2026 tax year · Pennsylvania

Services and task work taxes in Pennsylvania

TaskRabbit, Rover, Upwork and the rest report your gross and withhold nothing. The gap between that and what you are actually taxed on is mileage, in Pennsylvania that gap is worth $2,205 in tax.

Take a driver who grossed $34,000 over 18,000 business miles. After mileage at 74.3 cents and the rest of the stack, worked through on the services and task work page $9,030 comes off and $24,970 is left as taxable profit. That profit is what Pennsylvania and the IRS charge against.

What that leaves you owing in Pennsylvania

Pennsylvania taxes income at a flat 3.07% for 2026, applied on top of federal income tax and self-employment tax.

Self-employment tax$3,528
Federal income tax$568
Pennsylvania income tax$712
Total tax$4,809
Effective rate on gross14.1%

Earning more in Pennsylvania

A single filer taking the standard deduction, standard mileage method, this work as the only income, the calculator above handles the other filing statuses. Miles rise with earnings, so the deduction rises too, and the effective rate on gross climbs more slowly than it would for someone whose income grew without expenses attached:

VolumeGrossMileage offTaxable profitPennsylvania taxTotal taxRate on gross
Part-time $11,000 $1,485 $9,515 $271 $1,616 14.7%
Steady side income $34,000 $4,455 $29,545 $843 $5,926 17.4%
Full-time $55,000 $7,425 $47,575 $1,357 $10,530 19.1%

Switching state opens that state's page.

Enter your numbers and press Calculate to see your 2026 estimate.

Pennsylvania specifics that change the number

Pennsylvania also has local income tax that the estimate above does not model, many municipalities levy earned income tax. Philadelphia: 3.75% resident.. Add it separately for where you live and work.

Working across a Pennsylvania line

Services income is sourced to where the work was physically done. A job over the line can create a filing obligation in that state even for a single afternoon, and reciprocity agreements do not help, they cover wages paid by an employer, not self-employment income.

On $24,970 of profit, what the states around Pennsylvania would charge:

StateIts taxvs Pennsylvania
Ohio $0 −$767
New Jersey $367 −$400
West Virginia $632 −$135
Delaware $999 +$233
New York $1,048 +$282
Maryland $1,134 +$367

Services and task work tax questions in Pennsylvania

How much should a Pennsylvania contractor set aside?

About 14.1% of gross on the $34,000 example, $4,809 across self-employment tax, federal income tax and $712 to Pennsylvania. Set aside from each payout rather than finding it in April.

Does the $34,000 on my 1099-NEC match what Pennsylvania taxes?

No. Pennsylvania taxes profit, not gross. After $9,030 of deductions the taxable figure is $24,970, so the Pennsylvania bill is $712 rather than what gross alone would suggest.

Related