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Pennsylvania Payroll Taxes for Employers (2026): SUTA and State Programs

Last updated: 2026-10-12 · 2026 rates checked against PA Dept. of Labor & Industry's own pages and the other official sources below

Pennsylvania employers pay state unemployment tax (SUTA) on the first $10,000 of each employee's wages in 2026, and new employers pay 3.822% — at most $382.20 per employee for the year. Employees also pay 0.07% of all wages, which you withhold. Every Pennsylvania employer also pays federal Social Security (6.2% up to $184,500), Medicare (1.45%) and FUTA (0.6% on the first $7,000).

SUTA wage base
$10,000
per employee, 2026
New-employer rate
3.822%
2026
New-employer max
$382.20
SUTA per employee per year
FUTA
0.6%
$42 per employee

What will payroll taxes cost me in Pennsylvania?

Enter your headcount and average pay to see the employer's share of Pennsylvania and federal payroll taxes for 2026. Change the SUTA rate to the one on your rate notice.

Pennsylvania employer payroll tax estimator · 2026

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3.822% is the 2026 new-employer rate. Enter your assigned rate once you have one.
Estimated annual employer payroll taxes
TaxPer year
Pennsylvania unemployment (SUTA)
3.822% × first $10,000 per employee
$1,911
Federal unemployment (FUTA)
0.6% × first $7,000 after the full state credit
$210
Social Security (employer half)
6.2% × first $184,500
$15,500
Medicare (employer half)
1.45% of all wages
$3,625
Total employer taxes$21,246
Per employee$4,249

Assumes every employee earns the average and works in Pennsylvania all year. Workers' comp premiums and benefits are extra — the payroll cost calculator adds them.

Pennsylvania unemployment insurance tax (SUTA) in 2026

2026 taxable wage base
$10,000 per employee (33rd highest of 51)
New-employer rate
3.822%
How the new-employer rate works
Newly liable non-construction employers 3.822% (includes the 9.2% surcharge); construction 10.5924%. Employees pay 0.07% of all wages.
Most a new employer pays per employee
$382.20 (3.822% × $10,000)
Experience-rated range (2026, as published)
1.419% to 10.3734%
2025 average employer rate
3.52% of taxable wages (U.S. DOL)
Employee contribution
0.07% of all wages — withheld from pay
Agency
PA Dept. of Labor & Industry

Register with PA Dept. of Labor & Industry when you first pay wages in Pennsylvania; you get an account number for quarterly wage reports and tax payments.

Federal payroll taxes every Pennsylvania employer pays

  • Social Security: 6.2% from you and 6.2% withheld from the employee, on wages up to $184,500 in 2026.
  • Medicare: 1.45% each on all wages; withhold an extra 0.9% (employee only) on wages over $200,000.
  • FUTA: 6.0% of the first $7,000 per employee, less up to 5.4% credit for Pennsylvania unemployment tax paid on time = 0.6%, or $42 per employee.
  • Federal income tax withholding from each paycheck based on the employee's Form W-4.

Next for Pennsylvania employers: Pennsylvania paycheck calculator (employee withholding) · Pennsylvania new hire reporting · Pennsylvania payday & final paycheck rules · Pennsylvania workers' comp · full payroll cost calculator

Pennsylvania payroll tax FAQ

What is the Pennsylvania SUTA rate for new employers in 2026?

3.822%. Newly liable non-construction employers 3.822% (includes the 9.2% surcharge); construction 10.5924%. Employees pay 0.07% of all wages.

What is the Pennsylvania SUTA wage base for 2026?

$10,000 per employee. Once an employee's 2026 wages pass that amount, you stop paying Pennsylvania unemployment tax on them for the rest of the year. That is the 33rd highest wage base of the 50 states and DC (the federal FUTA base is $7,000).

Do employees pay unemployment tax in Pennsylvania?

Yes. Pennsylvania is one of three states (with Alaska, New Jersey and Pennsylvania) where employees contribute: 0.07% of all wages in 2026, withheld by the employer.

What other payroll taxes do Pennsylvania employers pay?

For 2026, Pennsylvania has no statewide paid-leave or disability payroll tax, so the state-level employer tax is unemployment insurance. You still withhold any state income tax from employees' pay.

How much FUTA do Pennsylvania employers pay?

0.6% of the first $7,000 of each employee's wages — $42 per employee per year — after the full 5.4% credit for paying Pennsylvania unemployment tax on time. Pennsylvania is not a credit-reduction state for 2026.

How does my Pennsylvania SUTA rate change after the first years?

New employers keep the new-employer rate until they have enough history to be experience-rated (the timing is set by state law). After that, PA Dept. of Labor & Industry assigns a rate each year based on your layoffs and benefit charges; published 2026 rates run from 1.419% to 10.3734%. Use the rate on your annual rate notice. The 2025 average employer rate in Pennsylvania was 3.52% of taxable wages.

Official Sources

Figures checked against these sources on 2026-10-12

Related Resources on This Site

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General information, not tax advice. Rates change every year; confirm yours on the notice from PA Dept. of Labor & Industry before filing.