Pennsylvania charges 3.07% flat + local state income tax plus local taxes in some areas. Use the stock option tax calculator pre-loaded with Pennsylvania rates.
Open Stock Option Tax Calculator →Stock option exercises in Pennsylvania are subject to a flat 3.07% state income tax on top of federal tax. For NSOs, the spread at exercise is ordinary income subject to both federal and Pennsylvania state tax plus FICA. For ISOs, while there is no regular tax at exercise, the spread counts for AMT purposes and for Pennsylvania state tax calculations. Local taxes in parts of Pennsylvania further increase the cost of exercising. This calculator helps you plan the optimal time and amount to exercise given Pennsylvania's tax rates.
Pennsylvania levies a flat 3.07% state income tax on all taxable income regardless of how much you earn. This makes tax planning straightforward: for every additional dollar you earn, 3.07 cents goes to Pennsylvania. However, certain localities in Pennsylvania impose their own income taxes, which effectively raise the combined state and local rate above 3.07%. Be sure to check whether your city or county adds a local income tax.
The table below shows what you actually keep at five salary levels in Pennsylvania, accounting for federal tax, FICA, and Pennsylvania's flat 3.07% state tax plus estimated local taxes.
See how Pennsylvania compares to other Northeast states. Each link takes you to the stock option tax calculator landing page for that state.
For a comprehensive breakdown of Pennsylvania’s tax structure, salary comparisons, cost-of-living analysis, and more, visit the full Pennsylvania take-home pay page.