How much is Pennsylvania income tax?
Pennsylvania income tax at 3 levels of Pennsylvania taxable income — what is left after Pennsylvania's own deductions and exemptions. Local income taxes are not included.
| Taxable income | Single | Married filing jointly |
|---|---|---|
| $50,000 | $1,5353.1% effective · 3.07% marginal | $1,5353.1% effective · 3.07% marginal |
| $100,000 | $3,0703.1% effective · 3.07% marginal | $3,0703.1% effective · 3.07% marginal |
| $250,000 | $7,6753.1% effective · 3.07% marginal | $7,6753.1% effective · 3.07% marginal |
What is Pennsylvania's income tax rate for 2026?
| Taxable income | Rate |
|---|---|
| All taxable income | 3.07% |
Source: PA DOR — Personal Income Tax Rates, checked September 11, 2026.
Can you deduct Pennsylvania income tax on your federal return?
The federal deduction for state and local taxes (SALT) is capped at $40,400 for 2026 — $20,200 if married filing separately — and the cap shrinks toward $10,000 once modified AGI passes $505,000. A single filer with $250,000 of Pennsylvania taxable income owes about $7,675 in Pennsylvania income tax — 19% of that cap before any property tax.
SALT cap workaroundsDoes Pennsylvania have a pass-through entity tax (PTET)?
No. Pennsylvania has no elective pass-through entity tax, so an owner's Pennsylvania income tax on business profit is paid personally and counts toward the federal SALT cap.
Does Pennsylvania allow the QBI deduction?
No. Pennsylvania does not allow the federal qualified business income (§199A) deduction, so Pennsylvania tax is figured on pass-through business income before it.
How the QBI deduction phases outAre HSA contributions deductible in Pennsylvania?
Yes. Pennsylvania follows the federal treatment, so an HSA contribution — up to $4,400 with self-only coverage or $8,750 with family coverage for 2026 — lowers Pennsylvania taxable income as well as federal.
Does Pennsylvania tax 401(k) contributions?
Yes. Pennsylvania taxes 401(k) elective deferrals as compensation, so the deferral doesn't reduce your PA taxable income. The federal deferral limit for 2026 is $24,500; it lowers federal tax only.
Does Pennsylvania follow federal bonus depreciation?
No. Pennsylvania disallows annual depreciation on rental income for personal income tax; basis is recovered when you sell.
Rental depreciation calculatorCan a rental or business loss offset wages in Pennsylvania?
No. Pennsylvania taxes eight separate classes of income and a loss in one class can't offset income in another, so the loss doesn't reduce the PA tax on your compensation.
Does Pennsylvania give a tax break for 529 plan contributions?
Yes. Pennsylvania lets you deduct up to $19,000 a year of contributions to any state's 529 plan ($38,000 on a joint return). Income limits, per-beneficiary caps and carryforwards differ by state, so check the plan's rules.
529 plan tax savings calculatorWhich states have tax reciprocity with Pennsylvania?
Pennsylvania has mutual agreements with Indiana, Maryland, New Jersey, Ohio, Virginia and West Virginia: neither state taxes the other's residents on wages earned there, so those wages are taxed only where you live. Give your employer the exemption certificate and the state you work in stops withholding.
What is the property tax rate in Pennsylvania?
Pennsylvania's average effective property tax rate is 1.3% — the 12th highest of 51 jurisdictions and 1.4 times the national average of 0.9%. That is about $1,300 a year for every $100,000 of home value; the rate varies widely by county and school district.
Itemize or take the standard deduction?How much does an LLC cost to keep in Pennsylvania each year?
Deductsy budgets about $7 a year for a Pennsylvania LLC — the annual report fee or minimum franchise tax, with a fee due every two years counted at half. Fees change, so confirm with Pennsylvania's business filing office.
Pennsylvania S-corp tax calculatorHow do Pennsylvania taxes compare with neighboring states?
| State | Top income tax rate | Income tax on $100,000 (single) | Property tax (avg) |
|---|---|---|---|
| Pennsylvania | 3.07% | $3,070 | 1.3% |
| Delaware | 6.6% | $5,584 | 0.5% |
| Maryland | 6.5% | $4,698 | 0.97% |
| New Jersey | 10.75% | $4,244 | 2.11% |
| New York | 10.9% | $5,336 | 1.55% |
| Ohio | 2.75% | $2,366 | 1.31% |
| West Virginia | 4.58% | $3,783 | 0.53% |
On $100,000 of taxable income a single filer's Pennsylvania income tax is $3,070 — more than in 1 of 6 neighboring states. The lowest is Ohio at $2,366; the highest is Delaware at $5,584. Pennsylvania's average property tax rate is higher than in 3 of 6.
Income tax is each state's own tax on the same state taxable income; local income taxes are not included.
More Pennsylvania tax notes
- Most Pennsylvania municipalities and school districts add a local Earned Income Tax on top of the state tax.
Tax moves that matter most for Pennsylvania
That is the 12th highest of 51 and 1.4 times the national average, so property tax does much of the work of filling the SALT cap. Bunching two years of property tax into one can push itemized deductions past the standard deduction in alternate years.
An S-corp election can cut self-employment tax once profit is large enough to pay yourself a reasonable salary and still cover payroll and filing costs. The Pennsylvania calculator adds Pennsylvania's own entity fees and taxes to that breakeven.
With 1099 income, a Solo 401(k) can take up to $72,000 a year (2026) — usually more than a SEP-IRA at the same income. Contributions lower both federal and Pennsylvania income tax, except that the employee deferral stays taxable in Pennsylvania.
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