How it works
The calculator starts with your gross pay for one pay period, subtracts the pre-tax deductions you entered, and then works out each tax separately. Federal income tax follows the percentage method in IRS Publication 15-T (2026), Federal Income Tax Withholding Methods, using your W-4 entries. Social Security is 6.2% of wages up to $184,500 for the year (SSA; IRS Publication 15 (2026)). Medicare is 1.45% of all wages, plus Additional Medicare Tax of 0.9% on wages over $200,000 (IRS Publication 15 (2026)).
Pennsylvania income tax is a flat 3.07% of compensation (Pennsylvania Department of Revenue (2026)). There is no state withholding certificate with allowances, and employee 401(k) deferrals are not excluded, so the state tax base is usually higher than the federal one. The employee unemployment compensation contribution is 0.07% of all wages (Pennsylvania Department of Labor & Industry (2026)). Local earned income tax uses the higher of your home rate and your work location's non-resident rate, as listed by the Pennsylvania Department of Community and Economic Development (2026), and the Local Services Tax is a yearly amount set by the municipality and prorated per paycheck. The calculator does not include either yet, so both lines read "not included". In Philadelphia the wage tax is 3.735% for residents and 3.425% for non-residents (City of Philadelphia Department of Revenue (2026)).
Not included: LST low-income exemptions, per capita and occupation taxes billed directly, garnishments, union dues, after-tax Roth contributions, tips, bonuses taxed as supplemental wages, and year-end credits or refunds. Your employer's payroll may round differently.
Worked example
Take a $60,000 salary paid biweekly, filing single on the W-4, living and working in Pittsburgh with no other deductions. Gross pay is $2,307.69 per paycheck. Federal income tax withholding comes to $193.08, Social Security to $143.08 and Medicare to $33.46. Pennsylvania income tax is $70.85 and the employee unemployment contribution is $1.62. Pittsburgh's combined city and school district earned income tax and the Local Services Tax are not included yet, so the take-home pay below is before them. Take-home pay is $1,865.60 per paycheck, or $48,505.60 over the year's 26 paychecks.
Frequently asked questions
Does Pennsylvania have a flat income tax?
Yes. Pennsylvania taxes wages at one rate, 3.07%, with no standard deduction or personal exemption on the paycheck (Pennsylvania Department of Revenue (2026)).
Why does Pennsylvania tax my 401(k) contributions?
Pennsylvania does not exclude employee elective deferrals to a 401(k) from state taxable compensation, unlike the federal rules. The calculator lowers federal wages for a 401(k) amount but leaves Pennsylvania and local wages unchanged.
What is the PA UC deduction on my pay stub?
It is the employee share of Pennsylvania unemployment compensation tax, 0.07% of gross wages for 2026 (Pennsylvania Department of Labor & Industry (2026)).
What is the Local Services Tax in Pennsylvania?
It is a yearly tax some municipalities charge on people who work within their limits, capped by state law at a yearly maximum and usually withheld in equal amounts per paycheck (Pennsylvania Department of Community and Economic Development (2026)). The calculator does not include it yet.
How much is the Philadelphia wage tax?
For 2026 it is 3.735% for Philadelphia residents and 3.425% for non-residents who work in the city (City of Philadelphia Department of Revenue (2026)).
I live in New Jersey and work in Pennsylvania. Does Pennsylvania withhold state tax?
No state tax is due to Pennsylvania on those wages under the New Jersey–Pennsylvania reciprocal agreement, once the employee files the certificate that tells the employer. Local taxes such as the Philadelphia wage tax are not covered by that agreement.