Pennsylvania payroll taxes

State income tax: Flat Pennsylvania personal income tax (PIT). Employers withhold using your PA-W4 (Employee’s Withholding Certificate) and the latest state tables.
Local Earned Income Tax (EIT): Many municipalities/school districts levy an additional wage tax; employers generally withhold based on your work location (and sometimes residence), using your Residency Certification Form.
Local Services Tax (LST): Flat annual tax (often up to $52) in many jurisdictions; usually withheld per-paycheck when applicable.
Employee Unemployment Compensation (UC): Pennsylvania withholds a small employee UC percentage from wages; employers also pay separate UC contributions.
FICA (federal): Social Security and Medicare—see details below.
Federal income tax (FIT): Withheld under IRS rules from your federal Form W-4.
Pre-tax deductions: 401(k), HSA/FSA, and Section 125 premiums can reduce FIT/state/local taxable wages (and sometimes FICA).
Post-tax deductions: Roth 401(k), garnishments, union dues, and other after-tax items reduce net pay after taxes.

How Your Pennsylvania Paycheck Works

Start with gross pay (salary for the period or hourly rate × hours; include overtime where due).
Subtract pre-tax items (401(k), HSA/FSA, cafeteria plans) to determine taxable wages.
Apply FICA (Social Security up to the annual wage base; Medicare on all wages; Additional Medicare for high earners).
Calculate federal withholding using IRS methods and your W-4 elections.
Calculate Pennsylvania PIT using PA-W4 and state tables.
Withhold local EIT/LST when applicable, based on work/residence jurisdictions.
Withhold Employee UC at the current employee percentage.
Employer separately pays UC (SUI)—this does not reduce your net pay.
Subtract post-tax deductions to reach your net pay.

Pennsylvania Income unemployment tax rate — 10 Years Data

Pennsylvania withholds a small employee UC percentage from wages; employers pay UC on a taxable wage base at assigned rates. Values below are representative; confirm your current rate notice and wage base.

Year	Employee UC Rate (approx.)	Employee Pays?	Employer UC Taxable Wage Base (approx.)	New Employer Rate (typ.)	Experienced Employer Rate Range (approx.)
2016	~0.07%	Yes	$10,000	~3.5%	~1.5%–9.5%
2017	~0.07%	Yes	$10,000	~3.5%	~1.5%–9.7%
2018	~0.07%	Yes	$10,000	~3.5%	~1.5%–9.8%
2019	~0.07%	Yes	$10,000	~3.5%	~1.5%–9.9%
2020	~0.07%	Yes	$10,000	~3.5%	~2.0%–10.3%
2021	~0.07%	Yes	$10,000	~3.5%	~2.0%–10.5%
2022	~0.07%	Yes	$10,000	~3.5%	~2.0%–10.7%
2023	~0.07%	Yes	$10,000	~3.5%	~2.0%–10.9%
2024	~0.07%	Yes	$10,000	~3.5%	~2.0%–11.0%
2025	~0.07%	Yes	$10,000	~3.5%	~2.0%–11.2%

Pennsylvania salary threshold

Pennsylvania generally follows federal FLSA white-collar rules. Exempt status requires meeting the current federal salary threshold and the duties tests. If either test is not met, overtime is due after 40 hours in a workweek.

Median Household Income — Pennsylvania (10 years, current dollars)

Illustrative nominal values showing trend; confirm with the latest American Community Survey for official statistics.

Year	Median Household Income
2015	$56,000
2016	$58,000
2017	$60,000
2018	$63,000
2019	$65,700
2020	$67,800
2021	$72,900
2022	$76,800
2023	$79,400
2024	$81,300

Pennsylvania Federal Insurance Contributions Act (FICA)

Social Security: 6.2% employee + 6.2% employer, up to the annual federal wage base.
Medicare: 1.45% employee + 1.45% employer on all wages.
Additional Medicare: 0.9% employee-only on wages above $200,000 (employer remains 1.45%).

Number of cities that have local income taxes

Pennsylvania widely uses local Earned Income Tax (EIT)Local Services Tax (LST) in many municipalities/school districts. Employers typically withhold the workplace EIT and, when supported, the residence EIT, granting any local credits per jurisdictional rules. Rates vary—Philadelphia has a separate wage tax system, while many municipalities range ~1%–3% and LST up to $52 annually.

Sample Pennsylvania local wage taxes (illustrative)

Jurisdiction	Employee Wage Tax / EIT	LST (Annual)	Notes
Philadelphia (City)	~3%+ (resident/nonresident rates differ)	N/A	Separate wage tax administered by the City
Pittsburgh (City)	~1%–3% (EIT varies by SD/municipality)	Up to $52	Residence credit rules vary
Allentown	~1.35%–1.7%	Up to $52	Keystone/Berkheimer administered
Scranton	~3% (composite)	Up to $52	Check specific resident/nonresident rates
Lancaster	~1.1%–1.75%	Up to $52	Varies by school district
Erie	~1.18%–1.65%	Up to $52	Residence/workplace combination common
Reading	~1.6%–3.6%	Up to $52	Verify credit limits
Harrisburg	~1%–2%	Up to $52	Check SD EIT component
Bethlehem	~1.38%–1.75%	Up to $52	Two-county jurisdiction nuances
York	~1%–1.75%	Up to $52	Administrator varies by district

Pennsylvania Wage and Hour Laws: Overtime, Pay Frequency

Overtime: Most non-exempt employees earn 1.5× after 40 hours/week (no statewide daily OT rule).
Minimum wage: Pennsylvania currently tracks the federal minimum for most covered employers; check your pay period for updates or local rules.
Pay frequency: Employers must establish regular paydays (weekly/biweekly/semimonthly common) and pay timely; final-pay deadlines apply at separation.
Meals/rests: Follow state/federal standards; minors and certain industries have additional protections.

Additional Pennsylvania forms

PA-W4 — Employee’s Pennsylvania Withholding Certificate.
Residency Certification Form — Determines correct local EIT (residence/work).
Withholding returns — Employer deposit schedule and annual reconciliation with W-2 filing.
UC Employer Registration & Rate Notice — Pennsylvania UC account setup and assigned rate.
New Hire Reporting — Report hires/rehires within the required timeframe.
Required postings — Wage/hour, unemployment, safety, and federal notices.

FAQs — Pennsylvania Salary Paycheck Calculator

How do I use a Pennsylvania Salary Paycheck Calculator to estimate net pay?

Enter gross pay and frequency, your W-4 and PA-W4 elections, locality details (work/home), and any pre-/post-tax deductions. The calculator applies FICA, FIT, Pennsylvania PIT, local EIT/LST, and employee UC to produce per-pay and annual take-home estimates.

Why does my Pennsylvania paycheck show both state and local taxes?

Pennsylvania levies a flat state income tax and many municipalities/school districts levy local EIT and an LST. Employers generally withhold state and local amounts based on your work and residence locations.

Do Pennsylvania employees pay unemployment insurance from wages?

Yes, a small employee UC percentage is withheld from wages. Employers also pay separate UC contributions on a taxable wage base at assigned rates.

Which forms control my Pennsylvania withholding?

PA-W4 sets your state withholding. Provide a Residency Certification Form so payroll withholds the correct local EIT/LST based on residence and work jurisdictions.

How does Philadelphia wage tax differ from EIT?

Philadelphia administers its own wage tax with distinct resident/nonresident rates. Outside Philadelphia, most places use EIT administered by third-party collectors. The calculator can model both systems.

What salary makes me exempt from overtime in Pennsylvania?

Pennsylvania generally follows federal FLSA white-collar standards. Exempt status requires meeting the current federal salary threshold and the duties tests; otherwise overtime is due after 40 hours/week.

How are bonuses and commissions taxed on a Pennsylvania paycheck?

They’re subject to federal supplemental methods, FICA, Pennsylvania PIT, local EIT (and possibly LST). Enter bonuses as supplemental pay to apply correct methods.

Can I add an extra amount of Pennsylvania or local withholding?

Yes. Request a flat extra state amount on PA-W4 and ask payroll about extra local withholding. Enter the same extras in the calculator to preview impact.

How do pre-tax benefits (401(k), HSA, FSA) affect Pennsylvania and local taxes?

Qualified pre-tax benefits reduce FIT and often state/local taxable wages, and sometimes FICA. Mark them as pre-tax to see increased take-home pay.

Are Roth 401(k) contributions pre-tax?

No. Roth contributions are post-tax and do not reduce payroll taxable wages. Enter them as post-tax deductions in the calculator.

Why did my net change mid-year?

Crossing the Social Security wage base, changing benefits, supplemental pay, or updating W-4/PA-W4/local settings can shift withholdings. Enter YTD data so Social Security stops at the cap while Medicare continues.

How are tips treated for Pennsylvania payroll?

Reported tips are taxable for FIT, FICA, Pennsylvania PIT, and local EIT. Include tips in your estimate to avoid under-withholding.

Does Additional Medicare tax apply in Pennsylvania?

Yes—federally. Employees pay an extra 0.9% above $200,000 in wages; employers do not match it. The calculator adds it automatically when applicable.

Can student employees be exempt from FICA?

Some student workers at qualifying institutions may be FICA-exempt while enrolled at least half-time. If exempt, remove FICA in that job’s estimate.

What if I live in one PA municipality and work in another?

Your employer usually withholds the work-location EIT; your residence may grant a credit against it (percentage/caps vary). Provide the Residency Certification Form and model the interaction in the calculator.

How do I model overtime and shift differentials?

Add overtime hours and premiums; the calculator recomputes FICA, FIT, PIT, and local EIT/LST for the period, reflecting higher gross income.

What pay frequency should I select?

Use your employer’s schedule (weekly, biweekly, semimonthly, monthly). The tool prorates wages and withholdings per period and annualizes statutory limits such as the Social Security wage base.

How are PTO cash-outs taxed?

PTO payouts are taxable wages subject to FIT, FICA, Pennsylvania PIT, and local EIT (and LST if applicable). If paid separately, supplemental methods may apply—model as supplemental wages.

Can I claim exempt from Pennsylvania withholding?

Only if you meet state criteria (e.g., no PA tax liability last year and none expected this year). Otherwise, use standard PA-W4 elections or add a specific extra amount.

Are charitable payroll deductions pre-tax?

Typically no; they are post-tax and don’t reduce payroll taxable wages. Any deduction benefits are claimed on your returns if you itemize.

What if I work partly outside Pennsylvania?

Withholding follows where wages are earned and reciprocity/credit rules. Another state may require withholding; Pennsylvania may allow credits on your return for tax paid elsewhere.

How do garnishments affect my paycheck?

Enter court-ordered amounts as post-tax deductions. The calculator subtracts them after taxes. Federal/state limits and employer processing rules apply.

How can I avoid a large balance due at year-end?

Increase per-paycheck withholding (federal, state, local), adjust pre-tax benefits, or make estimated payments. Use the calculator to preview outcomes before changing payroll settings.

Can I compare traditional vs. Roth 401(k) effects on take-home?

Yes—run traditional (pre-tax) and Roth (post-tax) scenarios to see immediate take-home differences and long-term implications.

How do I model a mid-year raise or promotion?

Run two scenarios—old rate for already-paid checks and new rate for remaining periods—then combine to project full-year taxes and net pay.

Pennsylvania Salary Paycheck Calculator