Pennsylvania State Income Tax 2026: 3.07% Flat
Pennsylvania has one of the simplest and lowest state income tax rates in the country at a flat 3.07%. This rate has been remarkably stable for decades. For technology professionals, an important nuance is the Philadelphia city wage tax — Philadelphia residents pay a separate city-level wage tax of 3.75% on top of the state rate, making Philadelphia's combined burden significantly higher than the state rate alone would suggest.
Pennsylvania flat income tax (2026): 3.07% × $150,000 = $4,605. Important: Philadelphia residents pay an additional city wage tax of 3.75%, adding ~$5,625 on a $150,000 salary. This brings Philadelphia combined state + city tax to ~$10,230. Pittsburgh and other PA cities outside Philadelphia do not have this additional burden.
At 3.07% flat, Pennsylvania's state income tax is among the lowest of states that do levy income tax — lower than Michigan (4.25%), Colorado (4.4%), Illinois (4.95%), and substantially lower than New York (10.9%) or California (13.3%). On a $150,000 salary, Pennsylvania state income tax is $4,605 — well below the national average for taxed states. The flat structure means the rate is identical at $50,000 or $500,000.
Philadelphia is a notable exception to the state's low tax reputation. Philadelphia levies a city wage tax of 3.75% for residents (3.44% for non-residents working in the city), which is one of the highest city income taxes in the United States. A Philadelphia resident earning $150,000 pays $4,605 in state tax plus approximately $5,625 in city wage tax — a combined total of $10,230, which is comparable to California's burden on the same income. Pittsburgh and other Pennsylvania cities do not levy wage taxes at the same rate, making them far more favorable than Philadelphia from a combined tax perspective.
Pittsburgh has emerged as a secondary tech hub anchored by Carnegie Mellon University, with significant AI research presence and growing startup activity. Outside of Philadelphia, Pennsylvania's 3.07% flat rate is genuinely one of the most favorable income tax environments on the East Coast, particularly compared to neighboring New York (10.9% + NYC local) and New Jersey (top marginal 10.75%).
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Total Comp CalculatorFrequently asked questions: Pennsylvania income tax
What is Pennsylvania's state income tax rate in 2026?
Pennsylvania's flat state income tax rate is 3.07% in 2026. This rate applies uniformly to all income levels and has remained unchanged for many years, making it one of the most stable and predictable state income tax rates in the country.
Do Philadelphia residents pay extra income taxes?
Yes. Philadelphia levies a separate city wage tax of 3.75% for city residents (3.44% for non-residents who work in Philadelphia). This is on top of the 3.07% state rate, bringing the combined state + city income tax to approximately 6.82% for Philadelphia residents — significantly higher than the state rate alone.
How does Pennsylvania compare to neighboring New York and New Jersey?
Pennsylvania's 3.07% state rate is dramatically lower than New York's 10.9% top marginal (plus up to 3.876% NYC local) and New Jersey's 10.75% top marginal. Outside of Philadelphia, Pennsylvania is one of the lowest-tax states on the entire East Coast.
Tax rates shown reflect the best available 2026 information and are provided for informational purposes only. State income tax rates, brackets, and rules change frequently. This page is not tax advice. Consult a qualified tax professional for advice specific to your situation. © CompCalc — compensationcalculator.xyz