Pennsylvania Tax Guide for Employers (2026) 

Pennsylvania uses a flat state income tax rate with no deductions or allowances, making it one of the simplest states for income tax withholding. However, the simplicity at the state level is offset by an extensive system of local taxes, including Earned Income Tax (EIT) and Local Services Tax (LST) in many municipalities. 

Pennsylvania imposes a flat state income tax rate of 3.07%. There is no state-specific withholding form, no standard deduction, and no personal allowances. The tax is simply calculated as a flat percentage of gross taxable wages. While state withholding is simple, employers must also manage local Earned Income Tax (EIT) and Local Services Tax (LST) in the employee’s resident and work municipalities. 

Pennsylvania supports the following supplemental calculation methods. When using the flat method, the supplemental rate is 3.07%. 

Your assigned SUTA rate will be based on your company’s experience with unemployment claims. New employers typically start at the default rate of 3.6890%. 

Pennsylvania has local earned income taxes (EIT) administered by over 500 local tax collectors. Employers must withhold based on work location and employee residence.

Follow these steps to begin withholding Pennsylvania payroll taxes for your employees: 

1. Obtain your Federal EIN at irs.gov
2. Register with the Pennsylvania Department of Revenue at mypath.pa.gov
3. Register for SUTA with the Pennsylvania Office of Unemployment Compensation at uc.pa.gov
4. Determine local EIT jurisdiction and register with the applicable local tax collector
5. Submit a Netchex tax team request to enable Pennsylvania SIT, local EIT, and SUTA
6. Have each employee complete their tax forms with an automated onboarding task in Netchex, digitally storing tax forms
7. Configure any additional tax settings in the employee profile

Once setup is complete in Netchex, the system will automatically calculate, withhold, and remit all Pennsylvania payroll taxes on your behalf. 

The following are general filing and deposit deadlines for Pennsylvania payroll taxes. Deadlines may vary based on your employer size and deposit frequency. Always verify current schedules at Pennsylvania Department of Revenue. 

Note: Deadlines are subject to change. Always confirm current requirements directly with Pennsylvania Department of Revenue at https://www.revenue.pa.gov/FormsandPublications/FormsforBusinesses/EmployerWithholding/Pages/default.aspx. 

The following official resources will help you stay current on Pennsylvania payroll tax requirements: 

• Pennsylvania Department of Revenue
• Pennsylvania Local EIT — DCED
• Pennsylvania UC — Employer

Does Pennsylvania have local earned income taxes? 

Yes. Pennsylvania municipalities and school districts levy local earned income taxes (EIT). Rates vary by location; Pittsburgh is 3% total, Philadelphia is 3.75% for residents. 

What form do Pennsylvania employees complete? 

Pennsylvania uses the federal W-4 plus a local EIT form (Residency Certification Form) for local taxes. 

What is Pennsylvania’s SUTA wage base? 

Pennsylvania’s SUTA wage base is $10,000 per employee per year. Verify at uc.pa.gov. 

What is Pennsylvania’s flat income tax rate? 

Pennsylvania’s flat income tax rate is 3.07%. 

What is Pennsylvania’s supplemental withholding rate? 

Pennsylvania taxes supplemental wages at the flat rate of 3.07%.