Key Tax Facts: Pennsylvania
- Flat 3.07% rate - unchanged for decades
- Retirement income (pensions, 401k, IRA distributions) is fully exempt
- Social Security benefits are fully exempt
- Philadelphia and Pittsburgh impose local earned income taxes
Estimate Your 2025 Federal and Pennsylvania State Income Tax
Pennsylvania State Income Tax Overview
Pennsylvania uses a flat income tax rate of 3.07% on all taxable income, one of the lower flat rates among states that use this approach. Pennsylvania has a relatively narrow definition of taxable income - many types of income taxable federally, such as Social Security benefits and most retirement income including pensions and 401(k) distributions, are not taxed at the state level. Pennsylvania allows no standard deduction or personal exemption, but the narrow tax base effectively reduces the burden for many residents. Local earned income taxes also apply in most Pennsylvania municipalities, typically ranging from 1% to 3%.
What Is Different About Pennsylvania's Income Tax
Deductions and exemptions
Pennsylvania has no standard deduction, no itemized deductions, and no personal exemptions; the 3.07% flat rate applies to eight separate classes of income, and losses in one class cannot offset gains in another. Contributions to 529 plans, health savings accounts, and certain retirement plans are deductible. Nearly every municipality and school district levies an earned income tax of about 1% to nearly 4% in Philadelphia, collected separately.
Credits worth knowing
Pennsylvania's tax forgiveness program eliminates or reduces tax for low-income households on a sliding scale. Other credits are a credit for taxes paid to other states and a child and dependent care credit, enacted in 2022, that now matches 100% of the federal credit.
Retirement, capital gains, and other income
Pennsylvania exempts all retirement income for retirees who have reached retirement age or separated from service: Social Security, pensions, 401(k) and IRA distributions, and military retirement pay are untaxed. Capital gains are taxed at the flat 3.07% rate with no preferential treatment.
Rules summarized from the Pennsylvania Department of Revenue guidance for tax year 2025. Amounts that index annually are described in general terms; confirm the current figure on the official form instructions.
Pennsylvania Income Tax Rate (2025)
Pennsylvania uses a flat income tax rate -- the same percentage applies to all taxable income regardless of how much you earn.
What a Pennsylvania Resident Actually Pays: A Worked Example
| Taxable Income | $65,000.00 |
| Pennsylvania Flat Rate | 3.07% |
| Estimated State Tax | $1995.50 |
| Effective Rate | 3.07% |
Where Pennsylvania Stands Among the 50 States
Pennsylvania's top rate of 3.07% ranks #37 of the 41 states that tax wages -- among the ten lowest of the states that levy the tax at all. The median top rate across those 41 states is 5.2%, so Pennsylvania is below the middle of the pack. It is one of 14 states with a single flat rate, so every taxable dollar is taxed at 3.07% and the effective rate never climbs with income the way it does in the 27 graduated-rate states.
On sales tax the picture is similar: Pennsylvania's combined state and average local rate of 6.34% ranks #33 of 50, against a national median of 7.00%.
Pennsylvania State Tax at Five Income Levels (2025, single filer)
| Taxable income | Pennsylvania tax | Effective rate | Marginal rate |
|---|---|---|---|
| $40,000 | $1,228 | 3.07% | 3.07% |
| $65,000 | $1,995 | 3.07% | 3.07% |
| $100,000 | $3,070 | 3.07% | 3.07% |
| $150,000 | $4,605 | 3.07% | 3.07% |
| $250,000 | $7,675 | 3.07% | 3.07% |
Brackets applied directly to the taxable-income figure shown, before Pennsylvania-specific deductions, exemptions, or credits. Federal tax is separate and comes on top of every row.
Pennsylvania vs. Its Neighbors on $75,000 of Taxable Income
A Pennsylvania resident with $75,000 of taxable income pays about $2,303 in state income tax. Of Pennsylvania's 6 neighboring states, 1 would tax that income less and 5 would tax it more.
| State | Structure | Tax on $75,000 | Top rate | Sales tax |
|---|---|---|---|---|
| Pennsylvania (you) | Flat | $2,303 | 3.07% | 6.34% |
| Ohio | Rate to 3.5% | $1,346 | 3.5% | 7.22% |
| New Jersey | Rate to 10.75% | $2,651 | 10.75% | 6.60% |
| West Virginia | Rate to 4.82% | $2,777 | 4.82% | 6.52% |
| Maryland | Rate to 5.75% | $3,510 | 5.75% | 6% |
| Delaware | Rate to 6.6% | $3,934 | 6.6% | 0% |
| New York | Rate to 10.9% | $3,960 | 10.9% | 8.52% |
Frequently Asked Questions -- Pennsylvania Income Tax
Does Pennsylvania have a state income tax?
Yes. Pennsylvania imposes a state income tax with a flat rate of 3.07%. This is separate from your federal income tax obligation.
What is the Pennsylvania income tax rate for 2025?
Pennsylvania uses a flat income tax rate of 3.07% on all taxable income, regardless of income level or filing status.
Do I have to file a Pennsylvania state tax return?
Most full-year Pennsylvania residents with income above the state filing threshold must file a state return. Check the Pennsylvania Department of Revenue for current thresholds and requirements.
How accurate is this estimate?
The federal figure uses the official IRS 2025 brackets and standard deduction. The Pennsylvania figure applies the 2025 single-filer rate schedule to the same taxable income; it does not model Pennsylvania-specific deductions, exemptions, credits, or local income taxes, so treat it as a planning number and confirm with the Pennsylvania Department of Revenue or a tax professional before filing.
How does Pennsylvania compare with nearby states?
On $75,000 of taxable income, Pennsylvania collects about $2,303. Ohio collects $1,346, New Jersey collects $2,651, West Virginia collects $2,777, Maryland collects $3,510, Delaware collects $3,934, New York collects $3,960. See the comparison table above.
Where does Pennsylvania rank on state income tax?
Pennsylvania's top rate of 3.07% ranks #37 of the 41 states with an income tax, against a median top rate of 5.2%. Its combined sales tax of 6.34% ranks #33 of 50.
Does this calculator include federal income tax?
Yes. It estimates your 2025 federal income tax using the official IRS 2025 brackets, then applies the Pennsylvania rate schedule to the same taxable income and shows both figures plus the combined total.
Where can I find official Pennsylvania tax forms?
Official forms, instructions, and filing guidance are available at the Pennsylvania Department of Revenue.
What is the sales tax rate in Pennsylvania?
Pennsylvania's combined state and average local sales tax rate is 6.34%. This is separate from income tax and applies to most retail purchases -- use our sales tax calculator to check a specific purchase.
When are Pennsylvania 2025 state taxes due?
2025 taxes are generally filed in 2026. The Pennsylvania filing deadline is April 15, 2026, the same as the federal deadline.
Understanding Your Pennsylvania Tax Estimate
Your results combine two separate bills: federal tax owed to the IRS, and Pennsylvania state tax owed to the Pennsylvania Department of Revenue. The state return is filed separately from your federal Form 1040, with a state filing deadline of April 15. For the mechanics of how bracket math actually works -- why your effective rate is almost always lower than your top bracket -- see our marginal vs. effective tax rate guide.
Lowering Your Pennsylvania Bill
Pre-tax retirement contributions reduce your federal and Pennsylvania taxable income in the same move -- see our 401(k) contribution limits and HSA limits guides for the current caps. Beyond that, Pennsylvania-specific credits and deductions that don't exist at the federal level are listed at the Pennsylvania Department of Revenue -- worth checking, since these are easy to miss if you only look at federal guidance.
Combined Sales + Income Tax Picture
Pennsylvania's combined state-plus-average-local sales tax rate is 6.34%. If you're self-employed, that's an added layer on top of income tax -- our self-employment tax calculator covers the SE-specific piece separately.
Disclaimer: Estimates for educational purposes only. State tax results are approximations based on published bracket data and do not account for all deductions, credits, exemptions, local taxes, or individual situations. Not tax, legal, or financial advice. Consult the Pennsylvania Department of Revenue or a qualified tax professional for guidance specific to your situation.