Pennsylvania income tax goes up to 3.07% at the top bracket. Calculate your combined federal + state effective tax rate for 2026. Formula shown, sources cited — no account required.
Pennsylvania's flat income tax rate of 3.07% is one of the simplest tax structures in the country — the same rate applies to every dollar of earned income above the standard deduction. That predictability benefits both wage earners and self-employed workers who want to estimate their state liability without navigating complex bracket schedules. At 3.07%, the state's income tax burden on a median earner at $77,545 comes to roughly $2,381 per year — a low figure by national comparison. Federal taxes remain the dominant obligation, typically putting median households in the 22% marginal bracket. The most important feature of Pennsylvania's tax code is the complete exemption for all retirement income, which means IRA withdrawals, pension payments, and Social Security face zero state tax. For working-age earners, there are no special deductions for contributions beyond the standard federal treatment. Some local municipalities in Pennsylvania also levy earned income taxes, typically in the 1–2% range, so checking your local rate is worth doing. The tax bracket calculator shows your combined state and federal effective rate as a Pennsylvania resident.
Pennsylvania Tax Brackets Explained (2026)
Pennsylvania has a state income tax with a top marginal rate of 3.07%. On top of federal rates (10%–37%), residents can face a combined marginal rate exceeding 35% at higher income levels. However, your effective rate is always lower than the marginal rate because only income above each threshold is taxed at that bracket's rate.
The median household in Pennsylvania earns $77,545/year. At that income (single filer), the federal effective rate is approximately 12–14%, bringing total income tax (federal + state) to roughly 14–16%.
How Marginal vs. Effective Rate Works
The marginal rate is the rate on your last dollar of income — it does not apply to all income. The effective rate is your total tax divided by total income. For example, someone earning $100,000 in Pennsylvania has a 22% federal marginal rate but an effective federal rate of roughly 15%, because the first $44,725 (2024) is taxed at 10% and 12%, not 22%.