Navigate Pennsylvania's lowest flat state tax rate (3.07%) and understand local Earned Income Taxes (EIT) including Philadelphia's 3.75% Wage Tax.
Pennsylvania 3.07% Flat State Income Tax
Pennsylvania boasts the lowest flat individual income tax rate in the United States at 3.07%. Governed by the Pennsylvania Department of Revenue on Form PA-40, PA taxes 8 distinct classes of income with no standard deduction.
However, taxpayers in Pennsylvania must understand local municipal taxes known as the Earned Income Tax (EIT) or City Wage Tax.
Local Earned Income Taxes (EIT) in PA Municipalities
Under Pennsylvania Act 32, local school districts and municipalities levy Earned Income Taxes:
- Philadelphia City Wage Tax: 3.75% for Philadelphia residents (3.44% for non-residents working within city limits).
- Pittsburgh: Combined 3.0% local EIT (2% school district + 1% city).
- Statewide Municipalities: Typically range between 1.0% and 2.0% EIT.
Calculate your exact Pennsylvania take-home pay and local withholdings with our Pennsylvania Income Tax Calculator.