New York vs Pennsylvania Taxes
Compare the total tax burden between New York (3.9% – 10.9%) and Pennsylvania (3.07% flat). Enter your income to see which state saves you more.
| Tax Component | New York | Pennsylvania |
|---|---|---|
| Federal tax | $13,170 | $13,170 |
| State tax | $4,860 | $3,070 |
| FICA | $7,650 | $7,650 |
| Total tax | $25,680 | $23,890 |
| Take-home | $74,320 | $76,110 |
| Effective rate | 25.68% | 23.89% |
| Annual Difference | $1,790 more | $1,790 less |
The $1,790 difference is primarily because New York has a progressive income tax with rates up to 10.9%, while Pennsylvania has a flat 3.1% income tax. At your income level, New York's marginal rate is 5.9% vs Pennsylvania's 3.1%.
Why the difference
You'd save $1,790/year ($149/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 3.1% vs 4.9% in New York — a 1.8 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) avoids the city income 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, you still owe the city's non-resident wage tax. PA's exemption of retirement income makes it attractive for retirees.
New York Total Tax
25.68% effective rate
Pennsylvania Total Tax
23.89% effective rate
Annual savings
by living in Pennsylvania
Tax at Different Income Levels
| Income | New York Total Tax | Pennsylvania Total Tax | Annual Savings |
|---|---|---|---|
| $75,000 | $16,861 | $15,710 | Save $1,151 |
| $100,000 | $25,680 | $23,890 | Save $1,790 |
| $150,000 | $44,500 | $40,814 | Save $3,686 |
| $200,000 | $62,401 | $57,213 | Save $5,188 |
Based on single filer, standard deduction, 2026 tax year. Includes federal income tax, state income tax, and FICA.
Why the difference
You'd save $1,790/year ($149/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 3.1% vs 4.9% in New York — a 1.8 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) avoids the city income 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, you still owe the city's non-resident wage tax. 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, making the combined state+city marginal rate the highest combined rate in the nation. Yonkers residents also pay a surcharge calculated as a percentage of their New York State tax.
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) avoids the city income 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. Many municipalities levy an additional earned income tax, and Philadelphia residents pay a city wage tax on top of the state rate. 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, you still owe the city's non-resident wage tax. PA's exemption of retirement income makes it attractive for retirees.
Key Comparison Points
Income tax structure: New York has a progressive income tax (3.9% – 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, the 2026 federal SALT cap is $40,400, phasing out above $505,000 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 $1,790 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 $1,790 per year in total taxes by living in Pennsylvania instead of New York. At $150,000 income, the savings change to $3,686 per year.
What is the income tax rate in New York?
New York has a progressive income tax with rates of 3.9% – 10.9%.
What is the income tax rate in Pennsylvania?
Pennsylvania has a flat income tax with rates of 3.07% flat.