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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
Calculate your take-home → See all comparisons →
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 ($3,070) is $1,626/year lower than Wisconsin's ($4,696), and the difference grows to nearly $14,478/year at $500,000. Wisconsin doesn't offer relief on property tax either — its average effective rate of roughly 1.32% is among the higher property-tax states nationally, and still edges out Pennsylvania's roughly 1.26%, so Wisconsin homeowners face the double burden of higher income tax and slightly 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
$1,626

That's $136/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
$1,535
$2,064
$529
$5,290
$75,000
$2,303
$3,371
$1,068
$10,680
$100,000
$3,070
$4,696
$1,626
$16,260
$150,000
$4,605
$7,346
$2,741
$27,410
$250,000
$7,675
$12,646
$4,971
$49,710
$500,000
$15,350
$29,828
$14,478
$144,780
💡

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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 $529 to $14,478/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 (~1.26%) is still above the national average, though slightly below Wisconsin's ~1.32%
  • 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 $529 to $14,478/year more than Pennsylvania's flat 3.07% at every income level shown, with the gap widening sharply above $100K
  • Average property tax (~1.32%) is among the higher property-tax states nationally — still slightly above Pennsylvania's ~1.26%
  • 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 $3,070 versus Wisconsin's progressive rate at $4,696 — a $1,626/year difference. At $500,000, the gap grows to $14,478/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 1.26%, compared to Wisconsin's roughly 1.32% — both are above the national average, with Wisconsin slightly higher. On a $400,000 home, that's about $5,040/year in Pennsylvania versus $5,280/year in Wisconsin, a savings of about $240/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 $8,110) beats Wisconsin's (about $9,976) by roughly $1,866/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 $6,860 total, well above Wisconsin's $4,696 in state tax alone, 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 $1,626/year in state income tax, plus roughly $240/year in lower property tax on a $400,000 home — about $1,866/year combined. At $250,000 income, the income-tax savings alone grow to about $4,971/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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