2026 tax year · Pennsylvania
Marketplace seller taxes in Pennsylvania
Etsy, eBay, Shopify and the rest report your gross and withhold nothing. The gap between that and what you are actually taxed on is your costs, in Pennsylvania that gap is worth $6,701 in tax.
Take a driver who grossed $45,000 over 18,000 business miles. After mileage at 74.3 cents and the rest of the stack, worked through on the marketplace seller page $26,775 comes off and $18,225 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 | $2,575 |
| Federal income tax | $67 |
| Pennsylvania income tax | $520 |
| Total tax | $3,162 |
| Effective rate on gross | 7.0% |
Earning more in Pennsylvania
A single filer taking the standard deduction, 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:
| Volume | Gross | Mileage off | Taxable profit | Pennsylvania tax | Total tax | Rate on gross |
|---|---|---|---|---|---|---|
| Part-time | $15,000 | $0 | $15,000 | $428 | $2,547 | 17.0% |
| Steady side income | $45,000 | $0 | $45,000 | $1,284 | $9,863 | 21.9% |
| Full-time | $72,000 | $0 | $72,000 | $2,054 | $16,858 | 23.4% |
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.
Selling into and out of Pennsylvania
Income tax follows you: Pennsylvania taxes your profit wherever the buyer was. Sales tax does not. Marketplace facilitator laws make the platform collect and remit sales tax on your behalf in most states, which is why a seller can have customers in all fifty and still file only one income tax return. Selling off-platform is where that stops being true.
On $18,225 of profit, what the states around Pennsylvania would charge:
| State | Its tax | vs Pennsylvania |
|---|---|---|
| Ohio | $0 | −$560 |
| New Jersey | $255 | −$304 |
| West Virginia | $442 | −$117 |
| Delaware | $656 | +$96 |
| New York | $734 | +$175 |
| Maryland | $813 | +$254 |
- Ohio would take $560 less, $0 against Pennsylvania's $560.
- New Jersey would take $304 less, $255 against Pennsylvania's $560.
- West Virginia would take $117 less, $442 against Pennsylvania's $560.
- Delaware would take $96 more, $656 against Pennsylvania's $560.
- New York would take $175 more, $734 against Pennsylvania's $560.
- Maryland would take $254 more, $813 against Pennsylvania's $560.
Marketplace seller tax questions in Pennsylvania
How much should a Pennsylvania seller set aside?
About 7.0% of gross on the $45,000 example, $3,162 across self-employment tax, federal income tax and $520 to Pennsylvania. Set aside from each payout rather than finding it in April.
Does the $45,000 on my 1099-NEC match what Pennsylvania taxes?
No. Pennsylvania taxes profit, not gross. After $26,775 of deductions the taxable figure is $18,225, so the Pennsylvania bill is $520 rather than what gross alone would suggest.