Pennsylvania taxes and cost of living (2026)
Pennsylvania has a flat 3.07% income tax. A $100,000 salary is worth about $68,401 a year in national buying power after every tax and Pennsylvania's prices, #34 of 51 (the state average is $70,397). Retiring on $50,000 a year takes about $1.29M, #29 lowest.
- State income tax
- 3.07%
- Sales tax (avg. combined)
- 6.34%
- Property tax (effective)
- 1.16%
- Cost of living
- 97.6
- US = 100
- Social Security taxed?
- No
- Median home
- $278K
Take-home pay in Pennsylvania
Single filer, 10% of salary to a pre-tax 401(k), standard deduction, renting. All taxes include estimated sales tax.
| Salary | Federal | FICA | State + local | All-in tax rate | Take-home | In US dollars |
|---|---|---|---|---|---|---|
| $50,000 | $3,220 | $3,825 | $2,320 | 19.7% | $35,635 | $36,522 |
| $75,000 | $6,020 | $5,738 | $3,480 | 21.3% | $52,263 | $53,563 |
| $100,000 | $10,970 | $7,650 | $4,640 | 24.2% | $66,740 | $68,401 |
| $150,000 | $21,134 | $11,475 | $6,960 | 27.4% | $95,431 | $97,806 |
| $250,000 | $43,304 | $15,514 | $11,600 | 29.2% | $154,582 | $158,429 |
What it takes to retire in Pennsylvania
Married couple, age 60, withdrawals 60% from 401(k)/IRA, 20% Roth, 20% brokerage, no Social Security yet, renting. Spending at US-average prices.
| Spending | At PA prices | Income taxes | All taxes | FI number |
|---|---|---|---|---|
| $40,000 | $39,029 | $120 | $912 | $978.7K |
| $60,000 | $58,543 | $504 | $1,692 | $1.48M |
| $80,000 | $78,058 | $1,818 | $3,401 | $2.00M |
| $120,000 | $117,086 | $4,789 | $7,165 | $3.05M |
Pennsylvania tax rules at a glance
- Income tax: Pennsylvania has a flat 3.07% income tax. Flat 3.07% on gross taxable income in eight classes; no standard deduction or exemption. Losses in one class can't offset another. Tax Forgiveness (Schedule SP) eliminates tax for very low incomes (about $6,500 single / $13,000 MFJ + $9,500 per dependent). Employee 401(k)/403(b) contributions are NOT deductible.
- Payroll: PA Unemployment Compensation (employee share): 0.07% of wages.
- Local income tax: Nearly all municipalities/school districts levy an Earned Income Tax on wages, usually 1% combined (0.5% municipal + 0.5% school) but often higher: Philadelphia wage tax 3.74% resident (3.735% from July 1, 2026), Pittsburgh 3%, Scranton ~3.4%, Reading 3.6%. 1.5% is a rough population-weighted estimate. Plus Local Services Tax up to $52/yr.
- Social Security: Not taxed. Fully exempt.
- Retirement income: Pension and 401(k) distributions after meeting the plan's retirement conditions (age/years of service), and IRA distributions after age 59.5, are fully exempt.
- Capital gains: Taxed at the flat 3.07% rate.
- Sales tax: 6.00% state rate, 6.34% average with local taxes; groceries exempt.
Compare Pennsylvania with
Frequently asked questions
Does Pennsylvania have a state income tax?
Pennsylvania has a flat 3.07% income tax. Flat 3.07% on gross taxable income in eight classes; no standard deduction or exemption. Losses in one class can't offset another. Tax Forgiveness (Schedule SP) eliminates tax for very low incomes (about $6,500 single / $13,000 MFJ + $9,500 per dependent). Employee 401(k)/403(b) contributions are NOT deductible.
How much is $100,000 after taxes in Pennsylvania?
A single filer earning $100,000 who puts $10,000 in a 401(k) takes home about $66,740 after federal, state and local income taxes and payroll taxes, an all-in effective rate of 24.2% including estimated sales tax.
Does Pennsylvania tax Social Security?
No. Pennsylvania does not tax Social Security benefits. Fully exempt.
How much do you need to retire in Pennsylvania?
To spend $50,000 a year (at US-average prices) with withdrawals mostly from a 401(k)/IRA, you'd need about $1.29M in Pennsylvania using the 4% rule, after its cost of living and taxes.
Is Pennsylvania expensive to live in?
Pennsylvania's cost of living index is 97.6, where the US average is 100 (BEA Regional Price Parities, 2024). The median home is worth about $277,600 and median rent is $1,252 a month.
How this is calculated
- Income taxes use 2026 federal and state brackets, standard deductions and personal exemptions or credits. No itemized deductions or other credits. Local income taxes use a typical statewide rate (for example, Maryland's county taxes or New York City's); many places have none.
- Payroll taxes include Social Security (6.2% up to the wage base), Medicare, and employee-paid state programs such as California SDI or Washington's paid leave premium. A married household salary is treated as two equal earners for payroll-tax caps.
- Cost of living uses the Bureau of Economic Analysis's Regional Price Parities (2024), where the US average is 100. Spending you enter at national prices is scaled by each state's index.
- Sales tax is estimated as the average combined state and local rate on about a third of spending (more where groceries are taxed). It is shown for context but not added to costs, because the price parities already include it. Property tax applies the state's effective rate to its median home value (Census ACS 2024) if you own.
- Retirement solves for the withdrawal that covers your spending plus the taxes it triggers, using each state's treatment of Social Security, retirement-account withdrawals and capital gains, then multiplies by 25 (a 4% withdrawal rate).
- Years to FI starts from zero, adds what you save each year in that state, and grows it at a 5% real return until it reaches that state's FI number.
Estimates for comparison, not tax advice. Your actual taxes depend on deductions, credits, where in the state you live and more. Sources: BEA Regional Price Parities, Census ACS, state sales tax rates, IRS, state revenue departments (per state).