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HEAD-TO-HEAD TAX COMPARISON · 2026

COUNTRY A Pennsylvania VS COUNTRY B Massachusetts

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

Daniel · CountryTaxCalc Updated August 2026 Tax Comparison 2026
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OVERVIEW
Pennsylvania's lower flat tax rate gives it a decisive and growing income tax advantage over Massachusetts. At $100,000, Pennsylvania residents pay $3,070 versus Massachusetts's $4,780, a $1,710/year edge that widens to $9,430/year at $500,000 as the gap between 3.07% and 5% compounds on larger incomes. Property tax runs the other direction but only modestly: Massachusetts averages 1.00% versus Pennsylvania's 1.26%, a $1,040/year advantage for Massachusetts on a $400,000 home. Combined, a $100,000 earner with a $400,000 home still saves $670/year in Pennsylvania — a modest edge at that income level, but the picture shifts firmly toward Pennsylvania as income rises; at $250,000, Pennsylvania's combined advantage grows to roughly $3,565/year once the income tax gap outweighs Massachusetts's smaller property tax edge. Neither state offers special retirement income exemptions beyond standard federal treatment, and Pennsylvania has no local income tax outside Philadelphia's added 3.79% wage tax.
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
Pennsylvania
TAX RATE
3.07%
Flat Tax

Flat 3.07% (Philadelphia adds 3.79% local wage tax)

🏛️
COUNTRY B
Massachusetts
TAX RATE
5%
Flat Tax + Surtax

5% flat, plus 4% surtax on income over $1 million

TYPICAL ANNUAL DIFFERENCE
Moving from Massachusetts → Pennsylvania at $100,000
$1,710

That's $143/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
🔔 PA TAX
🏛️ MA TAX
SAVINGS
10-YEAR
$50,000
$1,535
$2,280
PA saves $745
$7,450
$75,000
$2,303
$3,530
PA saves $1,227
$12,270
$100,000
$3,070
$4,780
PA saves $1,710
$17,100
$150,000
$4,605
$7,280
PA saves $2,675
$26,750
$250,000
$7,675
$12,280
PA saves $4,605
$46,050
$500,000
$15,350
$24,780
PA saves $9,430
$94,300
💡

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🔔

Pennsylvania Pros & Cons

+ PROS
  • Lower flat rate than Massachusetts (3.07% vs 5%) — wins income tax at every income level, up to $9,430/year at $500K
  • Doesn't tax any retirement income — Social Security, pensions, and 401(k)/IRA withdrawals are all fully exempt
  • Philadelphia and Pittsburgh offer major metro job markets without New England's higher cost of living
  • The income tax gap widens with income, making Pennsylvania increasingly favorable for higher earners
− CONS
  • Higher property tax than Massachusetts (1.26% vs 1.00%), costing $1,040/year more on a $400K home
  • Philadelphia residents pay an additional 3.79% local wage tax with no equivalent anywhere in Massachusetts
  • The combined tax savings at lower incomes (around $100K) is modest once property tax is factored in
  • Older infrastructure and slower population growth than Massachusetts's biotech-driven economy
🏛️

Massachusetts Pros & Cons

+ PROS
  • Lower property tax than Pennsylvania (1.00% vs 1.26%), saving $1,040/year on a $400K home
  • World-class biotech, healthcare, and higher-education job markets (Boston/Cambridge)
  • No local income tax anywhere in Massachusetts, unlike Pennsylvania's Philadelphia wage tax
  • 4% surtax on income over $1 million only affects a small share of residents
− CONS
  • Higher flat rate than Pennsylvania (5% vs 3.07%) — loses income tax at every level, up to $9,430/year at $500K
  • No blanket exemption for retirement income; pensions and 401(k)/IRA withdrawals are taxed at the full 5% rate
  • Property tax advantage shrinks in dollar terms relative to Pennsylvania's income tax disadvantage as income rises
  • Higher overall cost of living, especially housing, in the Boston metro area
FAQ

Frequently Asked Questions

Is Pennsylvania or Massachusetts cheaper for state taxes?

Pennsylvania is cheaper overall for most income levels. Its income tax is $1,710/year lower at $100,000 ($3,070 vs Massachusetts's $4,780), and that gap grows to $9,430/year at $500,000. Massachusetts does have a lower property tax (1.00% vs Pennsylvania's 1.26%), saving $1,040/year on a $400,000 home, which partly offsets Pennsylvania's income tax edge at $100K (net PA saves $670/year) but is overwhelmed by Pennsylvania's growing income tax advantage at higher incomes.

Why is Pennsylvania's tax advantage over Massachusetts smaller at $100,000 than at $250,000?

At $100,000, Pennsylvania's $1,710/year income tax savings is partly offset by Massachusetts's $1,040/year property tax advantage, leaving Pennsylvania $670/year ahead. But because both states use flat rates, the income tax gap grows in dollar terms as income rises — at $250,000, Pennsylvania's income tax edge reaches $4,605/year, easily outweighing the constant $1,040/year property tax gap and pushing the combined advantage to roughly $3,565/year in Pennsylvania's favor.

Does Pennsylvania or Massachusetts tax retirement income?

Pennsylvania is significantly more retirement-friendly: it fully exempts Social Security, pensions, and all 401(k)/IRA withdrawals from state tax. Massachusetts has no such blanket exemption for pensions or retirement account withdrawals, taxing most retirement income at the full 5% flat rate (Social Security itself is not taxed by either state, per federal rules most states follow). For retirees drawing heavily on a 401(k) or pension, Pennsylvania's exemption is a major advantage.

How much lower is Massachusetts's property tax than Pennsylvania's?

Massachusetts averages 1.00% versus Pennsylvania's 1.26% — a modest but real gap. On a $400,000 home, that's $4,000/year in Massachusetts versus $5,040/year in Pennsylvania, saving $1,040/year in Massachusetts. This is one of the few areas where Massachusetts comes out ahead in the comparison, though it isn't enough to offset Pennsylvania's income tax advantage at most income levels.

What is Philadelphia's local wage tax and how does it affect the comparison?

Philadelphia residents pay an additional 3.79% local wage tax on top of Pennsylvania's 3.07% state rate, for a combined 6.86% — actually higher than Massachusetts's flat 5% rate. This applies only within Philadelphia; the rest of Pennsylvania has no local income tax. Philadelphia residents specifically should compare their effective 6.86% rate against Massachusetts's 5% rather than relying on this page's statewide Pennsylvania figures.

Does the Massachusetts millionaire's surtax affect this comparison?

No — the 4% surtax applies only to income over $1 million, well above the $500,000 top income tested in this comparison. A resident earning $1.5 million in Massachusetts would pay 5% on the first $1 million plus 9% (5%+4%) on the remaining $500,000, but that scenario falls outside the income range most readers are comparing here.

At what income does Pennsylvania's advantage over Massachusetts grow the fastest?

Because both states use flat rates (3.07% for Pennsylvania, 5% for Massachusetts), the dollar gap between them scales directly with taxable income — every additional $10,000 earned above the standard deduction widens Pennsylvania's edge by about $193 (the 1.93 percentage-point difference). This is why the combined advantage grows from a modest $670/year at $100K to over $8,300/year at $500K.
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