Pennsylvania Hourly Paycheck Calculator 2026, With Overtime

How hourly pay becomes a paycheck

Your gross pay for a week is your hourly rate times your regular hours, plus one and a half times your rate for each overtime hour. Paid weekly, that is your paycheck; paid every two weeks, it is two weeks of it. Paid twice a month or monthly, a pay period is not a whole number of weeks, so the calculator uses the average: a year of 52 weeks divided by 24 or 12 paychecks. Your real paychecks can be a little higher or lower than that average, depending on how many workdays each period has.

From that gross pay come the same taxes as on a salary. Federal income tax follows your W-4 and the IRS’s 2026 tables. Social Security takes 6.2%, Medicare 1.45%. Pennsylvania takes 3.07% income tax and 0.07% unemployment tax. Your municipality takes its earned income tax, and the place you work its local services tax. The paycheck calculator explains each one; this page adds what changes when you are paid by the hour.

Overtime in Pennsylvania

Under Pennsylvania’s Minimum Wage Act, most hourly workers are owed one and a half times their regular rate for every hour over 40 in a workweek. Pennsylvania counts overtime by the week, not by the day: a 10-hour day earns no overtime by itself if the week stays at 40 hours or less. Some jobs are exempt, and some employers pay more than the law asks, so check your pay stub or your employer’s policy.

Overtime is taxed like the rest of your pay. Pennsylvania adds it to the paycheck it comes with and takes 3.07% of the total; there is no separate state rate for overtime. Social Security and Medicare take their usual share of it too.

The 2026 federal overtime deduction

From 2025 to 2028, people paid overtime under the federal Fair Labor Standards Act can deduct the “half” part of time and a half on their federal tax return: up to $12,500 a year, or $25,000 for married couples filing jointly, with income limits. You don’t have to wait for your tax refund to get it. The IRS says you can include an estimate in Step 4(b) of your W-4, and your employer then withholds less federal tax from each paycheck (IRS Publication 15-T).

Tick “Count my overtime deduction in Step 4(b)” and the calculator adds your yearly overtime premium to Step 4(b), up to the limit, as long as your total income stays under the W-4’s line of $150,000 ($300,000 married filing jointly; the calculator counts this job’s pay and Step 4(a)). Married people who file separately can’t take the deduction (IRS), so leave the box unticked if that is you. It does not change Social Security, Medicare or Pennsylvania tax: the deduction is federal only, and Pennsylvania taxes overtime in full.

The same W-4 worksheet has lines for qualified tips (up to $25,000) and for people 65 and older. If you expect those deductions, add them to “Deductions, Step 4(b)” under “More W-4 entries”.

A worked example

Take someone single paid $22.50 an hour for 40 hours a week plus 5 hours of overtime, every week, living and working in the city of Allentown. Each paycheck is $1,068.75 before anything is taken out. Out of it come federal income tax $86.33, Social Security $66.26, Medicare $15.50, Pennsylvania income tax $32.81, the state unemployment tax $0.75, the local earned income tax (1.975%) $21.11 and the local services tax $1.00. That leaves $844.99 a paycheck, $43,939.48 over the year: 79.1% of the pay.

Take someone a head of household paid $18.00 an hour for 32 hours a week, every two weeks, living and working in the city of Erie, with 1 child under 17 on the W-4. Each paycheck is $1,152.00 before anything is taken out. Out of it come federal income tax $0.00, Social Security $71.42, Medicare $16.70, Pennsylvania income tax $35.37, the state unemployment tax $0.81, the local earned income tax (1.65%) $19.01 and the local services tax $2.00. That leaves $1,006.69 a paycheck, $26,173.94 over the year: 87.4% of the pay.

Minimum wage in Pennsylvania

Pennsylvania’s minimum wage in 2026 is $7.25 an hour, the same as the federal minimum. For tipped workers who get more than $135 a month in tips, the employer may pay $2.83 an hour in cash, as long as tips bring the total to at least $7.25. Bills to raise the minimum wage have been introduced in the General Assembly, but none had become law when we last checked.

Questions people ask

How much is $20 an hour after taxes in Pennsylvania?

In 2026, a single person paid $20 an hour for 40 hours a week ($41,600 a year) takes home $33,831 a year, or $1,301.21 every two weeks, in a town with a 1% local tax and the $52 local services tax, such as Abington Township. In Philadelphia it is $32,746 a year, and in Pittsburgh $32,999. Federal income tax takes $2,812 of it, Social Security and Medicare $3,182, and Pennsylvania’s income and unemployment taxes $1,306.

That is with a W-4 that gives only a filing status, and no deductions. Type 20 and 40 into the calculator above and choose where you live and work: it shows each tax and what is left, per paycheck and for the year.

Is overtime taxed more in Pennsylvania?

No. Overtime is taxed at the same rates as the rest of your pay. A paycheck with overtime can have more federal tax withheld, because the payroll tables treat that bigger paycheck as if you earned it all year, but you settle the real tax when you file your return.

Does the overtime deduction lower my Pennsylvania tax?

No. It is a federal deduction only. Pennsylvania taxes overtime pay at 3.07% like any other wages, and local earned income tax does too.

Do hourly workers pay the local services tax?

Yes, if the municipality where you work levies it, whether you are paid by the hour or by salary. It is up to $52 a year in most places, taken in equal parts from each paycheck. If you earn less than $12,000 a year in that municipality (more in a few places), you can usually file for exemption.

How are part-time paychecks taxed?

The same way, on less pay. With low pay, federal income tax may be nothing at all, but Social Security, Medicare, Pennsylvania’s 3.07% and the unemployment tax start from the first dollar. If you expect to owe no Pennsylvania tax at all under its Tax Forgiveness rules, you can ask your employer to stop withholding state income tax with form REV-419.