New York vs Pennsylvania Taxes
Compare the total tax burden between New York (4% – 10.9%) and Pennsylvania (3.07% flat). Enter your income to see which state saves you more.
Tax at Different Income Levels
| Income | New York Total Tax | Pennsylvania Total Tax | Annual Savings |
|---|---|---|---|
| $75,000 | $16,939 | $15,505 | Save $1,434 |
| $100,000 | $25,828 | $23,685 | Save $2,143 |
| $150,000 | $44,396 | $40,663 | Save $3,733 |
| $200,000 | $61,865 | $56,542 | Save $5,323 |
Based on single filer, standard deduction, 2025 tax year. Includes federal income tax, state income tax, and FICA.
Why the difference
You'd save $2,143/year ($179/month) in Pennsylvania vs New York.
Tax structure
New York uses progressive brackets up to 10.9%, while Pennsylvania has a flat 3.1% state income tax.
Effective rate at your income
At $100,000, Pennsylvania's effective state rate is 2.6% vs 4.7% in New York — a 2.1 percentage point gap.
New York local taxes
New York City residents pay an additional 3.1-3.9% city income tax on top of state tax.
Pennsylvania local taxes
Many Pennsylvania municipalities levy an earned income tax (typically 1-3%); Philadelphia wage tax is 3.75% for residents.
Tip: If you work in NYC, the city income tax significantly increases your burden. Living outside the city (e.g., New Jersey, Connecticut, or Westchester) can save 3-4% on city tax, but commuter taxes and higher property taxes may partially offset the savings.
Tip: PA's low flat rate benefits high earners, but the Philadelphia wage tax adds significantly for city workers. If you live outside Philadelphia but work in the city, the non-resident wage tax is 3.44%. PA's exemption of retirement income makes it attractive for retirees.
Understanding Each State
New York
New York's state income tax has progressive brackets reaching 10.9%. New York City residents pay an additional city income tax of 3.078-3.876%, making the combined state+city marginal rate up to 14.776% — the highest combined rate in the nation. The Yonkers surcharge adds another 16.75% of state tax for Yonkers residents.
Tip: If you work in NYC, the city income tax significantly increases your burden. Living outside the city (e.g., New Jersey, Connecticut, or Westchester) can save 3-4% on city tax, but commuter taxes and higher property taxes may partially offset the savings.
Pennsylvania
Pennsylvania has a flat income tax rate of 3.07% — one of the lowest flat rates in the US. Some municipalities levy an additional earned income tax (typically 1-3%), and Philadelphia residents pay a 3.75% wage tax. PA does not tax retirement income (401k, IRA, Social Security).
Tip: PA's low flat rate benefits high earners, but the Philadelphia wage tax adds significantly for city workers. If you live outside Philadelphia but work in the city, the non-resident wage tax is 3.44%. PA's exemption of retirement income makes it attractive for retirees.
Key Comparison Points
Income tax structure: New York has a progressive income tax (4% – 10.9%), while Pennsylvania has a flat income tax (3.07% flat).
Beyond income tax: State tax comparisons should also consider property tax rates, sales tax, and cost of living. A state with no income tax may have higher property or sales taxes that offset the savings.
SALT deduction cap: Under OBBBA (2025+), the federal SALT cap is $40,000, phasing out above $500,000 MAGI toward a $10,000 floor. This limits the federal tax benefit of living in a high-tax state, so the gross state tax difference remains close to the net difference for most earners — especially high earners inside the phaseout.
Frequently asked questions
Is it cheaper to live in New York or Pennsylvania?
Based on income tax alone, Pennsylvania has a lower tax burden. At $100K income, you'd save $2,143 annually in Pennsylvania compared to New York. However, total cost of living also depends on property taxes, sales taxes, and housing costs.
How much would I save moving from New York to Pennsylvania?
A single filer earning $100,000 would save approximately $2,143 per year in total taxes by living in Pennsylvania instead of New York. At $150,000 income, the savings change to $3,733 per year.
What is the income tax rate in New York?
New York has a progressive income tax with rates of 4% – 10.9%.
What is the income tax rate in Pennsylvania?
Pennsylvania has a flat income tax with rates of 3.07% flat.