Pennsylvania Self-Employment Tax Calculator

Calculate your self-employment tax, federal income tax, and Pennsylvania state income tax as a freelancer or 1099 contractor. Pennsylvania has a flat income tax rate of 3.

Annual Tax Breakdown

1099 Income
$85,000
Business Expenses
-$10,000
Net Profit
$75,000
Net Earnings (92.35%)(SE tax base)
$69,263
Social Security (12.4%)
-$8,589
Medicare (2.9%+)
-$2,009
Total SE Tax
-$10,597
SE Deduction (50%)(reduces income tax)
$5,299
Federal Income Tax
-$6,794
State Income Tax
-$2,303
Total Tax Owed
$19,694

Summary

Total Income
$75,000
Total Taxes
-$19,694
After-Tax Income
$55,306
Effective Tax Rate(on total income)
26.3%

Quarterly Estimated Payments

Q1 (Jan-Mar)Due April 15
$4,923
Q2 (Apr-May)Due June 15
$4,923
Q3 (Jun-Aug)Due September 15
$4,923
Q4 (Sep-Dec)Due January 15 (next year)
$4,923
Each Quarterly Payment
$4,923

Tax Breakdown

See your complete freelancer financial picture

Your estimated quarterly tax payment is $4,923. Model your freelance income alongside expenses, savings, and investments in the full simulator.

Try the Full Simulator

Pennsylvania Tax Overview for Freelancers

Pennsylvania has a flat income tax rate of 3.07%, one of the lowest flat rates in the nation. Some cities (notably Philadelphia) levy additional local income taxes. Self-employed individuals in Pennsylvania pay federal self-employment tax (15.3%) plus federal income tax, and Pennsylvania state income tax on their net self-employment earnings.

Flat 3.07% rate (very low)Philadelphia city wage tax (~3.75%)No tax on any retirement incomeGrowing Pittsburgh tech sector

Self-Employment Taxes in Pennsylvania

If you work as a freelancer or independent contractor in Pennsylvania, your tax situation involves multiple layers: federal self-employment tax, federal income tax, and Pennsylvania state income tax. Understanding how each component works helps you plan your quarterly estimated payments and maximize your deductions.

Pennsylvania Income Tax for Freelancers

Pennsylvania has a flat income tax rate of 3.07%, one of the lowest flat rates in the nation. Some cities (notably Philadelphia) levy additional local income taxes.

Cost of Living for Freelancers in Pennsylvania

Pennsylvania's cost of living is about 2% below the national average, with Philadelphia and Pittsburgh being near average. As a freelancer in Pennsylvania, your effective earnings depend not just on your tax rate but also on what your after-tax income can buy. Consider local costs for housing, coworking spaces, and daily expenses when setting your rates.

Financial Tips for Pennsylvania Freelancers

  • Pennsylvania's 3.07% rate is among the lowest — but Philadelphia adds a city wage tax of ~3.75%
  • Pennsylvania does not tax retirement income including 401(k), IRA, and Social Security
  • Pennsylvania's moderate cost of living and access to both Philadelphia and Pittsburgh metros offer diverse opportunities
  • Pittsburgh's tech and healthcare sectors are rapidly growing

Key Pennsylvania Tax Features

  • Flat 3.07% rate (very low)
  • Philadelphia city wage tax (~3.75%)
  • No tax on any retirement income
  • Growing Pittsburgh tech sector

Model Your Pennsylvania Freelance Finances Over Time

This calculator shows your Pennsylvania tax bill. Trajectoryy's full simulator models your freelance income alongside expenses, savings, investments, and more — month by month for years into the future.

Start Simulating for Free

Frequently Asked Questions

How is self-employment tax calculated in Pennsylvania?
Self-employed workers in Pennsylvania pay federal self-employment tax (15.3% on 92.35% of net earnings), federal income tax, and Pennsylvania state income tax. Pennsylvania has a flat income tax rate of 3.07%, one of the lowest flat rates in the nation. Some cities (notably Philadelphia) levy additional local income taxes.
How much will I owe in quarterly taxes as a freelancer in Pennsylvania?
Your quarterly estimated tax payment in Pennsylvania depends on your total tax liability — including SE tax, federal income tax, and Pennsylvania state income tax. Use the calculator above to estimate your quarterly payments. As a general rule, freelancers should set aside 25-35% of their net income for taxes.
What business deductions are available for Pennsylvania freelancers?
Freelancers in Pennsylvania can deduct the same federal business expenses as in any state: home office, equipment, software, health insurance, vehicle expenses, and more. These deductions also reduce your Pennsylvania state taxable income, providing additional state tax savings.
Does Pennsylvania have any special taxes for self-employed workers?
Pennsylvania does not have a separate self-employment tax. However, your net self-employment income is subject to Pennsylvania's regular income tax (3.07% top rate) in addition to federal self-employment tax and federal income tax.
Should I form an LLC or S-Corp as a freelancer in Pennsylvania?
The decision to form an LLC or S-Corp in Pennsylvania depends on your income level. Generally, if your net self-employment income exceeds $50,000-$60,000, an S-Corp election may save you money by allowing you to pay yourself a reasonable salary (subject to FICA/Medicare) while taking the rest as distributions (not subject to SE tax). Consult a Pennsylvania tax professional for advice specific to your situation.

Related Calculators