How your Pennsylvania paycheck is calculated
Pennsylvania income tax (3.07%)
Employers multiply compensation subject to withholding by 3.07% (PA REV-415). There are no allowances or filing statuses. Unlike federal tax, your elective 401(k)/403(b) deferrals are taxable compensation for Pennsylvania, so they do not lower PA tax in this calculator.
Philadelphia Wage Tax and local EIT
From July 1, 2026 the Philadelphia Wage Tax is 3.735% for residents and 3.425% for non-residents who work in the city (City of Philadelphia). Elsewhere, most Pennsylvania municipalities and school districts levy a combined earned income tax; enter the rate that applies to you (your employer generally withholds the higher of your home-municipality resident rate and your work-location non-resident rate). Look up your rates with the PA DCED PSD code and EIT rate lookup.
Local Services Tax and UC
Many municipalities levy a Local Services Tax of up to $52 a year; enter your annual amount and it is spread across your paychecks. The unemployment compensation employee contribution is 0.07% of total gross wages with no wage cap (PA Department of Labor & Industry).
Federal income tax, Social Security and Medicare
Federal withholding uses the IRS 2026 percentage method for automated payroll systems (Publication 15-T, Worksheet 1A). Social Security is 6.2% of wages up to the $184,500 wage base, and Medicare is 1.45% of all wages plus 0.9% Additional Medicare Tax on wages above $200,000. Per-paycheck Social Security and Medicare are shown as a yearly average: if you pass the wage base, your later paychecks will show none.
What this calculator does not include
This estimate does not cover bonuses or other supplemental wages, multiple jobs, Roth (after-tax) contributions, HSA payroll contributions, wage garnishments, or tips and overtime deductions unless you enter them on Form W-4 Step 4(b). Section 125 health premiums are treated as excluded from PA and local wages; some cafeteria-plan benefits are taxable in Pennsylvania. Act 32 local rules (resident vs. work-location rates, credits) are simplified to the single rate you enter. See the methodology for details.
Frequently asked questions
Does my 401(k) lower my Pennsylvania tax?
No. Pennsylvania treats employee elective deferrals to 401(k) and similar plans as taxable compensation (REV-415), so they are included in PA wages even though they reduce federal taxable wages.
What is the Philadelphia Wage Tax rate in 2026?
Effective July 1, 2026: 3.735% for Philadelphia residents and 3.425% for non-residents who work in Philadelphia, according to the City of Philadelphia Department of Revenue.
What is the PA UC employee withholding?
0.07% (0.0007) of total gross wages for 2023 and later, with no cap. On a $2,000 paycheck that is $1.40.
How is federal income tax withholding calculated?
We follow Worksheet 1A of IRS Publication 15-T (2026) for a 2020-or-later Form W-4: your taxable pay is annualized, adjusted by the Form W-4 entries (Step 2 checkbox, Step 3 credits, Step 4 other income, deductions and extra withholding), run through the 2026 percentage-method table for your filing status, and divided back by your number of paychecks. Our engine reproduces all 4,350 cells of the IRS 2026 wage-bracket tables for weekly, biweekly, semimonthly and monthly pay.
Why does Social Security stop at $184,500?
For 2026 the Social Security (OASDI) wage base is $184,500 (SSA). The 6.2% employee tax applies only to wages up to that amount each year. Medicare (1.45%) has no cap, and employers must withhold an extra 0.9% Additional Medicare Tax on wages above $200,000 in the year, regardless of filing status.
Is withholding the same as the tax I will owe?
No. Withholding is an estimate taken from each paycheck. Your actual tax is settled when you file your return and depends on all your income, deductions and credits, so you may get a refund or owe more.
Official sources
- Pennsylvania DOR: REV-415 Employer Withholding Information Guide (3.07%)
- PA Department of Labor & Industry: UC Employee Withholding (0.07%)
- City of Philadelphia: Wage Tax (rates effective July 1, 2026)
- PA DCED: PSD codes and EIT rates (local tax lookup)
- IRS Publication 15-T (2026), Federal Income Tax Withholding Methods
- IRS Rev. Proc. 2025-32 (2026 tax brackets and standard deduction)
- SSA: 2026 Social Security wage base ($184,500)
- IRS Topic 560: Additional Medicare Tax