Comparison•2025 Tax Year•Last verified: January 2026
Pennsylvania vs Ohio: Side Hustle Tax Comparison 2025
Compare Pennsylvania and Ohio taxes for freelancers and gig workers. PA has a flat 3.07% while Ohio ranges from 0-3.75% - see which is better for your side hustle.
Pennsylvania and Ohio are neighboring Rust Belt states with significant economic ties. For side hustlers in Pittsburgh, Cleveland, or anywhere along the PA-OH border, understanding how these states compare on taxes can influence where you choose to live.
Both states have relatively low income tax rates compared to coastal states, but the structures differ: Pennsylvania has a flat 3.07% rate, while Ohio has a progressive system with rates from 0% to 3.75%. Depending on your income, one may be better than the other.
**Why This Comparison Matters:**
The PA-OH comparison matters for Midwest side hustlers:
- **Both have low state taxes**: Neither exceeds 4% at the state level
- **Different structures**: PA is flat; Ohio is progressive
- **Local taxes complicate things**: Ohio cities often add 1-3% local income tax
- **Pittsburgh-Cleveland corridor**: Major economic region spanning both states
- **Cost of living**: Both states offer affordable living compared to coasts
For side hustlers, the comparison often comes down to local taxes—Ohio's city income taxes can exceed PA's flat state rate.
Side-by-Side Tax Comparison
| Metric | Pennsylvania | Ohio |
|---|---|---|
| State Income Tax Rate | 3.07% (flat) | 0% - 3.75% (progressive) |
| Tax on First $26K | 3.07% | 0% |
| City Income Tax (Major Cities) | ~3% (Pittsburgh) | 1.8-2.5% (common) |
| Federal SE Tax | 15.3% | 15.3% |
| Est. Tax on $15K Side Hustle (no city)* | ~$5,885 | ~$5,837 |
| Est. Tax on $15K (Cleveland/Pgh)* | ~$6,335 | ~$6,212 |
| Property Tax (Avg Rate) | 1.36% | 1.59% |
| Sales Tax (State + Avg Local) | 6% | 7.24% |
*Assumes single filer with $60,000 W-2 income + $15,000 net side hustle income. Actual taxes vary based on deductions, filing status, and total income.
Pennsylvania Analysis
**Pennsylvania Tax Analysis for Side Hustlers**
Pennsylvania's flat 3.07% rate applies to all income equally, regardless of how much you earn.
**Key Pennsylvania Tax Facts (2025):**
- **State Income Tax**: 3.07% flat rate
- **Tax Type**: Flat (same rate for all income)
- **Local Income Tax**: Limited—mostly just Philadelphia (3.75%)
- **Pittsburgh Local**: ~3% combined local taxes
- **Filing**: Simple with flat rate
**Example**: If you earn $55,000 from your W-2 job and $15,000 from side hustle income (net of expenses) in Pennsylvania (outside major cities):
- Federal SE Tax: ~$2,124
- Federal Income Tax on side income: ~$3,300
- PA State Tax: ~$461
- **Total Tax on Side Hustle: ~$5,885** (39.2% effective rate)
Pennsylvania's flat rate means predictable taxes regardless of income level. The simplicity is valuable for tax planning.
Ohio Analysis
**Ohio Tax Analysis for Side Hustlers**
Ohio has a progressive income tax with rates from 0% to 3.75%, plus many cities levy their own income taxes.
**Key Ohio Tax Facts (2025):**
- **Tax Type**: Progressive (4 brackets)
- **Rate Range**: 0% to 3.75%
- **$0-$26,050**: 0% (tax-free)
- **Over $115,300**: 3.75%
- **Local Income Tax**: Common—Cleveland 2.5%, Columbus 2.5%, Cincinnati 1.8%
**Example**: Same scenario—$55,000 W-2 job and $15,000 from side hustle income (net of expenses) in Ohio (outside major cities):
- Federal SE Tax: ~$2,124
- Federal Income Tax on side income: ~$3,300
- Ohio State Tax: ~$413
- **Total Tax on Side Hustle: ~$5,837** (38.9% effective rate)
**Ohio saves: ~$48/year** on $15,000 of side hustle income (at this income level).
However, if you live in Cleveland or Columbus, add 2.5% city tax (~$375), making Ohio more expensive than PA.
Calculate Your Side Hustle Taxes
Use our calculator to see exactly what you'd owe in each state. Try entering your numbers, then switch between Pennsylvania and Ohio to compare.
Which State Is Right for Your Side Hustle?
**Pennsylvania May Be Better If You:**
- Live in rural PA or small towns (no local income tax)
- Want simplicity of flat tax rate
- Earn higher income (PA's flat rate beats OH's top bracket)
- Prefer slightly lower property taxes
- Value PA's access to both NYC and DC corridors
**Ohio May Be Better If You:**
- Earn lower income (Ohio's 0% bracket up to $26K)
- Can avoid Ohio's major cities with local income taxes
- Work in industries strong in Ohio (manufacturing, healthcare)
- Prefer Ohio's lower cost of living in some areas
- Are drawn to Columbus's growing tech scene
**Important Considerations:**
1. **Local taxes are the key variable**: Both states have city/local income taxes that can exceed the state tax. Check specific cities before deciding.
2. **Ohio's 0% bracket helps lower earners**: If your total income (W-2 + side hustle) is under $26,050, Ohio's state tax is $0. PA still charges 3.07% on all income.
3. **Higher earners favor PA**: Once you're in Ohio's top bracket (3.75%), PA's flat 3.07% becomes the better deal.
4. **Pittsburgh vs Cleveland**: Both cities have local income taxes around 2.5-3%, making them roughly comparable. The suburbs of each may differ.
5. **Sales tax favors PA**: Pennsylvania's 6% sales tax beats Ohio's 7.24%, adding to savings on purchases.
Frequently Asked Questions
Which state is better for side hustlers - Pennsylvania or Ohio?
It depends on your income level and where specifically you live. For lower earners, Ohio's 0% bracket on the first $26,050 can be advantageous. For higher earners, PA's flat 3.07% beats Ohio's 3.75% top rate. However, Ohio's city income taxes (2-2.5% in major cities) can tip the balance toward PA. Compare your specific situation.
Do Ohio cities really charge income tax on top of state tax?
Yes, most Ohio cities levy their own income tax—typically 1.5-2.5%. Cleveland and Columbus both charge 2.5%, Cincinnati charges 1.8%. This is added to the state rate. Pennsylvania has fewer cities with local income tax, though Pittsburgh and Philadelphia both have them.
Is Pittsburgh or Cleveland better for side hustlers?
Tax-wise, they're similar—both have local income taxes around 2.5-3%. Pittsburgh is in PA (3.07% state flat rate) while Cleveland is in Ohio (0-3.75% progressive). For most middle-income side hustlers, the total tax burden is comparable. Other factors like job market, cost of living, and lifestyle may matter more.
Related Comparisons
Sources
- • Pennsylvania Department of Revenue - 2025 Tax Rates
- • Ohio Department of Taxation - 2025 Tax Rates
- • Tax Foundation - State and Local Tax Data 2025
- • IRS Publication 334 - Tax Guide for Small Business