Bonus Tax Calculator — Pennsylvania (2026)
Bonuses in Pennsylvania are taxed as supplemental wages: the employer usually withholds a flat 22% federal, plus 7.65% FICA and Pennsylvania state withholding. Withholding is not the final tax; the true cost is settled on your return. Enter your bonus to see both. Pennsylvania uses a flat personal income tax of 3.07% applied to taxable income after a state standard deduction of $0.
Pennsylvania Bonus Tax Calculator
The gross bonus before withholding.
Percentage method vs aggregate method
Under the percentage method the bonus is separated from regular pay and hit with the flat 22% federal rate (37% above $1 million of supplemental wages in a year). Under the aggregate method the employer combines the bonus with your normal check and withholds at your marginal rate — which can temporarily withhold far more than 22%.
Either way the bonus is ordinary income. If your marginal federal bracket is 24% or higher, the 22% flat withholding leaves you short at filing time; if you are in the 12% bracket, you are over-withheld and get it back as a refund.
The Pennsylvania layer on bonuses
Pennsylvania taxes bonus income at the same flat rate as salary — up to 3.07%. A $10,000 bonus therefore carries roughly $307 of Pennsylvania tax at the top rate, on top of federal and FICA.
Most PA municipalities levy a local Earned Income Tax (EIT) of about 1%. Philadelphia residents pay 3.75% city wage tax; Pittsburgh residents pay 3%.
Reducing the tax on a Philadelphia bonus
Deferring part of the bonus into a 401(k) or HSA cuts federal and Pennsylvania income tax immediately, though FICA still applies. Some employers allow a separate bonus deferral election — ask payroll before the payment date, not after.
Timing matters too: pushing a bonus into January shifts the tax year, useful if this year included unusually high income from healthcare work or an equity event.
Local and payroll taxes Pennsylvania adds on top
Local Earned Income Tax of roughly 1%–3.9% applies almost everywhere, plus a 0.07% unemployment employee contribution. That deduction sits outside the federal and state income tax lines, so build it into your own budget on top of the numbers above.
Most PA municipalities levy a local Earned Income Tax (EIT) of about 1%. Philadelphia residents pay 3.75% city wage tax; Pittsburgh residents pay 3%.
Bonuses are wages, so every local layer that applies to your regular Pennsylvania paycheck applies to the bonus too — which is why a supplemental payment often nets a smaller share than your salary does.
Working across a state line from Pennsylvania
Pennsylvania holds income-tax reciprocity agreements with Indiana, Maryland, New Jersey, Ohio, Virginia and West Virginia. If you commute between them, your wages are taxed only by your state of residence — file the exemption certificate with your employer so the wrong state is not withheld from every paycheck.
Remote and hybrid work complicates this further: most states tax income where the work is physically performed, so a Philadelphia resident spending part of the year at a client site in New Jersey may owe a nonresident return there. Keep a day-count log if you split time between states.
The rest of your Pennsylvania tax bill
Pennsylvania charges a 6% state sales tax, homeowners pay an average effective property tax of 1.49% of market value, and the minimum wage in force during 2026 is $7.25 an hour.
Philadelphia adds 2% and Allegheny County 1% on top of the 6% state rate.
Income tax is only one part of a state's take. Pennsylvania recovers revenue through sales and property tax as well, which is why headline income tax rates alone are a poor guide to how far a salary really goes. Pennsylvania does not tax Social Security, pensions or retirement distributions after 59½ — one of the most retiree-friendly states.
Pennsylvania vs New Jersey on the same salary
On a $75,000 salary, a single filer keeps about $59,290 a year in Pennsylvania against roughly $58,941 in New Jersey — a difference of $349, or $29 a month.
Effective combined rates are 20.9% in Pennsylvania and 21.4% in New Jersey. Set that gap against living costs: index 95 here versus 114 there, with property tax at 1.49% and 2.23% respectively.
Pennsylvania income tax brackets 2026 (single filer)
| Taxable income | Rate |
|---|---|
| $0 and up | 3.07% |