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Pennsylvania Payroll Tax Rates in 2014

May 28, 2014 | posted by Abacus Payroll

Pennsylvania Income Tax Rate

The withholding rate for 2014 remains at 3.07%



Pennsylvania Unemployment Tax

The employee rate for 2014 is 0.07%. Wages subject to unemployment contributions for employees are unlimited. Wages subject to unemployment contributions for employers increase to $8,750.



City of Philadelphia Wage Tax

Effective January 1 through June 30, 2014 tax rates are 3.924% for Philadelphia residents and 3.495% for non-residents. Effective July 1 through December 31, 2014 the rates decrease to 3.92% for city residents and 3.4915% for non-residents.


Pennsylvania Local Tax Rate

Act 32 is a law that reforms and standardizes the local earned income tax system, which requires uniform withholding of earned income taxes and remittance to a single local collector or Tax Officer. The Act applies to the earned income taxes levied ad collected after December 31, 2011. Employers must begin to withhold the local EIT from employees on January 1 2012.  For more information visit

2014 Wage Tax Rate Summary for Pennsylvania


  2014 Current Year 2013 Prior Year
Minimum Wage $7.25 $7.25



Maximum taxable earnings

Employee deduction










2014 Wage Tax Rates for the City of Philadelphia


City Wage Tax 2014 Current Year 2013 Prior Year



January 1 July 1  








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.