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HEAD-TO-HEAD TAX COMPARISON · 2026

COUNTRY A Pennsylvania VS COUNTRY B Virginia

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

Daniel · CountryTaxCalc Updated August 2026 Tax Comparison 2026
Calculate your take-home → See all comparisons →
OVERVIEW
Pennsylvania's flat 3.07% income tax rate is far lower than Virginia's top marginal rate of 5.75%, which kicks in on taxable income above just $17,000 — meaning most Virginia earners pay the top rate on the bulk of their income. At $100,000 income, Pennsylvania's state tax bill ($2,576) is $1,991/year lower than Virginia's ($4,567), and the gap widens to nearly $12,700/year at $500,000. But Virginia's average effective property tax rate (~0.82%) is meaningfully lower than Pennsylvania's (~1.49%), enough to flip the combined income-plus-property comparison in Virginia's favor for many homeowners on a $400,000+ home. Virginia has no local income tax anywhere in the state, while Philadelphia residents pay an additional 3.79% city wage tax on top of Pennsylvania's state rate. On retirement income, Pennsylvania fully exempts Social Security, pensions, and 401(k)/IRA withdrawals at any age, while Virginia exempts Social Security and up to $40,000 of military retirement pay, plus an extra $12,000 deduction for residents 65+, but taxes private pensions and 401(k)/IRA withdrawals in full at 5.75%.
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% state rate on all income; Philadelphia residents add 3.79% city wage tax
🏛️
COUNTRY B
Virginia
TAX RATE
2-5.75%
4-Bracket Progressive
Top 5.75% rate starts at just $17,000 of taxable income; no local income tax anywhere
TYPICAL ANNUAL DIFFERENCE
Moving from Virginia → Pennsylvania at $100,000
$1,991
That's $166/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
🏛️ VA TAX
SAVINGS
10-YEAR
$50,000
$1,041
$1,692
$651
$6,510
$75,000
$1,808
$3,129
$1,321
$13,210
$100,000
$2,576
$4,567
$1,991
$19,910
$150,000
$4,111
$7,442
$3,331
$33,310
$250,000
$7,181
$13,192
$6,011
$60,110
$500,000
$14,856
$27,567
$12,711
$127,110
💡

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🔔

Pennsylvania Pros & Cons

+ PROS
  • Flat 3.07% state income tax beats Virginia's progressive rate (topping out at 5.75%) at every income level — saving $651 to $12,711/year
  • Full retirement-income exemption: Social Security, pensions, and 401(k)/IRA withdrawals are all tax-free at the state level, at any age
  • No local income tax outside Philadelphia — most Pennsylvania residents pay only the flat 3.07% state rate with no city add-on
  • Two lower-cost major metros — Philadelphia and Pittsburgh — with strong healthcare, higher-education, and robotics/tech employers
− CONS
  • Significantly higher average property tax (~1.49%) than Virginia (~0.82%) — often erases some or all of PA's income-tax advantage on a $400,000+ home
  • Philadelphia residents pay an additional 3.79% city wage tax, pushing their combined rate to 6.86%
  • Pennsylvania levies an inheritance tax on transfers to non-spouse heirs (4.5%-15%) — Virginia has none
  • Fewer concentrated federal/defense-sector jobs than Virginia's Northern Virginia corridor
🏛️

Virginia Pros & Cons

+ PROS
  • Much lower average property tax (~0.82%) than Pennsylvania (~1.49%) — often flips the combined income-plus-property burden in Virginia's favor
  • No local income tax anywhere in the state, unlike Philadelphia's 3.79% add-on for Pennsylvania residents
  • Military retirement pay is exempt up to $40,000, plus an additional $12,000 deduction for residents 65+, on top of full Social Security exemption
  • Northern Virginia's deep federal, defense, and tech job market (Pentagon, Booz Allen, Northrop Grumman, Amazon HQ2 in Arlington) offers high salaries that can outweigh the tax gap
− CONS
  • Top 5.75% marginal rate starts at just $17,000 of taxable income, so most earners pay the top rate on the majority of their income — costing $651 to $12,711/year more than Pennsylvania
  • Private pensions, 401(k), and IRA withdrawals are fully taxable at 5.75% beyond the age-65+ deduction — Pennsylvania exempts all of these entirely at any age
  • Northern Virginia housing costs rank among the highest in the country, often offsetting the property-tax advantage seen statewide
  • Heavy congestion on I-95, I-66, and the Capital Beltway ranks among the worst in the country
FAQ

Frequently Asked Questions

Is Pennsylvania or Virginia cheaper for state income tax?

Pennsylvania is cheaper at every income level. At $100,000, Pennsylvania's flat 3.07% costs $2,576 versus Virginia's progressive rate at $4,567 — a $1,991/year difference. At $500,000, the gap grows to $12,711/year. Virginia's top 5.75% bracket starts at just $17,000 of taxable income, so most earners are taxed at the top rate on the bulk of their income.

Which state has lower property tax, Pennsylvania or Virginia?

Virginia has the lower average effective property tax rate at roughly 0.82%, compared to Pennsylvania's roughly 1.49% — nearly double. On a $400,000 home, that's about $3,280/year in Virginia versus $5,960/year in Pennsylvania, a savings of about $2,680/year that can outweigh Pennsylvania's income-tax advantage.

So which state actually wins on combined income plus property tax?

It depends on home value. At $100,000 income with a $400,000 home, Virginia's combined bill (about $7,847) is lower than Pennsylvania's (about $8,536), because Virginia's property tax savings outweigh Pennsylvania's income-tax advantage. Renters or owners of lower-value homes will generally see Pennsylvania come out ahead instead.

Does Philadelphia's city wage tax change the comparison?

Yes. Philadelphia residents pay a 3.79% city wage tax on top of the 3.07% state rate — a combined 6.86%. At $100,000 income, that's roughly $6,366 total, still below Virginia's $4,567 in state tax alone once local Philadelphia tax is added on top, though Virginia has no city-level income tax anywhere to compare against.

Does either state tax retirement income like 401(k) and IRA withdrawals?

Pennsylvania fully exempts Social Security, pensions, and 401(k)/IRA withdrawals from state tax at any age. Virginia exempts Social Security and up to $40,000 of military retirement pay, plus gives residents 65+ an additional $12,000 deduction, but taxes private pensions, 401(k), and IRA withdrawals in full at 5.75% beyond that. Pennsylvania is meaningfully more retirement-friendly for non-military retirees.

How much would I save moving from Virginia to Pennsylvania?

At $100,000 income, moving from Virginia to Pennsylvania could save about $1,991/year in state income tax — but Pennsylvania's higher property tax may offset part of that, depending on home value. At $250,000 income, the income-tax savings grow to about $6,011/year, which typically outweighs most property-tax differences for higher earners.

Does Pennsylvania or Virginia have an inheritance or estate tax?

Pennsylvania levies an inheritance tax on transfers to non-spouse heirs: 4.5% for children and grandchildren, 12% for siblings, and 15% for other beneficiaries. Virginia has no estate or inheritance tax at all. This is worth factoring into estate planning, especially for Pennsylvania residents leaving assets to non-spouse relatives.

Is Northern Virginia or Philadelphia/Pittsburgh better for job opportunities?

Northern Virginia has one of the country's deepest federal, defense, and technology job markets — the Pentagon, major government contractors like Booz Allen Hamilton and Northrop Grumman, and Amazon's HQ2 in Arlington all pay salaries that often outweigh Virginia's higher tax rate. Pennsylvania's strengths are Philadelphia (finance, healthcare, pharma) and Pittsburgh (robotics, autonomous vehicles, Carnegie Mellon), typically at a lower cost of living than Northern Virginia.

Why does Virginia's top tax rate apply to so much of my income?

Virginia's four brackets are unusually compressed: 2% up to $3,000, 3% up to $5,000, 5% up to $17,000, and 5.75% above $17,000. Because the top bracket starts at such a low income threshold, the vast majority of a typical earner's income is taxed at 5.75%, effectively functioning much like a near-flat tax for anyone earning above roughly $20,000.
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