Basic Info
Deductions
Insurance Premiums
Pennsylvania Paycheck Results
Calculating your paycheck…
Take-Home Pay:
$0.00
Per Pay Period:
$0.00
Tax Breakdown
Federal Income Tax:
$0.00
State Income Tax (PA):
$0.00
Social Security:
$0.00
Medicare:
$0.00
Additional Medicare:
$0.00
Total Tax:
$0.00
Deduction Breakdown
401(k) Contribution:
$0.00
Traditional IRA:
$0.00
HSA Contribution:
$0.00
FSA Contribution:
$0.00
Health Insurance:
$0.00
Dental Insurance:
$0.00
Vision Insurance:
$0.00
Other Deductions:
$0.00
Total Deductions:
$0.00
Gross Annual Income:
$0.00
Effective Tax Rate:
0.00%
Pennsylvania State Income Tax Information
Pennsylvania maintains a flat income tax rate of 3.07% for the 2025 tax year. This rate applies uniformly to all taxable income, regardless of amount or filing status. Unlike many states, Pennsylvania does not offer a standard deduction or personal exemption. However, certain deductions and credits are available to reduce taxable income and liability.
Retirement Income
For retirees, Pennsylvania offers favorable tax treatment on retirement income:
- Social Security Benefits: Fully exempt from state income tax.
- Pension Income: Exempt from state income tax for individuals aged 60 and over.
- 401(k) and IRA Distributions: Exempt from state income tax, provided they are not taken early.
Note: Federal taxes still apply to these income sources.
FICA Taxes
| Tax Component | Rate | Income Limit |
|---|---|---|
| Social Security | 6.2% | Up to $167,700 |
| Medicare | 1.45% | No Limit |
| Additional Medicare | 0.9% | Income above $200,000 (Single) / $250,000 (Married) |
Pre-Tax Deductions
Pennsylvania allows the following pre-tax deductions:
- Contributions to Health Savings Accounts (HSAs)
- Contributions to Medical Savings Accounts (MSAs)
- Contributions to 529 College Savings Plans
- Contributions to ABLE (Achieving a Better Life Experience) Savings Accounts
These deductions are subject to federal limits and rules. Only contributions that are also deductible for federal income tax purposes are allowed for Pennsylvania state tax purposes.
Pennsylvania-Specific Tax Credits
Pennsylvania offers several tax credits to eligible residents:
- Property Tax/Rent Rebate Program: Provides rebates to eligible residents aged 65 and older, widows and widowers aged 50 and older, and individuals with disabilities aged 18 and older. The income limit for this program is $46,520 for the 2025 tax year, adjusted for cost-of-living increases. Rebates range from $380 to $1,000, depending on income and filing status.
- Child and Dependent Care Enhancement Credit: Offers a credit equal to 100% of the federal Child and Dependent Care Tax Credit, up to a maximum of $2,100 for families with two or more children. This enhancement increases the state’s match from 30% to 100% of the federal credit.
- Tax Forgiveness (Special Poverty) Credit: Provides a credit to low-income individuals, including retirees, to reduce or eliminate their state income tax liability.
Interesting Facts About Pennsylvania Taxes
- Pennsylvania has the lowest flat state income tax rate in the United States at 3.07%.
- The state does not tax income from Social Security benefits, pensions, or retirement accounts, making it attractive for retirees.
- Local income taxes may apply in certain municipalities, such as Philadelphia, which has its own wage tax.
Frequently Asked Questions (FAQs)
- Does Pennsylvania tax Social Security benefits?
- No, Social Security benefits are fully exempt from Pennsylvania state income tax.
- What is the standard deduction in Pennsylvania for 2025?
- Pennsylvania does not offer a standard deduction or personal exemption. Taxable income is calculated based on federal adjusted gross income with certain Pennsylvania-specific deductions.
- Are there any tax credits for education-related expenses?
- Yes, Pennsylvania offers a Child and Dependent Care Enhancement Credit, which provides a credit equal to 100% of the federal Child and Dependent Care Tax Credit, up to a maximum of $2,100 for families with two or more children.
- How does Pennsylvania’s income tax system work?
- Pennsylvania employs a flat income tax system with a rate of 3.07% on all taxable income. There are no tax brackets, and the same rate applies regardless of income level or filing status.