{
  "$comment": "Pennsylvania 2026: flat 3.07% personal income tax on PA-taxable compensation (no standard deduction or personal exemptions); 401(k)/403(b)/457(b) employee deferrals and dependent-care reimbursement contributions are PA-taxable; employee UC contribution 0.07% of total wages (uncapped).",
  "country": "us",
  "jurisdiction": "us-pa",
  "taxYear": "2026",
  "period": {
    "start": "2026-01-01",
    "end": "2026-12-31",
    "tz": "America/New_York"
  },
  "status": "provisional",
  "engine": "us-payroll@1",
  "currency": "USD",
  "revision": 1,
  "params": {
    "incomeTax": {
      "kind": "brackets",
      "incomeBase": "stateWages",
      "brackets": {
        "single": [
          {
            "upTo": null,
            "rate": "0.0307"
          }
        ],
        "mfj": [
          {
            "upTo": null,
            "rate": "0.0307"
          }
        ],
        "mfs": [
          {
            "upTo": null,
            "rate": "0.0307"
          }
        ],
        "hoh": [
          {
            "upTo": null,
            "rate": "0.0307"
          }
        ]
      },
      "deductions": [],
      "credits": []
    },
    "conformity": {
      "k401": false,
      "k403b": false,
      "k457": false,
      "hsa": true,
      "healthFsa": true,
      "dependentCareFsa": false,
      "section125": true
    },
    "programmes": [
      {
        "id": "ui",
        "label": "PA unemployment compensation – employee contribution (0.07% of total wages, no cap)",
        "rate": "0.0007",
        "wageBase": null,
        "annualCap": null,
        "weeklyCap": null,
        "base": "ficaWages",
        "employerRate": null
      }
    ]
  },
  "rounding": {
    "unit": "0.01",
    "mode": "halfUp",
    "stage": "perLine"
  },
  "knownCliffs": [],
  "notModelled": [
    "Tax Forgiveness (PA Schedule SP) – graduated eligibility-income credit for low-income families (not an exact cliff; not modelled)",
    "Local earned income tax (EIT), Local Services Tax and Philadelphia/Pittsburgh/Scranton wage taxes",
    "Employee business expenses (PA Schedule UE), IRC §529/ABLE deductions, other PA classes of income",
    "Non-qualified (409A / unfunded or forfeitable 457(b)) deferred compensation, which PA excludes when deferred"
  ],
  "sources": [
    {
      "field": "period",
      "url": "https://www.pa.gov/agencies/revenue/resources/tax-types-and-information/personal-income-tax",
      "title": "PA Department of Revenue – Personal Income Tax (calendar-year individual tax)",
      "retrieved": "2026-10-07"
    },
    {
      "field": "params.incomeTax",
      "url": "https://www.pa.gov/agencies/revenue/resources/tax-types-and-information/personal-income-tax",
      "title": "PA DOR – \"Pennsylvania personal income tax is levied at the rate of 3.07 percent against taxable income\"; PA allows no standard deduction or personal exemptions (only MSA/HSA and IRC §529 deductions)",
      "retrieved": "2026-10-07",
      "note": "Rate unchanged for 2026 (72 P.S. §7302; no rate legislation enacted)."
    },
    {
      "field": "params.conformity",
      "url": "https://www.pa.gov/agencies/revenue/forms-and-publications/pa-personal-income-tax-guide/gross-compensation",
      "title": "PA PIT Guide – Gross Compensation: employee contributions to retirement plans / qualified deferred compensation plans are taxable compensation; Section 125 contributions for hospitalization, sickness, disability or death coverage are exempt; \"Employee payments and contributions for other benefits, including dependent care and contributions to an IRC Section 401 plan, are not excludable\"",
      "retrieved": "2026-10-07",
      "note": "k401/k403b/k457 = false (taxed); section125 and healthFsa (medical reimbursement = sickness coverage) = true; dependentCareFsa = false."
    },
    {
      "field": "params.conformity.hsa",
      "url": "https://www.pa.gov/agencies/revenue/resources/tax-types-and-information/personal-income-tax",
      "title": "PA DOR – PA law allows deductions for health savings account contributions (HSA contributions excluded from PA-taxable income)",
      "retrieved": "2026-10-07"
    },
    {
      "field": "params.programmes",
      "url": "https://www.pa.gov/agencies/dli/resources/for-employers-and-educators/how-to-file/uc-tax/employee-withholding",
      "title": "PA Department of Labor & Industry – UC employee withholding: rate 0.07% (.0007) for 2023 and thereafter; based on total (gross) wages, not limited to the employer taxable wage base",
      "retrieved": "2026-10-07",
      "note": "Base modelled as FICA wages (gross less cafeteria-plan items, 401(k) deferrals included) – assumption that Section 125 reductions are excluded from UC wages as for FICA/FUTA; employer rate is experience-rated so not shown."
    },
    {
      "field": "rounding",
      "url": "https://www.pa.gov/agencies/revenue/resources/tax-types-and-information/personal-income-tax",
      "title": "PA DOR – PA-40 tax computed at 3.07% of taxable income; MoneyOtter rounds each line to the cent",
      "retrieved": "2026-10-07"
    }
  ]
}