Calculate your exact take-home pay in Pennsylvania for 2025. Pennsylvania has a flat state income tax rate of 3.07% — one of the lowest in the US. Use our free calculator below to see your real paycheck after all taxes.
2025 federal & state rates · Pennsylvania specific
Pennsylvania uses a flat 3.07% income tax rate on all income — one of the lowest flat rates in the country. However, many PA municipalities charge an additional local earned income tax averaging 1-3%.
| Annual Salary | Monthly Take-Home | Annual Take-Home | Effective Tax Rate |
|---|---|---|---|
| $40,000 | $2,832 | $33,984 | 15.0% |
| $60,000 | $4,024 | $48,288 | 19.5% |
| $80,000 | $5,148 | $61,776 | 22.8% |
| $100,000 | $6,208 | $74,496 | 25.5% |
| $150,000 | $8,768 | $105,216 | 29.9% |
*Estimates for single filer, standard deduction, no additional deductions.
| City | Median Home Price | Avg Rent (1BR) | Cost of Living |
|---|---|---|---|
| Philadelphia | $230,000 | $1,700 | High |
| Pittsburgh | $245,000 | $1,350 | Moderate |
| Allentown | $280,000 | $1,200 | Moderate |
| Erie | $155,000 | $900 | Low |
| Reading | $185,000 | $1,000 | Low-Moderate |
Pennsylvania has one of the lowest flat income tax rates in the country at 3.07%. This simple, flat structure means every Pennsylvania worker pays the same percentage regardless of income — making Pennsylvania especially attractive for higher earners who would face significantly higher marginal rates in progressive-tax states like New York or New Jersey next door. Pennsylvania's straightforward tax system is one of the reasons it remains a major hub for business and manufacturing in the Northeast.
Pennsylvania's 3.07% rate is refreshingly simple. On a $75,000 salary, that's $2,302 in state income tax for the year — significantly less than neighboring New Jersey (up to 10.75%) or New York (up to 10.9%). Pennsylvania has no standard deduction and no personal exemption at the state level, meaning the 3.07% applies to virtually all taxable income from the first dollar.
Philadelphia is a major exception to Pennsylvania's low-tax environment. Philadelphia levies a Wage Tax of 3.75% for residents and 3.44% for non-residents who work in the city. Combined with Pennsylvania's 3.07% state tax and federal taxes, Philadelphia workers can see a combined state and local burden approaching 7% — comparable to many higher-tax states. Workers outside Philadelphia enjoy only the 3.07% state rate.
Pennsylvania's diverse economy spans healthcare (a top employer in Philadelphia and Pittsburgh), financial services, manufacturing, energy (natural gas), agriculture, and education. The median household income in Pennsylvania is approximately $67,000. Pittsburgh has emerged as a significant technology hub with Carnegie Mellon University driving robotics and AI research that attracts major employers.
A $100,000 salary in Pennsylvania takes home approximately $72,500 per year. The same salary in neighboring New Jersey takes home about $68,000 — Pennsylvania workers keep $4,500 more annually due to the significantly lower flat tax rate.
No — Pennsylvania is one of the most retirement-friendly states in the country. Pennsylvania does not tax Social Security benefits, public or private pension income, or distributions from IRAs and 401(k)s after age 59½. This makes Pennsylvania especially attractive for retirees who have significant non-wage income.
Pennsylvania's minimum wage remains $7.25 per hour — equal to the federal minimum wage. Pennsylvania has not raised its state minimum wage since 2009, making it one of the few states still at the federal floor. Philadelphia has a higher local minimum wage for city workers.
Pennsylvania and New Jersey have a reciprocity agreement, meaning residents who live in one state but work in the other only pay income tax to their home state. A Pennsylvania resident working in New Jersey pays only Pennsylvania's 3.07% — not New Jersey's higher rates up to 10.75%. This makes living in Pennsylvania while working in NJ a significant financial advantage.