What is Pennsylvania's income tax rate for self-employed workers in 2026?

A flat 3.07% state rate, plus your municipality's local Earned Income Tax — typically 1% to 3.75% depending on where you live.

What is the local Earned Income Tax (EIT) in Pennsylvania?

A municipal and school-district income tax charged where you live, collected by agencies like Berkheimer or Keystone. It applies to net self-employment profits, and most gig workers owe it quarterly as well as annually.

Does Pennsylvania allow the same deductions as the IRS?

No. Pennsylvania has no standard deduction, does not allow SEP-IRA or Solo 401(k) deductions, and uses narrower business-expense rules — your PA taxable income is usually higher than your federal.

When are Pennsylvania quarterly estimated taxes due?

PA-40ES payments follow the federal calendar: April 15, June 15, September 15, 2026 and January 15, 2027, required if you expect to owe $246 or more of PA tax.

What do self-employed workers in Philadelphia pay?

Philadelphia 1099 workers pay the state 3.07% plus the city's Business Income and Receipts Tax (on gross receipts) and Net Profits Tax — a heavier local stack than anywhere else in the state.

How much should a Pennsylvania gig worker set aside for taxes?

Around 25% to 30% of net profit typically covers federal income tax, the 15.3% self-employment tax, the 3.07% state rate and your local EIT.

Pennsylvania Self-Employed Tax Calculator

Federal income tax + 15.3% SE tax + Pennsylvania's flat 3.07% on 2026 1099 income — plus the local Earned Income Tax almost every municipality charges.

Pennsylvania looks simple — a flat 3.07% — but it plays by its own rules: no standard deduction and no deduction for SEP or Solo 401(k) contributions, so your PA taxable income is usually higher than your federal. Then your municipality adds a local Earned Income Tax, commonly 1% or more, and Philadelphia self-employed workers face BIRT and the Net Profits Tax instead.

Self-employed income & expenses

Estimate federal + SE + state tax for the 2026 tax year in one pass.

Annual 1099 income

Business miles driven

Other business expenses

Self-employed health insurance

Retirement contributions (SEP / Solo 401k)

W-2 income (if any)

Federal tax withheld

Filing status

State

Estimated total tax bill

$11,928

Refund / owed

-$11,928

Effective rate

19.9%

Detailed breakdown

Mileage deduction$5,600

Total business expenses$8,100

Net self-employment income$51,900

Self-employment tax (15.3%)$7,333

½ SE deduction (above-the-line)$3,667

Adjusted gross income$48,233

Taxable income$32,133

Federal income tax$3,608

State tax (est.)$986

Quarterly estimated payment$2,827

Marginal rate15.1%

Pennsylvania city tax rates for self-employed workers (2026)

Pennsylvania's state income tax is a flat 3.07% — but it follows its own rulebook: no standard deduction, no federal-style write-offs, and retirement contributions are not deductible. On top, nearly every municipality levies a local Earned Income Tax (EIT), usually 1% or more.

Local and state tax rates for self-employed residents of major Pennsylvania cities in 2026
City	Local rate	State rate	What gig workers should know
Philadelphia	3.75% city wage tax (2026)	3.07% flat	Self-employed Philadelphians pay BIRT on gross receipts plus Net Profits Tax instead of wage tax — a heavier local load than anywhere else in PA.
Pittsburgh	3% EIT (city + school district)	3.07% flat	Combined ~6% state + local on net earnings.
Allentown (Lehigh)	1.33% EIT typical	3.07% flat	Rate depends on your municipality and school district split.
Harrisburg (Dauphin)	2% EIT	3.07% flat	Higher EIT plus a $52 local services tax if you work in the city.
Erie	1.65% EIT typical	3.07% flat	Find your exact rate on the PA DCED municipal statistics tool.

Pennsylvania local and state filing deadlines

Q1 PA Form PA-40ESApril 15, 2026
Required if you expect to owe $246 or more of PA tax (the $8,000-ish income point at 3.07%).
Q2 PA Form PA-40ESJune 15, 2026
Second state installment.
Q3 PA Form PA-40ESSeptember 15, 2026
Third installment.
Q4 PA Form PA-40ESJanuary 15, 2027
Final installment for the 2026 year.
PA Form PA-40 returnApril 15, 2027
Extension to October 15, 2027 to file, not to pay.
Local EIT final returnApril 15, 2027
Filed with your local tax collector (often Berkheimer, Keystone or Jordan Tax Service); quarterly local vouchers usually follow federal dates.
Q1 federal 1040-ESApril 15, 2026
Covers income earned January 1 – March 31.
Q2 federal 1040-ESJune 15, 2026
Covers April 1 – May 31.
Q3 federal 1040-ESSeptember 15, 2026
Covers June 1 – August 31.
Q4 federal 1040-ESJanuary 15, 2027
Covers September 1 – December 31.

Pennsylvania does NOT follow federal deductions: no standard deduction, no SEP/Solo 401(k) deduction, and business expenses are only allowed under PA's narrower rules — your PA taxable income is usually higher than your federal.
The local EIT applies to net profits and is owed where you live, not where you work — every gig worker needs to know their home municipality's rate.
Philadelphia self-employed workers face a unique stack: state 3.07% + BIRT + Net Profits Tax, with BIRT charged on gross receipts, not profit.

Frequently asked questions

What is Pennsylvania's income tax rate for self-employed workers in 2026?: A flat 3.07% state rate, plus your municipality's local Earned Income Tax — typically 1% to 3.75% depending on where you live.
What is the local Earned Income Tax (EIT) in Pennsylvania?: A municipal and school-district income tax charged where you live, collected by agencies like Berkheimer or Keystone. It applies to net self-employment profits, and most gig workers owe it quarterly as well as annually.
Does Pennsylvania allow the same deductions as the IRS?: No. Pennsylvania has no standard deduction, does not allow SEP-IRA or Solo 401(k) deductions, and uses narrower business-expense rules — your PA taxable income is usually higher than your federal.
When are Pennsylvania quarterly estimated taxes due?: PA-40ES payments follow the federal calendar: April 15, June 15, September 15, 2026 and January 15, 2027, required if you expect to owe $246 or more of PA tax.
What do self-employed workers in Philadelphia pay?: Philadelphia 1099 workers pay the state 3.07% plus the city's Business Income and Receipts Tax (on gross receipts) and Net Profits Tax — a heavier local stack than anywhere else in the state.
How much should a Pennsylvania gig worker set aside for taxes?: Around 25% to 30% of net profit typically covers federal income tax, the 15.3% self-employment tax, the 3.07% state rate and your local EIT.