Pennsylvania paycheck quick facts
| PA state income tax | 3.07% flat (since 2004) |
|---|---|
| Local Earned Income Tax (most cities) | ~1% (varies 0.5–3%) |
| Philadelphia city wage tax (resident) | 3.75% |
| Philadelphia city wage tax (non-resident worker) | 3.44% |
| PA SUI (employee share) | 0.07% |
| PA standard deduction | None |
| Federal income tax | 10% – 37% (2026 brackets) |
| FICA | 6.2% SS (cap $183,600) + 1.45% Medicare |
How your Pennsylvania paycheck works
Pennsylvania has one of the simplest state tax codes in the country at the state level: a flat 3.07% on wages with no standard deduction and no personal exemption. The complication is the Local Earned Income Tax — every PA municipality charges one, with the rate varying by township, borough, or city. For most areas it's 1%, but Philadelphia is its own animal with a 3.75% city wage tax for residents.
Pennsylvania is also unusual in how it treats retirement contributions: traditional 401(k) deferrals are NOT pre-tax for PA. That means PA collects its 3.07% on your full salary, even though the federal system lets you defer those dollars. The trade-off is that qualified retirement withdrawals are PA-tax-free later. HSA contributions and Section-125 health premiums are pre-tax for PA.
FICA: Social Security and Medicare
Every W-2 employee in the US pays FICA, regardless of state. It has two parts:
- Social Security — 6.2% of wages up to the annual wage base ($183,600 for 2026). Earnings above the cap are not taxed for Social Security.
- Medicare — 1.45% of all wages with no cap. If you earn above $200,000 (single) or $250,000 (married filing jointly), an additional 0.9% Additional Medicare Tax applies to the portion above that threshold.
Your employer pays a matching 6.2% + 1.45% (the Additional Medicare is employee-only). Self-employed workers pay both halves — known as SECA: 12.4% Social Security + 2.9% Medicare.
Federal income tax brackets (2026)
The IRS uses a progressive bracket system. The first dollars you earn are taxed at 10%, the next at 12%, and so on up to 37% for high earners. Your marginal rate is the bracket your last dollar falls into; your effective rate is your total tax divided by gross — almost always lower than your marginal rate.
| Single / MFS | MFJ | Rate |
|---|---|---|
| $0 – $12,150 | $0 – $24,300 | 10% |
| $12,150 – $49,450 | $24,300 – $98,900 | 12% |
| $49,450 – $105,700 | $98,900 – $211,400 | 22% |
| $105,700 – $201,775 | $211,400 – $403,550 | 24% |
| $201,775 – $256,225 | $403,550 – $512,450 | 32% |
| $256,225 – $640,600 | $512,450 – $768,700 | 35% |
| $640,600+ | $768,700+ | 37% |
The 2026 standard deduction reduces taxable income before brackets apply: $15,750 single, $31,500 married filing jointly, $23,625 head of household.
Pre-tax deductions that reduce your taxable income
The biggest lever you control on your paycheck is your pre-tax contributions. These come out of your gross pay before federal income tax is calculated, so every dollar contributed saves you your marginal rate's worth of tax.
- Traditional 401(k) — up to $24,500 for 2026 ($31,000 if 50+). Reduces federal taxable income but not FICA wages.
- HSA (Health Savings Account) — up to $4,400 single / $8,750 family in 2026, only available with a high-deductible health plan. Triple-tax-advantaged: pre-tax going in, tax-free growth, tax-free withdrawals for medical expenses.
- FSA (Flexible Spending Account) — up to $3,400 for 2026. Use-it-or-lose-it (with limited rollover). Pre-tax for both federal income tax and FICA.
- Employer health, dental, and vision premiums — typically pre-tax via a Section 125 cafeteria plan.
How to use this calculator
- Pick Salary or Hourly.
- Enter your annual salary (or wage + hours per period).
- Choose your pay frequency — most US employers pay bi-weekly (26 paychecks/year) or semi-monthly (24 paychecks/year).
- Pick your filing status. It controls the brackets and standard deduction.
- If you have qualifying children under 17, enter the count to claim the Child Tax Credit (up to $2,000 per child).
- Expand Pre-tax deductions if you contribute to 401(k), HSA, FSA, or pay health premiums pre-tax.
The result updates instantly. The "Take-home per paycheck" figure is what should hit your bank account; the breakdown table shows exactly where the rest goes.
Sources
The federal tax constants used here come directly from the 2026 authoritative sources:
- IRS Revenue Procedure 2025-32 — 2026 inflation-adjusted brackets, standard deduction, Child Tax Credit amounts.
- SSA Cost-of-Living Adjustment announcement — 2026 Social Security wage base ($184,500).
- IRS Publication 15-T — Federal Income Tax Withholding Methods, including Additional Medicare Tax thresholds.
- IRS Form W-4 — 2020+ five-step withholding worksheet referenced for filing-status and dependent inputs.
Calculator is provided for estimation only and does not constitute tax advice. For tax filing, consult the IRS forms above or a licensed tax professional.
Philadelphia vs. the rest of PA
If you live or work in Philadelphia, your taxes change substantially:
- Philadelphia residents pay a 3.75% city wage tax on top of the 3.07% PA state tax — totalling ~6.82% in combined state + city tax. This applies to wages earned anywhere, not just inside Philadelphia.
- Non-residents who work in Philadelphia pay a 3.44% wage tax on their Philadelphia-source wages.
- Other PA municipalities charge a Local EIT, most commonly 1%, on wages earned by residents — regardless of where you work. Your employer typically withholds this automatically.
Use the local tax dropdown in the calculator above to pick your situation.
How to increase your Pennsylvania take-home pay
- Max your HSA. It's the most powerful PA pre-tax account because it skips federal tax, PA tax, AND FICA.
- Use a Section-125 plan for health, dental, and vision premiums. Pre-tax for federal, PA, and FICA — Pennsylvania is one of the few states that consistently recognizes Section 125.
- Don't skip the 401(k) just because PA taxes it now. The federal savings (at 22–24% bracket) plus the tax-free PA withdrawal later usually still make traditional 401(k) the right call for high earners.
- If you can choose your work location, working outside Philadelphia (or moving outside the city) saves 3.4–3.75% — a six-figure earner can keep $3,400–$5,600 more per year by not paying the Philadelphia wage tax.
Compare with other states: California, Florida, Texas.