Pennsylvania Paycheck Calculator 2026
Pennsylvania has a flat 3.07% state income tax plus one of the most complex local tax systems in the country — over 2,500 municipalities and school districts levy their own Earned Income Tax (EIT).
Pennsylvania tax breakdown — what you need to know
Key facts about Pennsylvania state, local, and federal taxes for 2026.
Earned Income Tax (EIT)
Pennsylvania municipalities and school districts levy a combined Earned Income Tax. Rates range from 0.5% in rural boroughs to 3.79% in Philadelphia. You pay based on where you LIVE, not where you work — unless your employer withholds at a higher rate.
Local Services Tax (LST)
Most PA municipalities also charge a $52/year Local Services Tax (LST), withheld $1/week from paychecks. Employees earning under $12,000/year are exempt. This flat tax is not included in percentage-based calculations above.
School district component
The EIT rate you see is typically a combined rate: municipality + school district. For example, Pittsburgh's 3% is split between the city (2%) and the Pittsburgh School District (1%). Both are withheld from your paycheck.
Reciprocity with 6 states
PA has reciprocity with Indiana, Maryland, New Jersey, Ohio, Virginia, and West Virginia. If you live in one of those states and work in PA, you pay income tax to your home state, not PA — but PA local EIT still applies.
Major PA municipality EIT rates
Source: state revenue departments and municipal ordinances. Rates effective 2026.
| Municipality | Resident rate | Non-resident rate |
|---|---|---|
| Philadelphia | 3.79% | 3.50% |
| Pittsburgh | 3.00% | 1.00% |
| Reading | 3.60% | 1.30% |
| Scranton | 3.40% | 2.00% |
| Allentown | 2.25% | 1.25% |
| Erie | 1.80% | 1.25% |
| Wilkes-Barre | 3.00% | 1.00% |
| Harrisburg | 2.00% | 1.25% |
| Lancaster | 2.00% | 1.25% |
| Most suburbs | 1.00% | 0.50% |