Pennsylvania State Income Tax: 2026 Rate, EIT & Rules
Pennsylvania keeps it simple: a flat 3.07% income tax with no brackets, no standard deduction, and no personal exemptions. But the simplicity is deceptive — most Pennsylvanians also owe a local Earned Income Tax (EIT) that can add ~1% on top, and the state taxes eight separate classes of income under different rules.
This guide covers the 2026 PA flat rate, how the local EIT works, and what the lack of deductions means for your bill — plus a free Pennsylvania income tax calculator with a local-tax field.
The 2026 PA Rate: Flat 3.07%
Pennsylvania taxes personal income at a flat 3.07% — the same rate whether you earn $30,000 or $3,000,000. There are no tax brackets to climb and no benefit to “staying under” a threshold.
What PA doesn’t have matters just as much:
- No standard deduction. Your full income is taxable from dollar one.
- No personal exemptions. Dependents don’t reduce your PA taxable income.
- Eight income classes. PA sorts income into eight buckets (compensation, interest, dividends, business profits, capital gains, rents, estates, gambling). Losses in one class generally can’t offset gains in another — a quirk that surprises new residents.
The Local Earned Income Tax (EIT)
Here’s the part most calculators miss: nearly every PA municipality and school district levies a local Earned Income Tax, typically totaling around 1% (often split between municipality and school district). Philadelphia is the outlier with a much higher ~3.7% wage tax.
Key EIT facts:
- It’s withheld by your employer along with the state tax, so you may never notice it as a separate line.
- The rate depends on where you live, not where you work (with credit rules preventing double taxation).
- Enter your local rate in the Pennsylvania income tax calculator to see the combined state-plus-local hit.
Worked Example: $75,000 Salary
- Gross income: $75,000
- PA state tax (3.07%): $2,302.50
- Local EIT (1.0%): $750.00
- Combined: $3,052.50 (4.07% effective)
That combined 4.07% is the number to compare against other states — the “flat 3.07%” headline understates what most residents actually pay.
Frequently Asked Questions
Why doesn’t PA have a standard deduction?
Pennsylvania’s constitution requires uniform taxation, which the state implements as a flat rate on broad income classes without deductions or exemptions. It’s one of the simplest — and least flexible — state tax codes.
What is the EIT and do I have to pay it?
The Earned Income Tax is a local tax on wages levied by your municipality and school district, averaging ~1% combined. If you live in PA, you almost certainly owe it; it’s usually withheld automatically.
Does PA tax retirement income?
Pennsylvania is unusually generous here: it fully exempts pension income, 401(k)/IRA distributions after age 59½, and Social Security benefits. It’s one of the most retiree-friendly states for income tax.
How do I estimate my total PA tax?
Use the free Pennsylvania income tax calculator — enter your income and local EIT rate for the combined figure. Comparing neighbors? Try the New York income tax calculator next.
Estimates only — not tax advice. Verify with the PA Department of Revenue or a tax professional.
