December, 17th 2025
Each state has unique income tax withholding rules. Below are Pennsylvania's 2026 withholding instructions, including allowance calculations, standard deduction adjustments, and the percentage method for determining tax due.
Employers must also adhere to federal income tax withholding rules. More information can be found here about federal rates .
Alternatively, employers can automatically calculate payroll withholding by using ezPaycheck.
| State Abbreviation | PA |
|---|---|
| State Tax Withholding State Code | 42 |
| Acceptable Exemption Form | None |
| Basis For Withholding | Percentage of Annual Wages |
| Acceptable Exemption Data | None |
| TSP Deferred | No |
| Special Coding | None |
| Additional Information | A state tax certificate is not required since the state tax computation is based on a percentage of annual wages. |
| Official State Tax Website | Visit Official Website |
Pennsylvania uses a flat tax rate of 3.07% on all taxable income. A state tax certificate is not required since the state tax computation is based on a percentage of annual wages. Pennsylvania does not use allowances or exemptions in its withholding calculation - the tax is simply a flat percentage of wages.
Annual Tax = Annual Wages × 3.07%
Pennsylvania does not use allowances or exemptions. The tax is calculated as a flat percentage of annual wages, regardless of filing status, dependents, or other factors.
For links to official state tax and revenue websites for all 50 states, visit our State and Local Tax Sites page.
Subtract the nontaxable biweekly Federal Health Benefits Plan payment from the gross biweekly wages.
Subtract the nontaxable biweekly life insurance payment from the adjusted gross biweekly wages.
Add the taxable biweekly fringe benefits to the adjusted gross biweekly wages.
Multiply the adjusted gross biweekly wages times 26 to obtain the annual wages.
Multiply the annual wages by 3.07 percent to calculate the annual Pennsylvania tax withholding.
Annual Tax = Annual Wages × 3.07%
Divide the annual Pennsylvania tax withholding by 26 to obtain the biweekly Pennsylvania tax withholding.
Want to calculate in an easier way? Learn how to calculate Pennsylvania taxes via ezPaycheck below.
Learn MoreRate: 3.07%
Pennsylvania uses a flat tax rate of 3.07% on all taxable income.
ezPaycheck simplifies payroll calculations, including Pennsylvania's withholding rules. Easily compute taxes, generate reports, and print paychecks or tax forms.
We strive to provide accurate and up-to-date Pennsylvania state tax information for 2026. If you notice any discrepancies, errors, or have questions about the tax rates or calculations shown on this page, please contact our support team. We appreciate your feedback and will review and update the information as needed.
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