Pennsylvania payroll taxes
Every tax withheld from a Pennsylvania paycheck or paid by the employer in 2026, with rates and wage limits.
Last verified November 2, 2026. Sources: news.bloombergtax.com, taxfoundation.org, taxnews.ey.com, oregon.gov.
| Tax | Employee pays | Employer pays | Wage limit |
|---|---|---|---|
| Social Security | 6.2% | 6.2% | $184,500 |
| Medicare | 1.45%* | 1.45% | No limit |
| FUTA | — | 0.6% | $7,000 |
| Pennsylvania SUTA | 0.07% | 3.82% (new) | $10,000 |
| Unemployment Compensation (employee share) | 0.07% | — | No limit |
| Pennsylvania income tax | 3.07% | — | — |
*Plus 0.9% Additional Medicare Tax withheld on wages over $200,000. FUTA rate shown is net of the state credit.
The Pennsylvania SUTA wage base changes to $10,000 in 2027.
State unemployment insurance
Pennsylvania charges new employers 3.82% on the first $10,000 each employee earns in a year. After a few years, the rate is based on the employer's layoff history and ranges from 1.42% to 10.37%. New construction employer rate is 10.5924%. Employee withholding is 0.07% of all wages (no cap). Delinquent employers pay 4.695%-14.4684%.
9.2% surcharge and 0.6% additional contributions tax, included in the rates
Register and file with the Pennsylvania unemployment tax agency.
Paid leave and disability programs
- Unemployment Compensation (employee share): employees pay 0.07%. Employee UC withholding 0.07% of all wages (no cap). Employer SUI separate ($10,000 base).
Income tax withholding
Pennsylvania has a flat income tax of 3.07% on taxable income. Local Earned Income Tax in most municipalities/school districts (typically 0.5%-2%); Philadelphia wage tax ~3.74% resident / ~3.43% nonresident; Pittsburgh 3% (incl. school); plus $52/yr Local Services Tax in many places
Frequently asked questions
- What payroll taxes do employers pay in Pennsylvania?
- Social Security, Medicare, federal unemployment (FUTA) and Pennsylvania unemployment insurance (SUTA).
- What is the Pennsylvania SUTA wage base for 2026?
- $10,000 per employee. It changes to $10,000 in 2027.
- Does Pennsylvania require state income tax withholding?
- Yes. Employers withhold Pennsylvania income tax based on the employee's state withholding certificate or federal W-4.