Pennsylvania tax guide

Pennsylvania taxes for self-employed workers in 2026

Pennsylvania's rate is low and flat, but with no employer to withhold it, you handle both state and local tax yourself. Here's what to plan for in 2026.

Published by Cadus Labs LLC · Last updated November 9, 2026 · How we write these guides

Based on the 2026 REV-413 instructions, Pennsylvania DCED guidance, and the City of Philadelphia.

Pennsylvania estimated tax payments for 2026

Pennsylvania's income tax rate is a flat 3.07%. You generally have to make estimated payments for 2026 if you can reasonably expect to owe at least $430 after withholding and credits, which works out to $14,000 of income that isn't subject to employer withholding.

The form is Form PA-40 ES (I), and you can generally pay online instead of mailing it.

2026 Pennsylvania estimated tax payment dates for calendar-year filers
Payment due	Share of the year's required payment
April 15, 2026	25%
June 15, 2026	25%
September 15, 2026	25%
January 15, 2027	25%

Local taxes on your earnings

Pennsylvania municipalities and school districts can levy a local earned income tax. Employers withhold it from wages, so if you're self-employed, no one is doing that for you. Check with your local tax collector for your rate and payment schedule.

Working in Philadelphia

Philadelphia's Net Profits Tax applies to sole proprietors, partnerships, and LLCs. Residents owe it even on business conducted outside the city, and non-residents owe it on business conducted in the city. For tax year 2025, the rates were 3.74% for residents and 3.43% for non-residents.

The city says you must file a return even if your business has an overall loss and no tax is due. Philadelphia also has a separate Business Income and Receipts Tax, so check the city's business tax pages.

Your federal tax comes first

Wherever you live, self-employed income is subject to federal income tax and self-employment tax. A single filer with $60,000 of net profit and no other income owes about $12,037 in federal tax for 2026, or 20% of profit, before any state or local tax.

Federal estimated payments are due April 15, June 15, and September 15, 2026, and January 15, 2027. Use our 1099 tax calculator to run your own numbers.

Recordkeeping checklist

Set aside for federal and state tax from every payment you receive.

Make federal and state estimated payments if you expect to owe enough.

Keep receipts and a mileage log for everything you deduct.

Find your local earned income tax rate and collector.

Free tools for this

Calculator

1099 and Self-Employment Tax Calculator

Enter your 1099 income and business expenses to estimate self-employment tax, federal income tax, and what to set aside each quarter. No sign-up, and nothing you type is saved.

Calculator

Quarterly Tax Set-Aside Calculator

Turn expected profit into a practical tax savings target, then use Cadus to keep income, expenses, deductions, receipts, and reports organized.

Template

Quarterly Tax Savings Worksheet

Use this worksheet to turn expected monthly profit into a practical tax savings target before estimated tax due dates arrive.

Template

Business Expense Log Template

Copy this table to start organizing business purchases, receipt proof, categories, and business purpose before moving records into Cadus.

Official sources

PA Revenue: 2026 REV-413 instructions PA DCED: local income tax Philadelphia: Net Profits Tax

Related guides

Self-employment tax guide

Self-Employment Tax

The self-employment tax rate is 15.3%. See who pays, how the 2026 wage base works, the deduction for half the tax, and a worked example.

Estimated tax guide

Quarterly Estimated Taxes

2026 estimated tax due dates, who has to pay, how to avoid the penalty, and a worked example for a self-employed worker earning $60,000.

Schedule C education

Schedule C Expense Categories

Every Schedule C expense line in plain English: what goes on each one, what doesn't, and the records to keep for self-employed workers.

Pennsylvania Taxes FAQ

What is the Pennsylvania income tax rate for self-employed people?

A flat 3.07%. Local earned income taxes are separate.

When do I have to make Pennsylvania estimated payments?

For 2026, generally when you can reasonably expect to owe at least $430 after withholding and credits, which is $14,000 of income not subject to employer withholding.

Do Philadelphia sole proprietors pay the Net Profits Tax?

Yes, it applies to sole proprietors, and you have to file even if your business has an overall loss.

Cadus educational content is not tax, legal, or accounting advice. Tax rules can change, and individual facts matter. Review official guidance or speak with a qualified tax professional before filing.