PA's flat 3.07% state tax — one of the lowest flat rates in the US. Philadelphia residents can add the city wage tax. Updated for 2026.
Pennsylvania's 3.07% flat rate is dramatically lower than New York's progressive rates. On a $65,000 salary:
A Pennsylvania worker earning $65,000 keeps about $1,800 more per year than a New York worker. For commuters who work in NYC but live in PA, the tax savings can be even more significant — PA's 3.07% applies instead of NY's higher rates on days worked outside NY state.
| Item | Rate / Amount | Notes |
|---|---|---|
| PA State Income Tax | 3.07% | Flat rate, stable since 2004. No standard deduction. |
| Philadelphia Wage Tax | 3.75% | Residents only. In addition to state tax. |
| Pittsburgh EIT | 3.0% | Approximate. Varies by municipality. |
| Standard Deduction | None | PA taxes all compensation directly. |
| Social Security | Not taxed | PA does not tax SS benefits. |
| Retirement Income | Exempt (age 59½+) | Distributions from eligible retirement plans. |