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2022 Pennsylvania Payroll Tax Rates

December 15, 2021 | posted by Abacus Payroll

Abacus Payroll and Alloy Silverstein present an updated summary of all changes to Pennsylvania payroll tax rates in 2022.

We keep this page updated, but if you’d like to be alerted to more changes to Pennsylvania Payroll Tax rates in the future, you can subscribe to our Payroll Tax Alert Service.

If you’d like help with payroll, we’d be happy to give you a quote. You’ll be assigned your very own payroll tax expert and our prices start at $4 per employee per month.


Print Full 2022 Payroll Tax Alert [PDF]

Pennsylvania Income Tax Rate

The withholding rate for 2022 remains at 3.07%.


Pennsylvania Unemployment Tax

The employee rate for 2022 remains at 0.06%. Wages subject to unemployment contributions for employees are unlimited. Wages subject to unemployment contributions for employers remains at $10,000.


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City of Philadelphia Wage Tax

Effective July 1, 2021 tax rates are 3.8398% for Philadelphia residents and 3.4481% for nonresidents. These rates are adjusted by the City of Philadelphia on July 1 of each year.


2021 Pennsylvania 1099-MISC Withholding Tax

There is a withholding requirement for payors of Pennsylvania-source non-employee compensation and business income to non-resident individuals. In addition, lessees of Pennsylvania real estate making “lease payments” to nonresident lessors in the course of a trade or business are required to withhold personal income tax on payments of $5,000 or more annually. The 1099-MISC/NEC forms will need to be filed with the Pennsylvania Department of Revenue by January 31, 2022 along with the Annual Withholding Statement (PA Form Rev-1667). Details can be found at http://revenue.


Pennsylvania Local Tax Rate

Act 32 is a law that reformed and standardized the local earned income tax (EIT) system, which requires uniform withholding of earned income taxes and local services tax with remittance to a single local collector or Tax Officer. For more information, see


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New Hire Reporting Requirements

All employers in the state of Pennsylvania are required to report basic information about employees who are newly hired, rehired, and returning to work after separation of employment or leave of absence, temporary employees, and contracted entities. Employers must report this information within 20 days at Failure to report a new employee could result in a fine up to $25 per violation.

Basic employee information which must be provided is as follows:

(1) Employee’s name
(2) Employee’s address
(3) Employee’s social security number
(4) Employee’s date of hire and birth
(5) Employer’s name and address
(6) Employer’s federal identification number


For further information contact us or call the State of Pennsylvania at 1-888-724-4737 (1-888-PA-HIRES).


2022 Wage Tax Rate Summary for Pennsylvania

2022 Current Year 2021 Prior Year
Minimum Wage $7.25 $7.25
Maximum taxable earnings $10,000 $10,000
Employee deduction 0.06% 0.06%



2021-2022 Wage Tax Rates for the City of Philadelphia

(As of July 1, 2021)

2021-2022 Current Year 2020-2021 Prior Year
City Wage Tax
Residents 3.8398% 3.8712%
Non-Residents 3.4481% 3.5091%


View more rates on our Federal Payroll Tax Update page.


Print Full 2022 Payroll Tax Alert [PDF]



About the Author: Abacus Payroll

Abacus Payroll, Inc. is a leading provider of payroll solutions for businesses of all sizes. Whether yours is a family-owned small business or a national corporation, we provide payroll, tax and other financial services on time and at an affordable price. Unlike other payroll providers, Abacus Payroll will assign your very own payroll specialist who will understand your payroll needs inside and out. So no more speaking to a different person each time, no more sitting on hold for hours and most importantly no more missed deadlines! Contact us today to see how we can help your business. You can count on us.