{"place":"Pennsylvania","kind":"state","asOf":"2026-10-07","url":"https://gigaverse.ai/local/pennsylvania","state":{"code":"PA","name":"Pennsylvania","slug":"pennsylvania","incomeTax":{"type":"flat","flatRate2026":3.07,"lowestRate2026":null,"topRate2026":null,"topRateStartsSingle":null,"notes":"Flat 3.07% applies to eight separate classes of income, including net business profits. A loss in one class cannot offset income in another class.","source":"https://www.pa.gov/agencies/revenue/resources/tax-types-and-information/personal-income-tax"},"estimatedTax":{"form":"PA-40 ES (I) with worksheet REV-414 (I)","rule":"For 2026, you must pay estimated tax if you expect to owe at least $430 ($14,000 of income not subject to withholding) after withholding and credits; the income threshold rises to $17,000 in 2027 and $20,000 in 2028.","schedule":"Same dates as federal (April 15, 2026; June 15, 2026; September 15, 2026; January 15, 2027)","source":"https://www.pa.gov/content/dam/copapwp-pagov/en/revenue/documents/formsandpublications/formsforindividuals/pit/documents/2026/2026_rev-413i.pdf"},"minimumWage2026":{"standard":7.25,"tippedCash":2.83,"tipCreditAllowed":true,"notes":"A tipped employee is one who regularly gets more than $135 a month in tips. Cash wage plus tips must reach at least $7.25 an hour. No increase was in effect as of July 1, 2026, according to the USDOL state table.","source":"https://www.pa.gov/agencies/dli/resources/compliance-laws-and-regulations/labor-management-relations/labor-law/overtime-and-tipped-worker-rules-in-pa"},"soleProprietorTaxes":[],"contractorLaws":[{"name":"Unemployment compensation two-part independent contractor test","summary":"A worker is presumed to be an employee unless they are free from control or direction over the work, both under the contract and in fact, and are customarily engaged in an independently established trade, occupation, profession, or business.","source":"https://www.pa.gov/agencies/dli/resources/compliance-laws-and-regulations/covered-employment/employee-or-independent-contractor"},{"name":"Construction Workplace Misclassification Act (Act 72 of 2010)","summary":"Construction workers are presumed to be employees. To be a contractor they need a written contract, freedom from control, and an independent business. That includes owning essential tools, chance of profit or loss, a separate business location, work for others, and at least $50,000 of liability insurance.","source":"https://www.pa.gov/agencies/dli/resources/compliance-laws-and-regulations/covered-employment/employee-or-independent-contractor"}],"notes":"Under Act 32, most municipalities and school districts levy a local earned income tax on sole proprietors' net profits, paid through quarterly estimated payments to the local tax collector (https://dced.pa.gov/local-government/local-income-tax-information/act32-faq)."},"stateRetirementProgram":{"state":"Pennsylvania","code":"PA","programName":null,"status":"none","employerMandate":null,"mandateMin":null,"keyDates":null,"covers1099":null,"selfEnroll":"n/a","sourceUrl":"https://www.palegis.us/legislation/bills/2025/sb1069","note":"No enacted program. The proposed Keystone Saves Program (HB 577 passed the House May 16, 2025; SB 1069 pending) would cover employers with 5+ employees in business 15+ months, with no penalty in the current bill text. It is not law and Pennsylvania is not among Georgetown CRI’s 22 program states.","lastVerified":"2026-09-09"},"city":null,"guides":[{"audience":"consultants","url":"https://gigaverse.ai/local/pennsylvania/consultants"},{"audience":"freelancers","url":"https://gigaverse.ai/local/pennsylvania/freelancers"},{"audience":"content-creators","url":"https://gigaverse.ai/local/pennsylvania/content-creators"},{"audience":"entrepreneurs","url":"https://gigaverse.ai/local/pennsylvania/entrepreneurs"},{"audience":"gig-workers","url":"https://gigaverse.ai/local/pennsylvania/gig-workers"},{"audience":"tipped-workers","url":"https://gigaverse.ai/local/pennsylvania/tipped-workers"},{"audience":"tradespeople","url":"https://gigaverse.ai/local/pennsylvania/tradespeople"}],"disclaimer":"Educational information for 2026, not tax, legal or investment advice. Sources are cited per fact."}