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Personal income tax. Pennsylvania has a flat tax rate of 3.07% on individual income, with no personal exemptions.
Local Earned Income Tax. Municipalities in Pennsylvania can collect income taxes of their own, called a âLocal Earned Income Tax.â While small cities collect a tax of no more than 2% â in many places, the rate is just 1% â larger cities can (and do) collect more. Below are the local earned income tax rates for Pennsylvaniaâs largest cities.