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PaycheckDesk

Pennsylvania · tax year 2026

Does Pennsylvania tax tips and overtime?

Neither deduction reduces your state tax.

Pennsylvania taxes compensation at a flat 3.07% with no standard deduction and no personal exemption, so the first dollar is taxed like the last. Tips are fully taxable and neither federal deduction reduces the bill. One thing to watch: Pennsylvania taxes 401(k) contributions as you make them, so that money lowers your federal tax but not your state tax. Low earners may qualify for Pennsylvania tax forgiveness, which this calculator does not include.

What it means on a real paycheck

Take a single filer earning $50,000 a year, $8,000 of it in tips. Against the same person with no tips to declare, the federal deduction is worth $960.

In Pennsylvania it is worth nothing extra. The state bill is identical either way, so $960 is the whole of it.

How Pennsylvania works out the tax

Pennsylvania charges a flat 3.07%. It builds your income its own way rather than starting from your federal adjusted gross income.

Worth knowing about Pennsylvania

Money you put into a 401(k) is still taxed

Almost everywhere, a traditional 401(k) contribution lowers your state income tax as well as your federal. Not here. The contribution comes out of your federal income and stays in your state income, so the same paycheck box saves you less than you would expect. Section 125 health premiums do still come out.

Your own numbers

Your gross pay before any taxes or deductions.

Married filing separately cannot claim these deductions at all, so it is not offered here.

Traditional, pre-tax. Lowers income tax but not Social Security or Medicare.

Pre-tax cafeteria-plan premiums. These lower income tax and FICA.

Take-home pay per paycheck (26 per year)

$1,927

$50,094 a year after taxes and deductions.

Pennsylvania taxes compensation at a flat 3.07% with no standard deduction and no personal exemption, so the first dollar is taxed like the last. Tips are fully taxable and neither federal deduction reduces the bill. One thing to watch: Pennsylvania taxes 401(k) contributions as you make them, so that money lowers your federal tax but not your state tax. Low earners may qualify for Pennsylvania tax forgiveness, which this calculator does not include. See what that costs you →

Where the money goes each year

Gross salary$62,000
Federal income taxTop rate applied: 12%−$5,260
Social Security−$3,844
Medicare−$899
State income tax (PA)Flat 3.07% on $62,000 of state taxable income−$1,903
Take-home pay$50,094

Per paycheck

Gross$2,385
Taxes withheld−$458
Net$1,927

Estimate for tax year 2026 assuming the standard deduction, no dependents or credits, and even pay across the year. Your employer withholds using your Form W-4, so an individual paycheck can differ. Effective total tax rate: 19.2%. Not tax advice.

Where these figures come from

Pennsylvania’s rates and reliefs here were taken from Pennsylvania’s own publication and last checked on 2026-08-02. A state appears in this calculator only once its figures have been read off that state’s own paperwork and covered by tests — never estimated, and never copied from another site.

Figures on this page are for tax year 2026 and were last checked against the primary sources on 2026-07-31. See our sources. This is an estimate, not tax advice.

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