Overview of Pennsylvania Taxes: Pennsylvania has a flat income tax rate of 3.07%, the second lowest of all states with a flat tax. The statewide sales tax rate is 6%, although two counties and a number of municipalities charge an additional sales tax above this rate.
Your 2025 Estimated State Income Tax:
Breakdown of Your Income Taxes
Your Annual Take-Home Pay
About This Calculator
Our income tax calculator calculates your federal, state and local taxes based on several key inputs: your household income, location, filing status and number of personal exemptions.
How Income Taxes Are Calculated
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First, we calculate your adjusted gross income (AGI) by taking your total household income and reducing it by certain items such as contributions to your 401(k).
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Next, from AGI we subtract exemptions and deductions (either itemized or standard) to get your taxable income. Exemptions can be claimed for each taxpayer.
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Based on your filing status, your taxable income is then applied to the tax brackets to calculate your federal income taxes owed for the year.
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Your location will determine whether you owe local and / or state taxes.
When Do We Update? - We check for any updates to the latest tax rates and regulations annually.
Customer Service - If you would like to leave any feedback, feel free to email info@smartasset.com.
Assumptions
Deductions
- "Other Pre-Tax Deductions" are not used to calculate state taxable income.
Credits
- The only federal credit automatically calculated is the Savers Credit, depending on your eligibility.
- We do not apply any refundable credits, like the Child Tax Credit or Earned Income Tax Credit (EITC).
- We do not apply state credits in our calculations.
Itemized Deductions
- If itemizing at the federal level, you may need to itemize at the state level too. Some states don't allow itemized deductions, which is accounted for in our calculations.
- When calculating the SALT deduction for itemized deductions, we use state and local taxes, and we assume your MAGI.
- We assume that there is no cap to itemized deductions, if a state allows them.
- We do not categorize itemized deductions (such as medical expenses or mortgage interest), which could be subject to specific caps per state.
Local Tax
- Depending on the state, we calculate local taxes at the city level or county level. We do not include local taxes on school districts, metro areas or combine county and city taxes.
- With the exception of NYC, Yonkers, and Portland/Multnomah County, we assume local taxes are a flat tax on either state taxable income or gross income.
Actual results may vary based on individual circumstances and changes in tax laws or IRS regulations. Estimates provided by this calculator do not guarantee income tax amounts or rates. Past performance is not indicative of future results.
SmartAsset.com does not provide legal, tax, accounting or financial advice (except for referring users to third-party advisers registered or chartered as fiduciaries ("Adviser(s)") with a regulatory body in the United States). Articles, opinions and tools are for general informational purposes only and are not intended to provide specific advice or recommendations for any individual. Users should consult their accountant, tax advisor or legal professional to address their particular situation.
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Taxes in Pennsylvania
Pennsylvania State Tax Quick Facts
- State income tax: 3.07%
- Local income tax: 0% – 3.74%
- Sales tax: 6% – 8%
- Property tax: 1.16% average effective rate
- Gas tax: 58.70 cents per gallon
Pennsylvania receives tax revenue from two primary sources: a statewide income tax of 3.07% and a statewide sales tax of 6%. In addition to these two state taxes, Pennsylvania residents will also face local taxes on real estate, sales and income.
Many cities in Pennsylvania collect a Local Earned Income Tax. This is typically 1%, but can be as high as almost 3.74%. In smaller municipalities, this tax is capped by state law at 2%. However, in many larger cities, including Pittsburgh and Philadelphia, you’ll encounter higher rates.
A financial advisor can help you understand how taxes fit into your overall financial goals. Finding a financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
Pennsylvania Income Tax
Pennsylvania utilizes a “flat tax” system. This means that every taxpayer in the state, regardless of their level of income, pays the same percentage of their taxable income in state income taxes. That rate is 3.07%.
That does not mean that taxpayers in Pennsylvania have lower tax bills, however. For starters, unlike many other states that collect an income tax, Pennsylvania has no standard deduction or exemption. Additionally, itemized deductions (which reduce your taxable income) are limited to just four categories: medical savings account contributions, health savings account contributions, 529 college savings plan contributions and IRC Section 529A Pennsylvania ABLE Savings Account Program contributions.
While Pennsylvania’s actual tax rate is lower than in many other states, its effective tax rate (the actual amount paid as a percentage of income) may be higher for many taxpayers.
Local Earned Income Tax
Municipalities in Pennsylvania can collect income taxes of their own, called a “Local Earned Income Tax.” While small cities collect a tax of no more than 2% (in many places, the rate is just 1%), larger cities typically collect more. Below are the local earned income tax rates for Pennsylvania’s largest cities.
Local Income Tax Rates of 10 Largest Cities
| City | Rate |
|---|---|
| Allentown | 1.975% |
| Bethlehem | 1.000% |
| Erie | 1.650% |
| Harrisburg | 2.00% |
| Lancaster | 1.600% |
| Philadelphia | 3.740% |
| Pittsburgh | 3.000% |
| Reading | 3.600% |
| Scranton | 3.400% |
| York | 1.25% |
Pennsylvania Sales Tax
The statewide base sales tax rate in Pennsylvania is 6%. This is the rate charged in most places around the state, with two exceptions. The first is Allegheny County (which includes the city of Pittsburgh), where there is an additional 1% sales tax. The other exception is in Philadelphia, where there is a local surcharge totaling 2%, bringing the total sales tax rate there to 8%.
Numerous items are excluded from sales taxes in Pennsylvania, including clothing, groceries, prescription drugs, over-the-counter-medications, as well as other medical devices and services. However, prepared food is taxed at 6%.
Pennsylvania Alcohol Tax
Alcoholic beverages are subject to additional excise taxes in Pennsylvania, although that tax is often included in the price. All liquor sold by the Pennsylvania Liquor Control Board (LCB) is taxed at 18%. The tax is eight cents per gallon for beer.
Pennsylvania Property Tax
The median effective property tax rate in Pennsylvania is 1.16%, but that varies greatly depending on where you live. In Philadelphia County, for example, the median effective rate is 0.83%. In Delaware County, the rate is 1.67%. These rates are based on the median annual tax payment as a percentage of median home value.
Seniors, adults with disabilities and widows or widowers over age 50 may also be eligible for a property tax rebate of up to $1,000, depending on the city of residence and income level.
If you’re considering buying a property in Pennsylvania or are looking into refinancing a current home loan, our Pennsylvania mortgage rates guide lays out important information you’ll need to get started on the process of getting a mortgage.
Pennsylvania Inheritance Tax
Inheritances given to state residents is taxed depending on the relation of the deceased to the person receiving the inheritance. There is no tax on transfers to a surviving spouse or to a parent from a child aged 21 or younger. The tax is 4.5% for direct descendants (children, grandchildren, etc.), 12% for siblings and 15% for other heirs.
Pennsylvania Gas Tax
Pennsylvania has a gas tax of 58.70 cents per gallon.
Pennsylvania Small Games of Chance Tax
Games sold in taverns (like computerized blackjack) are subject to a state tax of 60% of net revenue earned by the game. The host municipality will also charge a tax of 5% of net revenue.