Pennsylvania Pay Stub Generator -- Free

Pennsylvania's economy spans urban centers and rural communities in ways few states can match. Philadelphia, the nation's sixth-largest city, is home to a major financial sector, world-class universities (Penn, Drexel, Temple), a large healthcare industry, and a growing technology scene. Pittsburgh has transformed from its steel industry roots into a hub for robotics, artificial intelligence, and autonomous vehicle research, anchored by Carnegie Mellon University and the University of Pittsburgh. Between the two major metros, Pennsylvania's extensive rural and suburban communities support manufacturing, agriculture, energy production, and small business employment.

Pennsylvania uses a flat state income tax rate of 3.07%, one of the lower flat rates among states that have income tax. However, Philadelphia residents pay an additional city wage tax, and the Philadelphia non-resident earned income tax applies to people who work in the city but live elsewhere. This generator calculates Pennsylvania state tax and all federal taxes accurately.

Pennsylvania Income Tax Rates

Pennsylvania imposes a flat 3.07% income tax rate on all taxable income for individuals. This rate has been unchanged since 2003, making it one of the most stable income tax rates in the country. Unlike most states, Pennsylvania does not offer a personal exemption or standard deduction at the state level -- the 3.07% applies directly to federal adjusted gross income with certain PA-specific modifications.

Pennsylvania-specific modifications that can reduce taxable income include: contributions to PA 529 college savings plans, certain types of net operating losses from business operations, and distributions from certain retirement accounts that are not taxable in Pennsylvania. Pennsylvania is notably more favorable than most states toward retirement income -- Social Security, most pensions, and 401(k) distributions are not taxed in Pennsylvania once you reach retirement age.

Philadelphia Wage Tax: Philadelphia imposes an Earnings Tax (wage tax) on all wages, salaries, and net profits of Philadelphia residents and on wages earned within Philadelphia by non-residents:

• Philadelphia residents: 3.75% (effective 2024)
• Non-residents working in Philadelphia: 3.44% (effective 2024)

The Philadelphia wage tax is collected by withholding from employee paychecks. Philadelphia workers see both the 3.07% PA state tax and the Philadelphia wage tax on their stubs, making Philadelphia one of the higher total tax burden cities in the country despite Pennsylvania's relatively low state rate.

Does Pennsylvania Require Pay Stubs?

Yes. Pennsylvania law requires employers to provide employees with a written statement of wages and deductions. Under the Pennsylvania Wage Payment and Collection Law (43 P.S. § 260.1 et seq.), employers must provide employees with an itemized pay statement showing gross wages, all deductions, and net wages.

Pennsylvania's wage payment law also prohibits unlawful deductions and requires that all wages be paid in full on regular paydays. The Pennsylvania Department of Labor and Industry investigates wage payment complaints. Employees can file claims for unpaid wages, and the department can order back wages and assess civil penalties.

Pay Stub Requirements in Pennsylvania

A Pennsylvania-compliant pay stub should include:

• Gross wages for the pay period
• All deductions, shown separately by type (federal tax, state tax, city tax if applicable, FICA, voluntary deductions)
• Net wages paid
• Pay period dates
• Employer's name and address
• Employee's name
• Hours worked (for hourly employees)

For Philadelphia workers, the pay stub should separately show the Philadelphia wage tax as a distinct line item from Pennsylvania state income tax. These are two different taxes with different governing bodies (Pennsylvania Department of Revenue vs. City of Philadelphia Revenue Department), and they should never be combined into a single line.

Pay Frequency Laws in Pennsylvania

The Pennsylvania Wage Payment and Collection Law requires that wages be paid at least semi-monthly. Wages earned between the 1st and 15th of the month must be paid by the 22nd of the same month, and wages earned between the 16th and end of the month must be paid by the 7th of the following month.

Pennsylvania employers can also pay weekly or bi-weekly, which many choose to do for operational simplicity. The key requirement is that whichever schedule is established must be followed consistently and communicated to employees in advance.

Pennsylvania requires that employers post a notice of pay frequency in a conspicuous place at the worksite, and that changes to pay frequency be given with at least 30 days' notice.

Pennsylvania Industries and Pay Documentation

Healthcare -- one of Pennsylvania's largest employers: UPMC (University of Pittsburgh Medical Center) alone employs over 95,000 people, making it Pennsylvania's largest private employer. Jefferson Health, Penn Medicine, Temple Health, and dozens of other major systems employ hundreds of thousands across the state. Healthcare workers including nurses, medical technicians, and administrative staff frequently change positions between healthcare systems or work PRN (as needed) at multiple facilities. Generating stubs that accurately reflect income from multiple sources is a common need for healthcare workers seeking housing.

Manufacturing: Pennsylvania's manufacturing sector includes specialty chemicals (Air Products, PPG Industries), medical devices, food processing, and defense-related manufacturing. Many manufacturing workers have complex pay stubs that include base wages, overtime, shift differentials, and quarterly production bonuses. See our hourly pay stub template for how to structure stubs with multiple earnings types.

Energy: Pennsylvania is the second-largest natural gas producing state, with extensive Marcellus and Utica shale operations in the north-central and southwestern parts of the state. Oil and gas workers, pipeline construction crews, and compressor station operators often work on project-based contracts that do not generate traditional pay stubs.

Philadelphia's diverse economy: Comcast is headquartered in Philadelphia, as is Jefferson Health and SEPTA (the regional transit authority). The city has a large hospitality and tourism sector and an active gig economy. DoorDash, Uber Eats, and Lyft all have significant operations in Philadelphia. Gig workers in the Philadelphia area need pay stub documentation for the competitive rental market.

What a Pennsylvania Paycheck Looks Like -- A Worked Example

A healthcare and manufacturing worker earning $55,000 per year in Pennsylvania on a bi-weekly schedule ($2,115 gross per check) pays: $65 in Pennsylvania income tax (3.07% flat rate), $131 in Social Security (6.2%), $31 in Medicare (1.45%) -- net take-home approximately $1,710 per paycheck.

2024 minimum wage in Pennsylvania: $7.25/hr (federal minimum; Pennsylvania has no higher state minimum). Philadelphia workers earning in Philadelphia owe the Philadelphia Earnings Tax (3.75% resident / 3.44% non-resident) in addition to state tax.

Frequently Asked Questions for Pennsylvania Workers

I live in New Jersey and work in Philadelphia. How does the wage tax work?

As a non-resident working in Philadelphia, you pay the Philadelphia non-resident earned income tax (3.44% in 2024) on wages earned in Philadelphia. New Jersey has a reciprocity agreement with Pennsylvania that means you only file a New Jersey income tax return -- not a Pennsylvania one -- for your Philadelphia wages. However, the Philadelphia city wage tax is separate from Pennsylvania state tax and is NOT covered by the reciprocity agreement, so you still owe Philadelphia city wage tax on your Philadelphia earnings. New Jersey provides a credit for taxes paid to Pennsylvania that partially offsets this. Philadelphia residents who then move to New Jersey still owe Philadelphia city tax on their Philadelphia-earned wages for the portion of the year they lived in Philadelphia.

How is Pennsylvania different from other states for retirement income?

Pennsylvania is extremely favorable for retirees. Most retirement income is exempt from Pennsylvania income tax, including Social Security benefits, distributions from 401(k) plans, IRAs, and most pension payments. This is why Pennsylvania is a popular retirement destination despite having a state income tax. For current workers, this means contributions to 401(k) accounts still reduce federal taxable income but may not reduce PA taxable income in the same way -- Pennsylvania taxes compensation broadly but then exempts retirement distributions later. When generating pay stubs, your 401(k) deferrals reduce your federal taxable income but typically do not reduce your Pennsylvania taxable income (Pennsylvania taxes 401(k) contributions as current income).

Does Pennsylvania have any state programs like SDI that appear on pay stubs?

Pennsylvania does not have state disability insurance, state paid family leave deductions, or a state unemployment insurance deduction on employee pay stubs. Unemployment insurance in Pennsylvania is an employer-only cost (SUI) that does not appear as an employee withholding. Workers who need short-term disability coverage must purchase private insurance or rely on employer-provided plans. This contrasts with New Jersey, New York, and California which all have employee-funded state disability programs. Pennsylvania's payroll deductions are limited to PA income tax (3.07%) and any local earned income taxes.

Pennsylvania has local earned income taxes beyond Philadelphia. How do those work?

Pennsylvania has a complex local tax system. Most municipalities levy a local Earned Income Tax (EIT) through a network of local tax collection authorities. The rates vary by municipality -- typically 1% to 3% for most areas outside Philadelphia. The local EIT is collected by the local tax collector (often the county's tax collection bureau) rather than withheld by employers in all cases, though many employers do withhold it. If your employer does not withhold local EIT, you may need to make quarterly estimated payments. Check with your municipality's tax authority or your employer's payroll department about local tax withholding in your specific location.

I'm a contractor at a Philadelphia consulting firm. How do I handle the Philadelphia wage tax?

If you are a true independent contractor (W-9, 1099-NEC), the Philadelphia wage tax applies to self-employment income earned in Philadelphia through the Philadelphia Business Income and Receipts Tax (BIRT) and the Net Profits Tax (NPT), not the Earnings Tax (which applies to employees). The rules are complex and depend on where you perform the work -- if you work physically in Philadelphia as an independent contractor, the NPT may apply. If you work remotely for a Philadelphia client, different rules may apply. Consult a Philadelphia-licensed CPA for your specific situation, and see our self-employed pay stub generator for how to document contractor income.

Related Tools

For neighboring state comparisons, see the New York pay stub generator (higher rates, complex local taxes), the New Jersey pay stub generator (reciprocity with PA, high rates), or the Maryland pay stub generator (similar structure with county taxes). The salary pay stub template covers how to document salaried income properly.