Abacus Payroll presents an updated summary of all changes to Pennsylvania payroll tax rates in 2024.

Pennsylvania Minimum Wage

The effective rate per hour for 2024 is $7.25  (effective 07/24/2009). 

Pennsylvania Income Tax Rate

The withholding rate for 2024 remains at 3.07%.

Pennsylvania Unemployment Tax

The employee rate for 2024 remains at 0.07%. Wages subject to unemployment contributions for employees are unlimited. Wages subject to unemployment contributions for employers remains at $10,000.

City of Philadelphia Wage Tax

Effective July 1, 2023 tax rates are 3.75% for Philadelphia residents and 3.44% for nonresidents. These rates are adjusted by the City of Philadelphia on July 1st of each year.

Pennsylvania 1099-MISC/NEC 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 non-resident 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, 2024 along with the Annual Withholding Statement (PA Form Rev-1667). Details can be found at http://revenue.pa.gov.

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 www.dced.pa.gov.

2024 Payroll Tax Alert

Download the PDF version of our Payroll Tax Alert for New Jersey and Pennsylvania Employers

Click Here

2024 Wage Tax Rate Summary for Pennsylvania

2024 Current Year2023 Prior Year
Minimum Wage$7.25$7.25
Maximum taxable earnings – Employer$10,000$10,000
Maximum taxable earnings – EmployeeNo LimitNo Limit
Employee deduction0.07%0.07%

2023-2024 Wage Tax Rates for the City of Philadelphia

(As of July 1, 2023)

City Wage Tax2023-2025 Current Year2022-2023 Prior Year

View more rates on our 2024 Federal Payroll Tax Updates page.

Easier, Friendlier Payroll Is In Your Reach

Small businesses are a big deal to us. Eliminate the hassle of over complicated payroll and HR processes by partnering with a local and responsive provider.

Focus on your business and leave the payroll and tax to us. Count on Abacus Payroll.