Average Salary in Pennsylvania (PA)

Pennsylvania has one of the lowest flat-rate state income taxes in the country at 3.07%, and it is the only state whose flat rate is effectively constrained by the Uniformity Clause of its state constitution — meaning any change requires a politically costly amendment process. The $73,170 median household income sits close to the national average, and the cost-of-living index of 96 puts the state 4% below the national benchmark. That combination — modest income tax, reasonable cost of living — is what keeps Pennsylvania attractive even as it loses residents to faster-growing Sun Belt states. The economy is fragmented by geography. Philadelphia is dominated by healthcare, education, and pharmaceutical giants (UPMC competes with the University of Pennsylvania Health System for the largest-employer title statewide). Pittsburgh has successfully pivoted from steel to tech, healthcare, and robotics; UPMC alone employs over 90,000 people in the region. The central and northern counties lean toward manufacturing, agriculture, and natural gas extraction in the Marcellus Shale. The $7.25/hour minimum wage remains at the federal floor — a standing point of political tension — and bills to raise it to $15 move through the legislature every few years without passing. Property taxes vary widely by county. Detailed data follows.