Pennsylvania Paycheck Calculator

Pennsylvania Income Tax Rate

Pennsylvania taxes wage income at a flat statewide rate, so your marginal state rate doesn’t rise with higher earnings. Employers start from gross pay, subtract pre-tax benefits traditional 401(k), Section 125 health premiums, HSA/FSA, and eligible commuter plans to determine taxable wages. Payroll then withholds federal income tax, FICA, and Pennsylvania state income tax using your PA-W4 and pay frequency. Supplemental wages (bonuses/commissions) follow federal percentage or aggregate methods, with state withholding applied at the same flat rate. Local Earned Income Taxes (EIT) from municipalities or school districts may also be withheld (see below), appearing as separate lines on your pay stub.

Pennsylvania Median Household Income

Pennsylvania’s median household income has steadily increased, supported by healthcare, education, logistics, life sciences, manufacturing, professional services, and energy. Post-pandemic labor tightness helped push nominal earnings higher across Philadelphia, Pittsburgh, the Lehigh Valley, Central PA, and growing suburban corridors. The values below are nominal, directional benchmarks useful for budgeting and offer comparisons. For purchasing power, consider “real” (inflation-adjusted) dollars and local costs such as housing, transportation, childcare, and insurance, which vary widely by county. Household size and employer benefits (health coverage, retirement match, HSA contributions) materially affect take-home value.

Pennsylvania Federal Insurance Contributions Act (FICA)

FICA applies uniformly in Pennsylvania. Employees pay 6.2% Social Security on wages up to the federal wage base (matched by the employer) and 1.45% Medicare on all wages (also matched). High earners owe an additional 0.9% Medicare surtax on wages above federal thresholds; employers do not match the surtax. Traditional 401(k) reduces income-tax wages but not FICA; Section 125 health premiums typically reduce both income-tax and FICA wages. Pennsylvania pay stubs may also show state-specific items such as local EIT and, when applicable, small employee unemployment contributions these are separate from FICA and the flat state income tax.

Pennsylvania Number of Cities with Local Income Taxes

Pennsylvania has extensive local Earned Income Taxes (EIT) administered by municipalities and school districts. Rates are set locally and often apply to residents and to nonresidents working in the jurisdiction. Confirm residence, work location, and any reciprocal provisions with payroll.

How Your Pennsylvania Paycheck Works

Your paycheck starts with gross wages. Payroll subtracts pre-tax benefits traditional 401(k), HSA/FSA, Section 125 health premiums, and commuter benefits to reach taxable wages. Withholding then includes federal income tax (W-4), FICA (Social Security and Medicare), Pennsylvania state income tax (PA-W4), and any applicable local Earned Income Tax and school district tax. Post-tax deductions Roth 401(k), garnishments, union dues, and charitable gifts occur after taxes and do not reduce taxable wages. Pay frequency (weekly, biweekly, semimonthly, monthly) changes cash-flow timing but not annual tax owed; review stubs after raises, life events, or benefit changes to keep withholding aligned.

Pennsylvania Wage and Hour Laws: Overtime, Pay Frequency

Overtime: Pennsylvania follows FLSA most non-exempt employees earn 1.5× their regular rate for hours over 40 in a workweek; exemptions apply based on duties and salary thresholds.
Pay frequency: Employers must set regular paydays and pay on consistent intervals; biweekly or semimonthly schedules are common. State rules also address timely final pay and itemized wage statements confirm specifics in employer policies and agreements.

FAQs

How do I use the Pennsylvania Paycheck Calculator?

Enter gross pay, schedule, W-4/PA-W4 details, pre-tax benefits, and deductions to estimate federal, FICA, state, and local withholding.

Why is there a local tax on my paycheck?

Many Pennsylvania municipalities and school districts levy Earned Income Taxes (EIT) that employers withhold separately from state tax.

What is Pennsylvania’s state income tax rate?

It’s a flat 3.07% for wages; your effective rate may be lower after pre-tax benefits and credits.

How does Philadelphia’s Wage Tax work?

Philadelphia imposes a separate wage tax with different resident and nonresident rates, withheld by employers when applicable.

Do school district income taxes apply to everyone?

No. Only certain districts levy SDIT; if applicable, it appears as a distinct payroll line.

Do 401(k) and HSA contributions reduce Pennsylvania tax?

Yes pre-tax health premiums and HSA/Section 125 often reduce state/local taxable wages; traditional 401(k) reduces income-tax wages, not FICA.

How are bonuses withheld in Pennsylvania?

Employers may use federal percentage or aggregate methods; Pennsylvania state and local withholding apply to supplemental wages.

Are tips taxable in Pennsylvania?

Yes. Reported tips are subject to federal income tax, FICA, state income tax, and local EIT where applicable.

Why did my withholding change midyear?

Updated forms, raises, overtime, local rate changes, or benefit elections can alter per-check withholding.

How often must I be paid in Pennsylvania?

Employers must pay on regular, published paydays commonly biweekly or semimonthly consistent with wage-payment rules.

Which benefits can lower FICA?

Section 125 health premiums typically reduce FICA; traditional 401(k) does not. HSA via a cafeteria plan can reduce FICA.

Does remote work outside PA affect withholding?

Residents owe tax on all income; nonresidents owe on PA-sourced wages. Local and SDIT sourcing can depend on where work is performed.

What appears on a typical PA pay stub?

Federal tax, Social Security, Medicare, PA state tax, local EIT/SDIT (if any), deductions, year-to-date totals, and net pay.

How does pay frequency affect total tax?

It changes cash-flow timing, not annual liability; total withholding should track your yearly income and elections.