Pennsylvania Pay Stub,
Paycheck & Tax Guide

A Pennsylvania paystub must do more than show a final deposit amount. Pennsylvania employers are required to give employees a pay stub each pay period that explains hours worked, rate of pay, gross wages, tax deductions, other authorized deductions and the beginning and ending dates of the pay period.

Pennsylvania payroll is also unusual because state income tax is only one layer. Local Earned Income Tax, Local Services Tax and an employee unemployment compensation contribution can also affect payroll depending on the employee and work location.

Pennsylvania Payroll Starts With the Wage Statement

The state pay-stub requirement gives employees a practical way to check the math behind each wage payment. The statement should connect hours and rates to gross wages then show the deductions that reduce gross pay to the amount received.

• Hours actually worked
• Rate of pay
• Gross wages
• Tax deductions
• Other employee-authorized deductions
• Beginning and ending dates of the pay period

A business that already has verified payroll information can use a Pennsylvania pay stub generator to arrange those figures into an itemized wage record.

State and Local Taxes Can Both Affect a Pennsylvania Paycheck

Pennsylvania personal income tax is withheld at a flat 3.07 percent rate on compensation subject to state withholding. The state rate is only part of the payroll picture because Pennsylvania employers with worksites in the state may also need to withhold local Earned Income Tax and Local Services Tax.

Local Earned Income Tax depends on the employee's resident municipality and work location. Political subdivision codes help employers determine where local withholding should be remitted. The Local Services Tax is also handled through local rules and can be withheld on a payroll-period basis when it applies.

Because local taxes can materially change take-home pay, the Pennsylvania paycheck calculator should be used with the employee's actual work and residence information rather than a statewide rate alone.

2026 Pennsylvania Payroll Snapshot

Why Pennsylvania Income Tax Does Not Work Like Federal Tax

Pennsylvania uses a flat personal income tax rate rather than federal-style graduated brackets. The state also does not simply copy the federal standard deduction and itemized deduction system.

Employers generally withhold 3.07 percent from compensation subject to Pennsylvania withholding. Reciprocal agreements can affect withholding for residents of certain neighboring states, so state withholding should be based on the employee's actual residency and work arrangement.

The Pennsylvania income tax guide covers state taxable income, resident and nonresident treatment plus withholding questions without turning this payroll hub into a full tax-return guide.

Pennsylvania Employees Also Contribute to Unemployment Compensation

Pennsylvania is one of the states where an employee unemployment contribution can appear on the paycheck. The employee contribution rate is 0.07 percent for calendar year 2026.

The employee contribution is calculated from gross wages and is not limited by the employer taxable wage base. Employer unemployment contributions use a different system, so the employee and employer amounts should not be combined as one deduction.

How Net Pay Comes Together in Pennsylvania

Pennsylvania net pay is what remains after applicable federal, state, local and employee deductions are taken from gross wages.

Net Pay = Gross Pay - Federal Withholding - PA Income Tax - Local Taxes - Social Security - Medicare - PA UC Employee Contribution - Other Deductions

This formula is a framework rather than a substitute for payroll rules. Pre-tax benefits can change taxable wages. Local taxes depend on jurisdiction. Additional Medicare Tax can also apply at higher wage levels under federal rules.

Minimum Wage and Overtime in Pennsylvania

Pennsylvania's statewide minimum wage remains $7.25 per hour in 2026. Proposals to raise the wage have continued, but a proposal is not the same as an enacted rate.

Covered nonexempt employees generally qualify for overtime at one and one-half times the regular rate after more than 40 hours worked in a workweek. Regular-rate calculations can include more than the base hourly wage when other forms of compensation must be included.

Sales Tax Belongs to the Transaction Side of the Business

Pennsylvania sales tax is separate from employee payroll. The statewide rate is 6 percent. Taxable purchases in Allegheny County generally include an additional 1 percent local sales tax while Philadelphia adds 2 percent.

A retailer can therefore collect a different combined rate from customers without that tax ever becoming an employee wage deduction. The Pennsylvania sales tax guide explains sales and use tax separately from payroll withholding.

A Pennsylvania Employer Payroll Checklist

Pennsylvania employers need to coordinate state withholding with local tax requirements and wage statement rules. A useful payroll review should cover the entire calculation rather than only the final deposit.

• Confirm worker classification and the applicable pay rate.
• Track compensable hours plus overtime where required.
• Calculate gross wages for the pay period.
• Apply federal withholding and Pennsylvania personal income tax.
• Determine applicable local EIT and LST withholding.
• Calculate Social Security, Medicare and the PA unemployment employee contribution.
• Apply other legitimate deductions.
• Provide the required pay stub for the pay period and retain supporting payroll records.

When Payroll Data Is Ready for a Pay Stub

A pay stub should document a payroll calculation that already reflects real work and real payments. It should not be used to invent wages or change an employee's payment history.

Once the figures have been checked, the check stub generator can organize genuine employer, employee, earnings, tax and deduction information into a professional record. Online PayStub is intended for lawful payroll, business and recordkeeping use.