Reading a Pennsylvania pay stub, line by line
Pennsylvania stubs confuse more workers than almost any other state — not because rates are high, but because there are more lines: PA is one of only three states where employees pay unemployment tax, and virtually every PA municipality taxes your paycheck locally. Here's the full decoder for 2026:
PA / PA SIT (state income tax). A flat 3.07% on every dollar of compensation — Pennsylvania has no standard deduction and no personal exemption, so unlike federal tax, it starts from your first dollar. (Low earners can claim Tax Forgiveness at filing time.)
PA UC-EE (also shown as PA SUI or PA UC). The employee share of unemployment compensation: 0.07% of gross wages in 2026 — 70 cents per $1,000, with no cap. Only Pennsylvania, New Jersey, and Alaska charge employees for unemployment insurance.
Local EIT (often shown with your town or collector's name — e.g., "Berkheimer," "Keystone"). Under Act 32, nearly every PA municipality and school district levies an Earned Income Tax that your employer must withhold. The typical combined rate is 1%; big cities run higher (Pittsburgh residents 3%, Scranton 3.4%). Your Box 20 on the W-2 carries a 6-digit PSD code identifying your tax jurisdiction.
LST (Local Services Tax). That odd $1–$2 per check: a flat local levy capped at $52 per year total, withheld pro-rata each pay period. Earn under $12,000 in the jurisdiction? You can claim an exemption or refund. (On old stubs this was called OPT or EMST.)
Philadelphia Wage Tax (Philly workers and residents). Separate from Act 32: 3.735% for residents, 3.425% for non-residents as of July 1, 2026 — the city is stepping the rate down annually, so double-check any stub still showing 3.74%/3.43%.
Plus the standard federal lines: federal income tax, Social Security (6.2% up to $184,500), Medicare (1.45%).
Pennsylvania paycheck facts — 2026
| Item | 2026 value |
|---|---|
| State income tax | Flat 3.07% — no standard deduction |
| PA UC-EE (employee) | 0.07% of gross, no cap |
| Local EIT | ~1% typical; Pittsburgh 3%; Scranton 3.4% |
| Philadelphia wage tax | 3.735% resident / 3.425% non-resident (from Jul 1, 2026) |
| LST | Up to $52/year, withheld ~$1–2 per check |
| Minimum wage | $7.25/hr (a $15 bill passed the House, not yet law) |
| Pay frequency law | Regular designated paydays; lag ≤ 15 days |
| Pay stub required? | Yes — itemized statement each pay period |
What you actually take home in Pennsylvania (2026 estimates)
Estimated for a single filer taking the federal standard deduction, including federal tax, Social Security, Medicare, PA tax, PA UC-EE, a typical 1% local EIT, and the $52 LST:
| Gross pay | Est. net per year | Net biweekly | Net monthly | Effective tax |
|---|---|---|---|---|
| $40,000 | $32,612 | $1,254 | $2,718 | 18.5% |
| $60,000 | $47,854 | $1,841 | $3,988 | 20.2% |
| $75,000 | $58,436 | $2,248 | $4,870 | 22.1% |
| $100,000 | $74,988 | $2,884 | $6,249 | 25.0% |
| Minimum wage, full-time ($7.25/hr) | $13,250 | $510 | $1,104 | 12.1% |
Philadelphia residents (3.735% wage tax instead of the 1% EIT):
| Gross pay | Est. net per year | Net biweekly | Effective tax |
|---|---|---|---|
| $40,000 | $31,518 | $1,212 | 21.2% |
| $60,000 | $46,213 | $1,777 | 23.0% |
| $75,000 | $56,384 | $2,169 | 24.8% |
| $100,000 | $72,253 | $2,779 | 27.7% |
Living in Philadelphia costs a $60,000 earner about $1,641 a year more in paycheck taxes than a typical PA town — the wage tax is the single biggest line difference in the state.
Methodology: 2026 federal brackets and $16,100 standard deduction (IRS Rev. Proc. 2025-32), FICA per SSA, PA flat 3.07% with no state deduction, UC-EE 0.07%, LST $52. Estimates only — your local EIT rate may differ (check your PSD code); withholding depends on your W-4, credits, and pre-tax benefits.
What Pennsylvania jobs pay (BLS, May 2025)
| Occupation | Median hourly | Median annual |
|---|---|---|
| Registered nurse | $46.36 | $96,430 |
| Software developer | $60.84 | $126,550 |
| Elementary school teacher | — | $77,060 |
| Truck driver (heavy) | $28.16 | $58,580 |
| Construction laborer | $23.75 | $49,400 |
| Customer service rep | $21.46 | $44,630 |
| Waiter / waitress (tips included) | $16.68 | $34,690 |
| Retail salesperson | $15.00 | $31,200 |
Pennsylvania's median hourly wage across all occupations is $23.89 (national: $24.51).
Pennsylvania's workforce in numbers
- 13.1 million residents, civilian labor force of 6.6 million (Census 2025 estimate; BLS, June 2026)
- 955,359 self-employed (nonemployer) businesses (Census, 2023) — nearly a million Pennsylvanians earning without an employer pay stub
- Mean annual wage: $65,730 (BLS OEWS, May 2025)
Pennsylvania pay rules — the answers people actually need
Final paycheck: due by the next scheduled payday whether you quit, were laid off, or were fired (Wage Payment and Collection Law). Same rule in all three cases — simpler than California's or Texas's split deadlines.
Pay frequency: wages must be paid on regular paydays designated in advance, and the gap between the end of a pay period and payday can't exceed 15 days (or the contractual/customary norm).
Is a pay stub required? Yes. PA requires a statement with each pay period showing hours worked, pay rate, gross wages, tax deductions, other authorized deductions, and the pay-period dates. With five-plus tax lines on a typical PA stub, that itemization matters more here than almost anywhere.
Why your PA neighbor's stub looks different from yours
Two PA workers with identical salaries can have visibly different paychecks — the local layer does it:
- Most of the state: ~1% EIT (0.5% township + 0.5% school district) + $52 LST
- Pittsburgh residents: 3% (1% city + 2% school district)
- Scranton residents: 3.4%
- Philadelphia: 3.735% city wage tax replaces EIT entirely — and commuters into Philly from anywhere (even out of state) still pay 3.425%
Your 6-digit PSD code (W-2 Box 20) is what determines your rate. Wrong PSD code = wrong tax — one of the most common PA payroll errors, and worth checking on every new job's first stub.
How Pennsylvania compares (take-home on $60,000, 2026 est.)
| State | Est. net/year | Difference vs PA |
|---|---|---|
| Pennsylvania (typical, 1% EIT) | $47,854 | — |
| Philadelphia resident | $46,213 | −$1,641 |
| New York | $47,457 | −$397 |
| Florida (no state income tax) | $50,390 | +$2,536 |
PA's flat 3.07% looks low, but the local layer narrows the gap with bracket states: a typical PA worker's total state+local bite at $60k (~4.2%) lands close to New York's state tax alone.
FAQ
What is PA UC-EE on my pay stub?
The employee share of Pennsylvania unemployment compensation — 0.07% of gross wages in 2026 (70 cents per $1,000), with no wage cap. PA is one of only three states where employees contribute to unemployment insurance.
What is LST on my Pennsylvania paycheck?
The Local Services Tax — a flat municipal levy capped at $52 per year, withheld about $1–$2 per check. Workers earning under $12,000 in the jurisdiction can claim an exemption. Older stubs called it OPT or EMST.
What is the Philadelphia wage tax in 2026?
As of July 1, 2026: 3.735% for Philadelphia residents and 3.425% for non-residents who work in the city. The city is reducing the rate slightly each year.
How much tax comes out of a paycheck in Pennsylvania?
A single filer at $60,000 with a typical 1% local tax keeps about $47,854 — roughly $1,841 per biweekly check, a 20% effective rate covering federal, FICA, PA's flat 3.07%, local EIT, UC-EE, and LST.
Why does PA tax my whole paycheck from dollar one?
Pennsylvania's 3.07% flat tax has no standard deduction or personal exemption, so it applies to all compensation. Lower earners can recover some of it through the Tax Forgiveness credit (Schedule SP) at filing time.
When is my final paycheck due in Pennsylvania?
By the next regularly scheduled payday, whether you quit or were terminated, under the Wage Payment and Collection Law.
What is the PSD code on my W-2?
A 6-digit code (Box 20) identifying your local tax jurisdiction under Act 32 — first two digits: tax collection district; first four: school district; all six: your municipality. It determines which local EIT rate you pay.