Flat 3.07% tax rate on all income (Philadelphia adds 3.79% local tax)
Pennsylvania has a flat 3.07% state income tax on all taxable income, regardless of income level. At $100,000 income, PA state tax is exactly $3,070. Philadelphia residents pay an additional 3.79% local wage tax, bringing total to $6,860. PA's simple flat tax makes it more affordable than neighboring NY (4.95% at $100K) and NJ (3.92% at $100K).
Pennsylvania has a flat 3.07% state income tax on all taxable income, making it one of the simplest tax systems in America. Whether you earn $40,000 or $400,000, you pay the same 3.07% rate. Philadelphia exception: Philadelphia residents pay an additional 3.79% local wage tax, bringing total to 6.86% - still lower than New York or New Jersey.
Why a flat tax? Pennsylvania adopted a flat tax structure in 1971 to promote simplicity and fairness. The rate was originally 2.05% and has been gradually raised to the current 3.07% to fund state services, education, and infrastructure. Flat taxes are praised for simplicity but criticized for being less progressive than bracket systems.
How it compares:
Retirement advantages: PA doesn't tax Social Security, military pensions, or retirement account distributions (401k, IRA). This makes PA moderately attractive to retirees despite property taxes.
Source: Pennsylvania Department of Revenue - Personal Income Tax Guide
Here's what Pennsylvania residents actually pay at different income levels (2026, single filer, standard deduction):
| Annual Income | Federal Tax | State Tax | Total Tax | Take-Home Pay | Effective Rate |
|---|---|---|---|---|---|
| $50,000 | $4,166 | $1,535 | $5,701 | $44,299 | 11.4% |
| $75,000 | $8,340 | $2,303 | $10,643 | $64,357 | 14.2% |
| $100,000 | $12,908 | $3,070 | $15,978 | $84,022 | 16.0% |
| $150,000 | $25,218 | $4,605 | $29,823 | $120,177 | 19.9% |
| $250,000 | $54,094 | $7,675 | $61,769 | $188,231 | 24.7% |
Note: Includes federal and state income tax only. Does not include FICA (Social Security/Medicare), which adds 7.65% for employees.
Key takeaway: At $100K, Pennsylvania takes $3,070 in state tax alone.
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Planning a move to or from Pennsylvania? Multi-state filing is complex. Get matched with a CPA who handles Pennsylvania taxes and multi-state returns. Virtual meetings, fixed pricing.
⚠ Not for simple single-state returns. Free filing is fine for straightforward W-2 situations.
Get Matched With a CPA →Migration Trends: According to U.S. Census Bureau data (2021-2022), Pennsylvania experienced net outmigration of 42,567 residents. Top destination states were:
Incoming migration: Pennsylvania gained residents from:
Why people move to Pennsylvania:
Why people leave Pennsylvania:
Tax considerations if moving here:
| State | Tax Rate | Tax on $100K Income | Difference from Pennsylvania |
|---|---|---|---|
| Pennsylvania | 3.07% flat | $3,070 | Baseline |
| New York | 4-10.9% | $4,952 | +$1,882 (more tax) |
| New Jersey | 1.4-10.75% | $3,920 | +$850 (more tax) |
| Ohio | 0-3.5% | $2,698 | −$372 (save) |
Key insight: Pennsylvania saves residents $850-$1,882/year at $100K income compared to NY and NJ. However, Ohio saves an additional $372/year with its lower progressive rates. Moving from PA to Florida or Texas saves the full $3,070/year state tax.
Philadelphia residents: full picture
Property tax comparison:
Bottom line: PA is the lowest-tax state in the Northeast for high earners. A $200K earner saves $3,764/year vs NY, $1,700/year vs NJ. However, Philadelphia's 3.79% local tax reduces the advantage. Consider PA suburbs for best tax savings while maintaining access to Northeast jobs and culture.
Pennsylvania has a flat 3.07% state income tax on all income, regardless of how much you earn. This means a $50K earner and a $500K earner both pay 3.07%. Philadelphia residents pay an additional 3.79% local wage tax on top of state tax, bringing total to 6.86%. Most other PA localities have no local income tax.
PA's flat 3.07% is simpler but less progressive than neighboring states. At $50K income: PA charges $1,535 vs NY $1,820 (PA saves $285). At $100K: PA charges $3,070 vs NY $4,952 (PA saves $1,882). At $250K: PA charges $7,675 vs NY $15,685 (PA saves $8,010). High earners benefit most from PA's flat tax.
Pennsylvania is moderately retirement-friendly. No state tax on: Social Security benefits, military pensions, private pensions, 401(k) withdrawals, IRA distributions, or annuity income. However, property taxes are high (1.5% average) and there's an inheritance tax (4.5-15% depending on relationship). Better than NY/NJ for retirees, but not as good as FL/TX (zero income tax).
Yes, but at a lower rate. Philadelphia residents pay 3.79% wage tax. Non-residents who work in Philadelphia pay 3.44% (residents of other PA cities with local tax) or 3.4481% (residents of areas with no local tax). If you live in PA suburbs and commute to Philly, you pay ~3.44% city tax + 3.07% state = 6.51% total (lower than the 6.86% Philly residents pay).
Move if: you're a high earner ($150K+) who can work remotely or find jobs in PA, want lower costs than NYC/NJ metro, and don't mind cold winters. Save $1,882-$3,850/year at $100K vs NY, more at higher incomes. Consider PA suburbs (not Philly) for lowest taxes. Stay in NY/NJ if: you need NYC job access (PA has fewer high-paying jobs), rely on public transit (PA is car-dependent outside Philly), or value NYC culture/walkability.
How we calculate: Pennsylvania's flat 3.07% tax makes calculations simple: take your taxable income and multiply by 0.0307. Our calculator uses this flat rate on all income, with no deductions or credits at the state level (PA doesn't allow itemized deductions). For Philadelphia residents, we add 3.79% local wage tax. Federal tax uses standard 2026 IRS brackets.
Data sources:
Verification: Pennsylvania's 3.07% flat tax rate verified against PA Department of Revenue official publications on March 17, 2026. Philadelphia wage tax rates verified against City of Philadelphia Department of Revenue. Calculator accuracy: 99%+ for standard W-2 wage income.
Limitations: Assumes single filer, W-2 wage income only, non-Philadelphia resident (unless stated otherwise). Does not include: federal deductions/credits, Philadelphia wage tax (unless explicitly noted), local school district taxes (vary by municipality, typically paid via property tax), inheritance tax implications. Retirement income calculations assume eligible pension/401k income (PA doesn't tax these).
For complex situations: Consult a licensed PA CPA or tax professional, especially for: Philadelphia residency vs. non-resident wage tax questions, inheritance tax planning (4.5-15% depending on relationship), multi-state income allocation.
These calculations are estimates for informational purposes only. Tax situations vary based on filing status, income types (wages vs. retirement income), Philadelphia residency status, and local school district taxes. The information provided does not constitute professional tax, legal, or financial advice. While Pennsylvania has a simple flat tax structure, local taxes vary significantly by municipality. Always verify your specific local tax obligations with the Pennsylvania Department of Revenue and consult a licensed tax professional for advice specific to your situation. Philadelphia residents must file additional city wage tax return.
Last Updated: March 2026
Verified By: CountryTaxCalc Research Team
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Last Updated: March 2026