Pennsylvania Employer Payroll Tax Calculator

2026 Pennsylvania Payroll Tax Calculator

Pennsylvania Payroll Tax Calculator

Estimate Pennsylvania take-home pay and employer payroll cost with federal withholding, FICA, Pennsylvania personal income tax withholding, PA unemployment compensation employee withholding, local earned income tax, local services tax, employer UC, FUTA, and optional workers compensation or employer burden costs.

Payroll Inputs

Rates refreshed: May 27, 2026

Pay Setup

Gross pay and frequency

Pay type

Pay frequency

YTD subject wages before this check Used for Social Security, Additional Medicare, FUTA, and PA employer UC wage-base caps.

Annual salary

Hourly rate

Regular hours this check

Overtime hours this check

Double-time hours this check

Bonus, commission, or extra pay

Deductions

Amounts withheld from this paycheck

Pre-tax benefits Health, FSA, HSA, or cafeteria deductions assumed to reduce federal income tax and FICA wages.

Pre-tax retirement Assumed to reduce federal income-tax wages but not FICA wages.

Post-tax deductions

Federal W-4

IRS 2026 automated method

Federal filing status

W-4 Step 2 checkbox Federal income tax exempt

Step 3 annual credits

Step 4(a) other income

Step 4(b) extra deductions

Step 4(c) extra withholding

Use federal supplemental flat rate for bonus

Pennsylvania Withholding

PA PIT, local EIT, LST, and allocation

Pennsylvania wage allocation Use 100% for PA residents or employees whose wages are fully earned in Pennsylvania.

PA withholding profile Reciprocal states: IN, MD, NJ, OH, VA, and WV.

PA taxable wage reduction Enter only deductions or wage amounts that should be excluded from PA taxable compensation.

Additional PA withholding

PA personal income tax exempt

Local Payroll Taxes

EIT, Philadelphia wage tax, and LST

Local withholding profile Use the DCED address lookup for exact PSD, EIT, and LST rates.

Resident EIT rate Percent from the employee's home municipality.

Worksite nonresident EIT rate Act 32 uses the higher of resident EIT and worksite nonresident EIT.

Philadelphia wage tax rate Optional. Enter the current resident or nonresident Philadelphia rate when applicable.

Additional local withholding

Annual Local Services Tax Most LST is capped at $52 per year; rates over $10 are generally withheld per payroll period.

YTD LST already withheld

Apply LST low-income exemption

Employer Taxes

PA UC, FUTA, workers comp, and load

PA UC employer rate 2026 newly liable non-construction rate is 3.8220%; construction is 10.5924%.

Net FUTA rate

Workers comp estimate Optional employer-paid percentage for Pennsylvania workers compensation estimates.

Other employer load Optional percentage for benefits, local payroll cost, or other employer burden.

Employee Withholding

Federal income tax$0.00

Social Security$0.00

Medicare$0.00

Additional Medicare$0.00

Pennsylvania state income tax$0.00

PA UC employee withholding$0.00

Local EIT or Philadelphia wage tax$0.00

Local Services Tax$0.00

Taxable Wage Bases

FIT taxable wages$0.00

FICA taxable wages$0.00

PA taxable compensation$0.00

PA allocated gross wages$0.00

Local taxable wages$0.00

Social Security taxed this check$0.00

PA UC employer taxed this check$0.00

FUTA taxed this check$0.00

Employer Cost

Employer Social Security$0.00

Employer Medicare$0.00

Pennsylvania unemployment compensation$0.00

FUTA$0.00

Workers comp estimate$0.00

Other employer load$0.00

2026 Pennsylvania Payroll Rule Snapshot

For Pennsylvania payroll estimates

State income tax 3.07% flat withholding Pennsylvania requires withholding on resident compensation and nonresident Pennsylvania-source compensation unless reciprocal-state rules apply.

Local earned income tax Higher EIT rate applies Act 32 compares the employee's total resident EIT rate with the worksite nonresident EIT rate and withholds the higher rate.

Local Services Tax Generally capped at $52 The calculator prorates annual LST by pay frequency and supports the low-income exemption toggle.

PA unemployment UC to $10,000 Includes employee UC withholding at 0.07% of gross wages with no cap and employer UC on the first $10,000 of wages.

Tax or contribution	Who pays	2026 rule used	Calculator treatment
Federal income tax	Employee withholding	IRS Publication 15-T automated percentage method.	Annualizes taxable wages, applies W-4 status, Step 2, Step 3, Step 4(a), Step 4(b), and Step 4(c). Optional bonus mode uses the federal supplemental flat rate.
Pennsylvania personal income tax	Employee withholding	3.07% flat Pennsylvania withholding rate on taxable compensation.	Applies the Pennsylvania rate to allocated PA taxable compensation, supports reciprocal-state resident exemption, additional PA withholding, and a PA taxable wage reduction input for wage types or deductions excluded from PA compensation.
Local EIT and Philadelphia wage tax	Employee local withholding	DCED Act 32 guidance uses the higher of resident EIT and worksite nonresident EIT; Philadelphia wage tax is handled separately.	Lets the user enter resident EIT, worksite nonresident EIT, or a Philadelphia wage tax rate rather than assuming one municipality's rate applies statewide.
Local Services Tax	Employee local withholding	Annual LST is generally capped at $52; LST over $10 is withheld on a payroll-period basis and low-income exemptions may apply.	Prorates the annual LST by pay frequency, caps withholding by YTD LST already withheld, and allows the low-income exemption to turn off LST for planning.
Pennsylvania unemployment compensation	Employee and employer	Employee UC withholding is 0.07% of gross wages with no cap. Employer UC wage base is $10,000; newly liable non-construction rate is 3.8220%, and newly liable construction rate is 10.5924%.	Applies employee UC to gross wages and employer UC to wages remaining under the $10,000 wage base using the editable employer rate.
Workers comp and other employer load	Employer	Pennsylvania workers compensation premiums vary by coverage, classification, payroll, carrier rate, and experience.	Uses optional employer-entered percentages so the payroll tax result can include estimated workers comp, benefits, or other employer burden.

This calculator is a planning estimate, not payroll tax, legal, or accounting advice. Real payroll can differ because of Pennsylvania compensation rules, reciprocal-state forms, nonresident work allocation, Act 32 PSD codes, Philadelphia wage tax treatment, LST exemptions, employer-specific UC rate notices, taxable fringe benefits, pre-tax deduction treatment, workers compensation classifications, and supplemental wage methods.

Primary references: IRS Publication 15-T, IRS Publication 15, Pennsylvania employer withholding, Pennsylvania Personal Income Tax Guide withholding section, PA DCED Act 32 local income tax information, PA DCED local withholding tax FAQs, PA DCED Local Services Tax guidance, PA DLI yearly UC tax highlights, PA DLI calculating contributions, and PA Business One-Stop workers compensation guidance.

Found our Free Pennsylvania Employer Payroll Tax Calculator useful? Bookmark and share it.

Disclaimer: The content provided on this webpage is for informational purposes only and is not intended to be a substitute for professional advice. While we strive to ensure the accuracy and timeliness of the information presented here, the details may change over time or vary in different jurisdictions. Therefore, we do not guarantee the completeness, reliability, or absolute accuracy of this information. The information on this page should not be used as a basis for making legal, financial, or any other key decisions. We strongly advise consulting with a qualified professional or expert in the relevant field for specific advice, guidance, or services. By using this webpage, you acknowledge that the information is offered “as is” and that we are not liable for any errors, omissions, or inaccuracies in the content, nor for any actions taken based on the information provided. We shall not be held liable for any direct, indirect, incidental, consequential, or punitive damages arising out of your access to, use of, or reliance on any content on this page.

Trusted By

Trusted by 3.4M+ Employees: 23 Years of Service Across Startups to Fortune 500 Enterprises

Join our ever-growing community of satisfied customers today and experience the unparalleled benefits of TimeTrex.

Strength In Numbers

Join The Companies Already Benefiting From TimeTrex

Users

Companies

Years

Time To Clock-In

Start your 30-day free trial!

Experience the Ultimate Workforce Solution and Revolutionize Your Business Today

Saving businesses time and money through better workforce management since 2003.