Pennsylvania minimum wage in 2026 (and 2027)

How Pennsylvania's rate compares with its neighbors

Pennsylvania has its own minimum wage law, but its rate matches the federal $7.25 and has not moved since 2009. By our count of the 50-state data, Pennsylvania is one of 20 states where $7.25 is the working floor: 18 set or follow $7.25, and Georgia and Wyoming have lower state rates that the federal $7.25 overrides for FLSA-covered employers.

That gap matters for employers near state lines. A worker in Philadelphia earns at least $7.25, while one across the river in New Jersey earns at least $15.92 at most employers ($15.23 at small and seasonal ones). Delaware and Maryland are at $15.00, New York pays $16.00 outside the New York City region, Ohio pays $11.00 for larger employers, and West Virginia pays $8.75 at employers with six or more workers at one location.

Tipped workers: $2.83, not $2.13

Pennsylvania's tipped cash wage is $2.83 an hour, higher than the federal $2.13, so the largest tip credit you can take is $4.42 an hour ($7.25 minus $2.83). Pennsylvania's tipped threshold is $135 a month in tips (U.S. Department of Labor tipped table), a much higher bar than the federal test of more than $30 a month. If tips plus cash wages do not reach $7.25 an hour, you make up the difference.

Restaurants that also run a location in Delaware, Maryland or Ohio need separate tipped rates for each state. Our restaurant payroll guide compares tools that handle that.

$7.25 an hour, worked out

On a full-time schedule, $7.25 pays $290.00 weekly, $1,256.67 monthly and $15,080.00 over 2,080 hours. Overtime under the federal FLSA is time and a half past 40 hours in a workweek, which makes an overtime hour at the minimum $10.88 ($7.25 x 1.5 = $10.875).

Employer payroll taxes on a $7.25 worker

Pennsylvania also takes 0.07% of all wages from the worker for unemployment, $10.56 a year at this pay. Local taxes are where Pennsylvania gets complicated: most municipalities levy an earned income tax and a local services tax, and Philadelphia has its own wage tax. See Pennsylvania local earned income tax and Philadelphia payroll taxes before you run the first payroll, and the Pennsylvania payroll tax guide for registration.

Payroll software for Pennsylvania employers

The minimum wage itself is simple here. The withholding is not, because each worker's local tax depends on where they live and work. Pick payroll software that assigns local tax codes automatically. One option, Gusto Simple, lists $49 monthly plus $6 for each person paid (checked October 16, 2026). Weigh it against rivals in our list of payroll software or see payroll service costs by team size.

Run your own numbers in the employee cost calculator.