Use our Pennsylvania Paycheck Calculator to quickly figure out how much you’ll take home after taxes. Just enter your salary, pay frequency, and deductions to get a detailed breakdown of your gross pay, taxes, and net pay in seconds.
How Your Pennsylvania Paycheck is Calculated
Your paycheck depends on several factors, including your income, tax withholdings, and any benefit deductions. The basic formula used to calculate your take-home pay is:
Gross Pay – (Federal Taxes + State Taxes + Local Taxes + FICA) = Net Pay
Here’s what each term means:
- Gross Pay: Your total income before any taxes or deductions.
- Federal Income Tax: A progressive tax based on IRS tax brackets and your filing status.
- FICA Taxes: Includes Social Security and Medicare taxes, which fund federal programs.
- State Income Tax: Pennsylvania has a flat state income tax rate applied to all taxable income.
- Local Taxes: Many cities, municipalities, and school districts in Pennsylvania charge additional local income taxes.
A Guide to Pennsylvania State Payroll Taxes
Pennsylvania State Income Tax
Pennsylvania uses a flat state income tax system, meaning everyone pays the same percentage of income, regardless of how much they earn. Below are the 2025 tax details for Pennsylvania.
| Tax Type | Tax Rate |
|---|---|
| State Income Tax | 3.07% |
Pennsylvania does not have a standard deduction or personal exemption. Instead, certain tax credits and deductions may apply for specific situations, such as income earned by low-income residents or specific types of expenses.
State-Specific Programs and Withholdings
In addition to state income tax, Pennsylvania requires contributions to state-specific programs:
- State Unemployment Insurance (SUI): Employees contribute 0.07% of their gross wages to the state unemployment compensation fund. Employers also contribute a separate percentage.
- Local Earned Income Tax (EIT): Most municipalities and school districts in Pennsylvania levy an additional income tax, typically ranging from 1% to 3.9%. Your employer withholds this automatically based on your residence or workplace location.
- Philadelphia Wage Tax: Philadelphia residents pay an additional wage tax of about 3.75%, while nonresidents working in the city pay about 3.44%.
Understanding Federal and FICA Taxes
Federal and FICA taxes apply nationwide and form a major part of your paycheck deductions.
- Social Security tax: 6.2% of wages up to $168,600 in 2025
- Medicare tax: 1.45% of all wages, with an extra 0.9% for earnings above $200,000 for single filers
Your federal income tax withholding depends on your income, pay frequency, filing status, and the number of dependents you claim on your W-4 form.
Local Taxes in Pennsylvania
Local income taxes are a major part of payroll deductions in Pennsylvania. Most cities, boroughs, and townships impose an earned income tax (EIT), while some areas also levy a local services tax (LST).
Examples include:
- Philadelphia: Residents pay around 3.75%, and nonresidents working in the city pay around 3.44%.
- Pittsburgh: Residents pay 3%, while nonresidents pay 1%.
- Scranton, Harrisburg, and Allentown: Earned income taxes typically range from 1% to 2%.
These taxes are usually withheld directly by employers, so your pay stub will show both state and local deductions.
Frequently Asked Questions (FAQs) About Pennsylvania Paychecks
What is the minimum wage in Pennsylvania?
Pennsylvania follows the federal minimum wage of $7.25 per hour. There are ongoing discussions about increasing the state minimum wage, but for now, it remains aligned with the federal rate.
How often are paydays in Pennsylvania?
Employers in Pennsylvania must pay employees at least twice per month. Common pay frequencies include bi-weekly and semi-monthly schedules.
What is the Pennsylvania state tax rate for 2025?
The Pennsylvania state income tax rate for 2025 is a flat 3.07% for all income levels.
Are 1099 contractors subject to Pennsylvania taxes?
Yes. Independent contractors and freelancers must pay the 3.07% state income tax and applicable local earned income taxes directly when filing their annual returns. They are also responsible for paying the full amount of FICA taxes as part of the self-employment tax.
What are the overtime laws in Pennsylvania?
Pennsylvania follows federal overtime laws under the Fair Labor Standards Act (FLSA). Nonexempt employees must receive 1.5 times their regular pay rate for hours worked over 40 in a workweek.
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