Pennsylvania Side Hustle Tax Calculator
Calculate your Pennsylvania state tax (3.07%), federal tax, and self-employment tax on 1099 income.
Last updated: January 2026 · Data from IRS Rev Proc 2024-40
Pennsylvania offers side hustlers a relatively straightforward tax situation with its flat 3.07% state income tax rate—one of the lowest flat rates in the nation. However, many Pennsylvania municipalities also levy local income taxes (called Earned Income Tax or EIT), which can add 1% to 3.75% depending on where you live. Pittsburgh and Philadelphia residents face the highest combined rates.
How Side Hustle Taxes Work in Pennsylvania
Pennsylvania uses a flat tax system, making calculations simpler than progressive-tax states:
**Pennsylvania state tax:** - Flat rate: 3.07% on all taxable income - No brackets—everyone pays the same percentage - Applies to net profits from self-employment
**Local Earned Income Tax (EIT):** - Philadelphia: 3.75% for residents - Pittsburgh: 3% for residents - Other municipalities: 0.5% to 3% - This is IN ADDITION to the state 3.07%
Combined rates in major cities: - Philadelphia residents: 6.82% (3.07% + 3.75%) - Pittsburgh residents: 6.07% (3.07% + 3%)
What Pennsylvania Side Hustlers Owe
Let's say you're a single filer in Philadelphia with a $45,000 W-2 job and $10,000 in side hustle income from selling handmade goods, with $1,000 in expenses.
**Your estimated taxes on the side hustle:** - Net self-employment income: $9,000 - Federal SE tax (15.3% of 92.35%): ~$1,273 - Federal income tax on side income: ~$1,980 (22% bracket) - PA State tax (3.07%): ~$276 - Philadelphia EIT (3.75%): ~$338 - **Total additional tax: ~$3,867**
Outside Philadelphia/Pittsburgh, your local tax would be much lower, potentially saving you $200-$300.
Pennsylvania Tax Deadlines 2025
Pennsylvania estimated tax deadlines: - **Q1**: April 15, 2025 - **Q2**: June 15, 2025 - **Q3**: September 15, 2025 - **Q4**: January 15, 2026
Use PA-40 ES for state estimated payments. Local EIT payments are typically made to your local tax collector—check your municipality's requirements.
Common Deductions for Pennsylvania Freelancers
Pennsylvania tax deductions for side hustlers: - PA allows most federal business expense deductions - Home office expenses - Business-related travel - Equipment and supplies - Professional services - Note: PA has unique rules—some deductions allowed federally may differ for PA purposes
Pennsylvania Side Hustle Tax FAQ
Does Pennsylvania have a flat tax on side hustle income?
Yes, Pennsylvania has a flat 3.07% income tax rate on all taxable income including self-employment earnings. However, you may also owe local Earned Income Tax (EIT) of 0.5-3.75% depending on your municipality.
Do I pay local taxes on my side hustle in PA?
Yes, most Pennsylvania municipalities levy an Earned Income Tax (EIT) on net profits from self-employment. Philadelphia is 3.75%, Pittsburgh is 3%, and other areas range from 0.5% to over 3%.
How do I pay PA estimated taxes on my side hustle?
Use Form PA-40 ES to make quarterly estimated payments to Pennsylvania. You'll also need to make separate payments to your local tax collector for the EIT portion.
Side Hustle Calculators by State
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This calculator provides estimates only. For personalized advice, consult a qualified tax professional.
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