2026 Tax Tables

Pennsylvania Payroll Withholding Calculator (2026)

Pennsylvania has one of the simplest state income tax systems in the country: a flat 3.07% rate on all compensation, unchanged since 2004. There is no standard deduction or personal exemption to subtract — the rate applies directly to gross wages. Most employers simply multiply gross wages by 3.07% to determine the withholding amount each pay period.

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State Tax Rate

3.07% flat

State W-4 Form

PA-W4

Tax Year

2026

Key Facts

  • Flat 3.07% rate on all compensation — unchanged since 2004
  • No standard deduction or personal exemption adjustments
  • Withholding = gross wages × 3.07% each pay period
  • Local Earned Income Tax (EIT) may also apply — rates vary by municipality

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Pennsylvania Withholding — Frequently Asked Questions

What is the Pennsylvania income tax rate for 2026?

Pennsylvania levies a flat 3.07% income tax on all wages and compensation. This rate has been unchanged since 2004 and is one of the lowest flat rates among states with an income tax.

Does Pennsylvania have allowances or a standard deduction for withholding?

No. Pennsylvania does not use allowances or a standard deduction for withholding purposes. The 3.07% rate applies directly to gross wages with no adjustments.

Do Pennsylvania employees need to fill out a PA-W4?

The PA Employee's Withholding Exemption Certificate (PA-W4) is mainly used to claim a withholding exemption. Most employees are simply subject to the flat 3.07% rate and do not need to submit a PA-W4.

What about Pennsylvania local income tax?

Many Pennsylvania municipalities levy an Earned Income Tax (EIT) on top of the state income tax. Rates vary by location. Withhold Right calculates the state portion only — check with your local tax collector for EIT rates.