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HEAD-TO-HEAD TAX COMPARISON · 2026

COUNTRY A Pennsylvania VS COUNTRY B Wisconsin

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

Daniel · CountryTaxCalc Updated August 2026 Tax Comparison 2026
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OVERVIEW
Pennsylvania's flat 3.07% income tax rate beats Wisconsin's 4-bracket progressive system at every income level shown, and the gap widens sharply as income rises because Wisconsin's 5.3% rate applies to almost all income between $50,480 and $323,290. At $100,000 income, Pennsylvania's state tax bill ($2,576) is $1,284/year lower than Wisconsin's ($3,860), and the difference grows to nearly $14,000/year at $500,000. Wisconsin doesn't offer relief on property tax either — its average effective rate of roughly 1.85% is the 3rd-highest in the nation, even higher than Pennsylvania's already-elevated roughly 1.49%, so Wisconsin homeowners face the double burden of higher income tax and higher property tax. Neither state has a local income tax that applies broadly, though Philadelphia residents pay an additional 3.79% city wage tax on top of Pennsylvania's state rate. On retirement income, Pennsylvania is significantly more generous: it fully exempts Social Security, pensions, and 401(k)/IRA withdrawals at any age, while Wisconsin exempts only Social Security and taxes all other retirement income in full at its progressive rates with no age-based relief.
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
Wisconsin
TAX RATE
3.5-7.65%
4-Bracket Progressive
4-bracket progressive tax topping out at 7.65% above $323,290; no local income tax anywhere
TYPICAL ANNUAL DIFFERENCE
Moving from Wisconsin → Pennsylvania at $100,000
$1,284
That's $107/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
🧀 WI TAX
SAVINGS
10-YEAR
$50,000
$1,041
$1,359
$318
$3,180
$75,000
$1,808
$2,535
$727
$7,270
$100,000
$2,576
$3,860
$1,284
$12,840
$150,000
$4,111
$6,510
$2,399
$23,990
$250,000
$7,181
$11,810
$4,629
$46,290
$500,000
$14,856
$28,835
$13,979
$139,790
💡

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🔔

Pennsylvania Pros & Cons

+ PROS
  • Flat 3.07% state income tax beats Wisconsin's progressive rate (topping out at 7.65%) at every income level — saving $318 to $13,979/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
  • Two major lower-cost metros (Philadelphia, Pittsburgh) with strong healthcare, higher-education, and robotics/tech employers
− CONS
  • Average property tax (~1.49%) is still high nationally, though slightly below Wisconsin's ~1.85%
  • 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%) — Wisconsin has none
  • Colder winters and slower job growth than Sun Belt competitors, similar to Wisconsin's climate drawbacks
🧀

Wisconsin Pros & Cons

+ PROS
  • The 7.65% top rate only applies above $323,290 of taxable income, so most residents never reach the top bracket
  • Manufacturing-heavy economy (Harley-Davidson, John Deere, Johnson Controls) offers steady middle-class jobs
  • Social Security is fully exempt from state tax, and Wisconsin has no estate or inheritance tax at all
  • Reciprocity agreements with Minnesota, Illinois, Indiana, and Michigan simplify withholding for cross-border commuters
− CONS
  • Progressive brackets cost $318 to $13,979/year more than Pennsylvania's flat 3.07% at every income level shown, with the gap widening sharply above $100K
  • Average property tax (~1.85%) is the 3rd-highest in the nation — even higher than Pennsylvania's already-elevated ~1.49%
  • Pensions, 401(k), and IRA withdrawals are fully taxable at Wisconsin's progressive rates with no retirement-specific relief, unlike Pennsylvania's full exemption
  • Smaller job market (Milwaukee metro ~1.6M) and harsher winters than Pennsylvania's two larger metro areas
FAQ

Frequently Asked Questions

Is Pennsylvania or Wisconsin cheaper for state income tax?

Pennsylvania is cheaper at every income level. At $100,000, Pennsylvania's flat 3.07% costs $2,576 versus Wisconsin's progressive rate at $3,860 — a $1,284/year difference. At $500,000, the gap grows to $13,979/year, because Wisconsin's 5.3% bracket covers almost the entire $50,480-$323,290 range.

Which state has lower property tax, Pennsylvania or Wisconsin?

Pennsylvania has the lower average effective property tax rate at roughly 1.49%, compared to Wisconsin's roughly 1.85% — the 3rd-highest in the nation. On a $400,000 home, that's about $5,960/year in Pennsylvania versus $7,400/year in Wisconsin, a savings of about $1,440/year that adds to Pennsylvania's income-tax advantage rather than offsetting it.

So which state wins on combined income plus property tax?

Pennsylvania wins outright — it has both the lower income tax and the lower property tax, so there's no trade-off to weigh. At $100,000 income with a $400,000 home, Pennsylvania's combined bill (about $8,536) beats Wisconsin's (about $11,260) by roughly $2,724/year.

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 Wisconsin's $3,860 in state tax alone once you add Philadelphia's local tax, though most Pennsylvania residents outside Philadelphia pay only the 3.07% state rate with no city add-on.

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. Wisconsin exempts only Social Security and taxes pensions, 401(k), and IRA withdrawals in full at its progressive rates with no age-based relief. Pennsylvania is meaningfully more retirement-friendly for anyone with private pension or retirement-account income.

How much would I save moving from Wisconsin to Pennsylvania?

At $100,000 income, moving from Wisconsin to Pennsylvania could save about $1,284/year in state income tax, plus roughly $1,440/year in lower property tax on a $400,000 home — about $2,724/year combined. At $250,000 income, the income-tax savings alone grow to about $4,629/year.

Does Pennsylvania or Wisconsin 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. Wisconsin 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.

Why is Wisconsin's top tax bracket so high compared to Pennsylvania?

Wisconsin's 7.65% top rate only kicks in above $323,290 of taxable income — a high threshold that few residents reach — but the 5.3% bracket that applies from $50,480 to $323,290 covers most middle- and upper-middle-income earners, which is why Wisconsin costs more than Pennsylvania's flat 3.07% at every income level in this comparison, not just for top earners.
From the brief
NL27%new 2027 rate, down from 30%
DK65.4kkr/mo threshold, cut from 78k
MT1940snon-dom regime unchanged since
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