Pennsylvania has a unique payroll tax system that includes state-level taxes and a significant component of local taxes. For employees working in Pennsylvania, understanding these deductions is crucial for accurate financial planning. This calculator helps estimate common deductions, primarily focusing on the Pennsylvania state income tax and local Earned Income Tax (EIT).
Pennsylvania State Income Tax
Pennsylvania has a flat tax rate for state income tax. As of recent regulations, this rate is 3.07%. This tax applies to most forms of income, including wages, salaries, and commissions.
Local Earned Income Tax (EIT)
One of the most distinctive features of Pennsylvania payroll is the Local Earned Income Tax (EIT). This tax is levied by local municipalities and school districts and can vary significantly from one location to another. The rate is typically a percentage of your gross wages.
Rates Vary: EIT rates can range from 0% to over 3% depending on the specific municipality and/or school district.
Residency vs. Employment Location: Generally, EIT is based on where you live (your residency), not necessarily where you work, though some municipalities have different rules. It's important to check your specific local ordinances.
PA-40 EIT Form: Residents are typically required to file a PA-40 tax return which includes the EIT. Employers often withhold EIT based on the employee's work location, but the employee is ultimately responsible for ensuring the correct amount is paid.
PA Local Tax Forms: Many municipalities contract with a Local Earned Income Tax collector (e.g., Berkheimer, Keystone Collections Group) to manage EIT withholding and filing.
How the Calculator Works
This calculator provides an estimation based on the information you provide:
Gross Bi-Weekly Wages: This is your total earnings before any deductions for a two-week pay period.
Pennsylvania State Income Tax: Calculated as 3.07% of your Gross Bi-Weekly Wages.
Local Earned Income Tax (EIT): Calculated as the percentage you provide for your Local EIT Rate multiplied by your Gross Bi-Weekly Wages. The calculator assumes the EIT rate applies to your gross wages for the pay period.
Total Estimated Tax: The sum of the estimated Pennsylvania State Income Tax and the estimated Local Earned Income Tax.
Note: This calculator is a simplified tool. It does not include other potential payroll deductions such as Federal Income Tax, Social Security Tax, Medicare Tax, unemployment taxes, or specific local taxes that might apply. It is intended for estimation purposes only. Always consult with a tax professional or refer to official tax documentation for precise calculations and filing requirements.
function calculatePAPayrollTaxes() {
var grossWagesInput = document.getElementById("grossWages");
var paLocalTaxRateInput = document.getElementById("paLocalTaxRate");
var resultDiv = document.getElementById("result");
// Clear previous results
resultDiv.innerHTML = ";
var grossWages = parseFloat(grossWagesInput.value);
var paLocalTaxRate = parseFloat(paLocalTaxRateInput.value);
// Basic validation
if (isNaN(grossWages) || grossWages < 0) {
resultDiv.innerHTML = 'Please enter a valid Gross Bi-Weekly Wages amount.';
return;
}
if (isNaN(paLocalTaxRate) || paLocalTaxRate < 0) {
resultDiv.innerHTML = 'Please enter a valid Local EIT Rate (e.g., 1.0 for 1%).';
return;
}
// Constants for PA State Tax
var paStateTaxRate = 0.0307; // 3.07%
// Calculate Taxes
var paStateTax = grossWages * paStateTaxRate;
var paLocalTax = grossWages * (paLocalTaxRate / 100);
var totalEstimatedTax = paStateTax + paLocalTax;
// Format results
var formattedPaStateTax = paStateTax.toFixed(2);
var formattedPaLocalTax = paLocalTax.toFixed(2);
var formattedTotalEstimatedTax = totalEstimatedTax.toFixed(2);
// Display Results
var resultHTML = '