Calculating your take-home pay in Pennsylvania (PA) is unique compared to many other states because PA utilizes a flat income tax system. Whether you earn $30,000 or $300,000, the state tax rate remains the same.
1. PA State Income Tax
The Commonwealth of Pennsylvania imposes a flat income tax rate of 3.07%. This is one of the lowest flat tax rates in the country. Unlike federal taxes, there is no standard deduction or personal exemption for the PA state tax calculation; it applies to every dollar of earned compensation.
2. Local Earned Income Tax (EIT)
In addition to state taxes, most residents in PA must pay a Local Earned Income Tax. This rate varies significantly depending on the municipality and school district where you live. While many areas charge 1%, some cities like Philadelphia have significantly higher wage taxes (often exceeding 3.7% for residents).
3. Federal Taxes & FICA
Your paycheck will also be subject to Federal Income Tax, which uses progressive brackets (10% to 37%), and FICA taxes. FICA consists of Social Security (6.2%) and Medicare (1.45%). Note that Social Security taxes only apply to the first $168,600 of your earnings (as of 2024).
Example Calculation:
If you earn $60,000 annually and live in a municipality with a 1% local tax:
Gross Monthly Pay: $5,000
PA State Tax (3.07%): $153.50
Local Tax (1%): $50.00
FICA (7.65%): $382.50
Federal Tax (Est. Single): Approx. $435.00
Estimated Monthly Take-Home: $3,979.00
Note: This calculator provides an estimate based on standard 2024 tax tables. Actual take-home pay may vary based on specific employer benefits, 401k contributions, health insurance premiums, and specific local tax jurisdictions (Act 32).