Pennsylvania State Income Tax Withholding Information

State Abbreviation: PA
State Tax Withholding State Code: 42
Acceptable Exemption Form: None
Basis For Withholding: Percentage of Annual Wages
Acceptable Exemption Data: None
TSP Deferred: No
Special Coding: None
Additional Information: A state tax certificate is not required since the state tax computation is based on a percentage of annual wages.

Additional Resources:

TAXES 04-01, Pennsylvania State Income Tax Withholding

Withholding Formula (Effective Pay Period 04, 2004)

  1. Subtract the nontaxable biweekly Federal Health benefits Plan payment(s) (includes dental and vision insurance program, and flexible spending account - health care deductions) from the gross biweekly wages.
  2. Subtract the nontaxable biweekly life insurance payment from the adjusted gross biweekly wages.
  3. Add the taxable biweekly fringe benefits to the adjusted gross biweekly wages.
  4. Multiply the adjusted gross biweekly wages times 26 to obtain the annual wages.
  5. Multiply the annual wages by 3.07 percent to calculate the annual Pennsylvania tax withholding.
  6. Divide the annual Pennsylvania tax withholding by 26 to obtain the biweekly Pennsylvania tax withholding.