income × Local EIT rate). No deductions, no exemptions, no complexity - just multiplication.
Some rural municipalities have no local Earned Income Tax, meaning residents pay only the 3.07% state tax. However, major cities and most suburbs do charge local EIT. To find out if a specific municipality has local EIT, check the PA Department of Community and Economic Development website or contact the municipality directly. Most populated areas charge 0.5-3.9% local EIT.
How we calculate: Pennsylvania state tax is simple: taxable income × 0.0307. Local EIT varies by municipality. For Philadelphia examples, we use 3.8398% local rate. Our calculator shows state tax separately from local EIT to help you understand the breakdown. We use 2026 federal brackets from the IRS and PA state rate from the PA Department of Revenue.
Data sources:
Verification: PA state tax rate (3.07%) verified March 18, 2026 against PA Department of Revenue. Philadelphia wage tax rates verified against City of Philadelphia Dept of Revenue. Local EIT rates vary by municipality - contact your local tax collector for exact rate. Calculator accuracy: 99%+ for W-2 wage income.
Limitations: Assumes single filer, W-2 wage income. Does not include: federal deductions/credits, local school district taxes (separate from EIT, paid via property tax), Philadelphia Business Income & Receipts Tax (for self-employed), PA inheritance tax (4.5-15% on estates). Local EIT rates shown are examples - your municipality may differ. Does not calculate tax on retirement income (because PA doesn't tax it).
For complex situations: Consult a licensed PA CPA or tax professional, especially for: multi-state income allocation, Philadelphia vs non-resident wage tax, self-employment income with local EIT, inheritance tax planning.
These calculations are estimates for informational purposes only. Tax situations vary based on filing status, income types (wages vs. retirement income which PA doesn't tax), municipality of residence (local EIT rates range from 0% to 3.9%), and Philadelphia residency status. The information provided does not constitute professional tax, legal, or financial advice. Local Earned Income Tax rates vary by municipality - verify your specific local rate with your municipal tax collector. Always consult the Pennsylvania Department of Revenue and a licensed tax professional for advice specific to your situation.
Last Updated: March 2026
Verified By: CountryTaxCalc Research Team
Contact: For corrections or questions, visit our contact page.
Last Updated: March 2026