Pennsylvania paycheck calculator for hourly and salary pay 2025

Calculating paycheck in Pennsylvania

Here’s a step-by-step guide to walk you through the paycheck calculator:

1. Fill in the employee’s details 

This includes just two items: their name and the state where they live. This will help the tool calculate some of the employee’s local taxes.

2. Add the employee’s pay information

You should see fields that say pay type, pay rate, hours worked, pay date, and pay period. Start with “pay type” and select hourly or salary from the dropdown menu. 

If the employee is hourly, input their hourly wage under “pay rate” and fill in the number of hours they worked that pay period. If the employee worked more than 40 hours and thus accrued overtime, record 40 here and save the rest for “additional pay.”

If the employee is salaried, both the “pay rate” and “hours worked” fields will disappear. Instead, you’ll need to know how much the employee makes each pay period. You’ll put that into the field labeled “amount.” 

Then, select the pay date and the employee’s pay frequency—for example, if you pay them weekly or every two weeks. 

3. Input any additional pay the employee receives

If the employee is salaried, you will only see two fields: bonus and commission. Fill in those amounts, if applicable.

If the employee is hourly, you should see four fields: overtime worked, bonus, commission, and salary. This is your opportunity to add any additional pay they should receive this pay period. If the employee earned overtime, input the number of overtime hours they worked. The tool calculates overtime pay using time and a half.

4. Fill in the employee’s federal tax information

This includes the employee’s filing status, number of allowances, and additional withholdings. This is information you should be able to glean from the employee’s W-4 form. If you don’t yet have the employee’s W-4, the payroll calculator can fill in tax rates to help you create a semi-accurate paycheck estimate.

5. Fill in the employee’s state tax information

Again, this includes the employee’s filing status, number of allowances, and additional withholdings. This information can be taken from the employee’s state Form W-4. 

6. Calculate the employee’s paycheck

To see an estimate of the employee’s earnings for the pay period, select “calculate check.”

Pennsylvania income tax rate

Pennsylvania has a flat state income tax, which means that all employees are taxed at the same rate, regardless of their income level. 

For 2024, the Pennsylvania state income tax rate is 3.07%. 

Most municipalities in Pennsylvania also levy a local income tax known as an Earned Income Tax, with rates ranging from 0.312% to 3.75%. These rates are collected based on the employer’s location and the employee’s residence.

Pennsylvania tax withholdings

Pennsylvania law requires the withholding of Pennsylvania personal income tax from the compensation of resident employees for services performed within or outside Pennsylvania. Pennsylvania's personal income tax must also be withheld from the compensation of nonresident employees for work performed within Pennsylvania unless the nonresident lives in a state with which Pennsylvania has a reciprocal tax agreement

Pennsylvania has reciprocal tax agreements with Indiana, Maryland, New Jersey, Ohio, Virginia, and West Virginia. Residents of these states pay state taxes only to their state of residence, while Pennsylvania residents who work in those states pay their state income taxes to Pennsylvania.

In general, whenever federal wage withholding is required for Pennsylvania wages, Pennsylvania wage withholding is required as well. Wages that are exempt from federal wage withholding are generally also exempt from Pennsylvania wage withholding. 

State and federal law does provide exemptions from Pennsylvania wage withholding, including for:

• Agricultural workers not subject to federal Social Security tax withholding
• Nonresident members of the military and spouses
• Nonresident employees of certain interstate carriers

In Pennsylvania, employees and employers share the cost of the state unemployment insurance (SUI) tax, which provides benefits to qualified unemployed or underemployed workers during periods of unemployment through no fault of their own. 

The employer SUI contribution rate is currently 1.419% to 10.3734%, depending on the business’s experience level, and applied to a taxable wage base of $10,000. Employee withholding is set at a flat rate of 0.07% for 2024.

For specific information on how and where to register your business to submit state withholding and unemployment taxes in Pennsylvania, consult our payroll tax map.

In addition to Pennsylvania state income taxes, employers also have to consider federal tax withholdings. Money taken out for federal taxes goes toward federal income taxes, Social Security, and Medicare. An employee’s tax bracket depends on their gross income, excluding pre-tax deductions.

Employers are also responsible for making FUTA (Federal Unemployment Tax Act) payments. This is a federal unemployment tax and is separate from Pennsylvania’s state unemployment tax. It’s based on the wages you pay employees but is NOT deducted from their wages. The business must pay for it.

Opportunities for deductions on Pennsylvania paychecks

Aside from standard federal deductions, there are other common payroll deductions that you may need to apply if you offer benefits. Since employers subtract this income before taxes, these deductions can move employees to a lower tax bracket. 

Some common pre-tax deductions include: 

• Health insurance 
• Dental and vision benefits 
• Health savings account (HSA) 
• Wellness benefits
• Disability insurance 
• Life insurance 
• 401(k) contributions 
• Court-ordered garnishments, including child support, alimony, back taxes, and overdue loans 
• Commuter benefits

Note: Our paycheck calculator only accounts for federal and state deductions. Pre-tax deductions do not factor into our paycheck estimates. If you have questions about these deductions, talk to an accountant or payroll specialist. 

Frequently asked questions 

What are payroll taxes?

Payroll taxes are taxes levied on employers and employees to fund various state and federal programs, including Social Security, Medicare, unemployment benefits, education, defense, construction, and infrastructure maintenance such as roads, parks, and first responder services. Employers must deduct employee contributions from their paychecks and send tax funds to the proper authorities.

How do I calculate taxes from my paycheck in Pennsylvania? 

Follow the steps in Calculating Paycheck in Pennsylvania to make sure your calculation reflects all the relevant factors, including standard annual deductions by marital status and the current Pennsylvania tax rate, which are both subject to change from year to year. (Also, if you have a new pay rate, you can use this tool as a take-home pay calculator to estimate how much money you’ll actually be depositing each pay period.)

How can QuickBooks make Pennsylvania payroll easier?

QuickBooks has multiple features to make Pennsylvania payroll easier:

• Automation reduces tedious manual entries and frees up your time.
• QuickBooks calculates, files, and pays your payroll taxes for you—100% accurate tax calculations guaranteed.
• With tax penalty protection, you’re covered up to $25,000 if you receive a penalty for any reason.
• Your team can get paid fast with same-day direct deposit while you hold onto your cash longer.
• Time tracking can improve timesheet accuracy and streamline approvals.
• Seamless integration of processes can save you hours every week.
• With the Quickbooks Workforce app, your team can track their own hours and view their pay info and W-2s.

Flexible payroll plans for your business

QuickBooks offers flexible payroll plans tailored to your business needs. Whether you want to streamline payday, accurately track time, manage HR tasks, or provide benefits to your team, there's a payroll solution for your Pennsylvania business. 

Existing QuickBooks users can easily add payroll functionalities and leverage the QuickBooks Workforce app for enhanced employee management. Plus, with seamless time tracking and invoicing features, QuickBooks empowers you to stay organized and efficient. Explore QuickBooks payroll today.