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HEAD-TO-HEAD TAX COMPARISON · 2026

COUNTRY A New York VS COUNTRY B Pennsylvania

Side-by-side analysis of income tax, effective rates, and take-home pay for New York and Pennsylvania in 2026.

Daniel · CountryTaxCalc Updated October 2026 Income tax verified October 2026 Tax Comparison 2026
Calculate your take-home → See all comparisons →
OVERVIEW
The border state escape. Pennsylvania's 3.07% flat rate is the lowest wage-income tax in the Northeast apart from tax-free New Hampshire—dramatically cheaper than New York City. The 14.8% combined figure (10.9% state + 3.876% city) is the top-bracket rate, which applies only to income above $25 million. At $100,000, New York state plus New York City resident tax comes to $8,036 vs PA $3,070—save $4,966/year. NYC figures on this page are New York City resident tax after the NYC school tax credit. Even Philadelphia's combined 6.8% (3.07% state + 3.735% city wage tax from 1 July 2026) beats NYC. Pennsylvania also exempts Social Security and, after retirement age, pension and 401(k)/IRA distributions from state tax, making it a top destination for NY retirees. Close proximity allows some to maintain NYC ties while saving on taxes.
Section 01

The Big Picture

Top-line rates and effective take-home for a typical earner — including income tax, social contributions, and applicable surcharges.

🗽
COUNTRY A
New York
TAX RATE
10.9%
High Tax State

Progressive + NYC tax

🔔
COUNTRY B
Pennsylvania
TAX RATE
3.07%
Low Flat Tax

Lowest flat tax in Northeast

TYPICAL ANNUAL DIFFERENCE
Moving from New York → Pennsylvania at $100,000
$4,966

That's $414/month back in your pocket

Section 02

Tax Savings by Income Level

Net take-home after all income tax, social contributions, and surcharges — for a single employee with no dependents.

GROSS INCOME
🗽 NY TAX
🔔 PA TAX
SAVINGS
10-YEAR
$50,000
$2,103 (NY state only)
$1,535
PA saves $568
$5,680
$75,000
$3,453 (NY state only)
$2,303
PA saves $1,150
$11,500
$100,000 (NYC)
$8,036 (state + city)
$3,070
PA saves $4,966
$49,660
$100,000 (Philadelphia)
$8,036 (NYC)
$6,805 (state + city)
PA saves $1,231
$12,310
$150,000 (NYC)
$13,290 (state + city)
$4,605
PA saves $8,685
$86,850
$200,000 (NYC)
$18,151 (state + city)
$6,140
PA saves $12,011
$120,110
💡

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🗽

New York Pros & Cons

+ PROS
  • World-class job market (finance, media, tech)
  • Public transit eliminates car costs
  • Cultural capital: Broadway, museums, dining
  • Higher salaries than PA for equivalent roles
− CONS
  • Top combined rate 14.8% (10.9% state above $25M + 3.876% NYC); typical earners pay far less
  • Average rent $3,500/month Manhattan
  • Brutal winters with high heating costs
  • Taxes most private pension and IRA income (first $20,000 excluded from age 59½)
🔔

Pennsylvania Pros & Cons

+ PROS
  • 3.07% flat—lowest wage tax in the Northeast apart from New Hampshire
  • Social Security exempt; pensions and 401(k)/IRA distributions exempt after retirement age
  • Lower cost of living than NYC
  • Easy access to NYC/NJ job markets from eastern PA
− CONS
  • Philly adds 3.735% wage tax (about 6.8% total)
  • Smaller job market than NYC
  • High property taxes in some counties
  • Car needed outside Philadelphia
FAQ

Frequently Asked Questions

How much will I save moving from NYC to Pennsylvania?

At $100,000 NYC income: save $4,966/year moving to PA outside Philly (8.0% → 3.07%). Moving to Philadelphia: save $1,231/year (8.0% → 6.8%). Over 10 years outside Philly: $49,660 saved. PA housing costs are generally lower than the NYC area, but compare local listings and property tax bills before deciding.

Does Pennsylvania tax retirement income?

Largely—PA is one of the better states for retirees. Social Security is never taxable in PA, and pension and 401(k)/IRA distributions are exempt once you are retired and past the plan's retirement age (for IRAs and similar plans, generally age 59½); earlier distributions can be taxable. Military retirement pay is exempt. A retiree with $80K of private pension/IRA income pays $0 PA state tax vs roughly $2,600 in NY state tax (NY excludes the first $20,000 of private pension income from age 59½ and allows an $8,000 standard deduction; government pensions and Social Security are not taxed by NY). This makes PA attractive for NY retirees.

Can I live in PA and commute to NYC?

Possible but difficult. From eastern PA (Allentown, Bethlehem): 90-120 minute commute to Manhattan. Some people do it for the tax savings. Be careful: NYC income tax applies only to NYC residents, but New York State taxes nonresidents on wages for work performed in New York, and PA residents can generally claim a credit for that tax on their PA return (subject to PA's limits). Working remotely from PA for a NYC employer may not avoid New York tax either: under New York's convenience-of-the-employer rule, remote days can still be treated as New York-source income. Get advice on your specific situation.

Is Philadelphia worth it vs suburbs?

Financially, PA suburbs beat Philly. Philadelphia's 3.735% resident wage tax (from 1 July 2026) brings the total to about 6.8%—still better than NYC, but the suburbs at 3.07% plus a local earned income tax are clearly cheaper. However, Philly offers urban amenities, no car needed, and easier NYC access via Amtrak. For lifestyle reasons, some prefer Philly despite higher taxes.

What about upstate New York vs Pennsylvania?

Upstate NY (no city tax) pays ~$4,860 at $100K income vs PA's $3,070—PA still saves $1,790/year. But upstate NY has comparable housing costs to PA and similar lifestyle. The savings are smaller than NYC→PA moves. Choose PA for lowest taxes; choose upstate NY if you have specific job or family ties.
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