With a 3.07% top income tax rate and 1.49% property tax, Pennsylvania homeowners face a moderate combined tax burden. This calculator is pre-filled with Pennsylvania numbers: $270,000 median price, 1.49% property tax, $1,200/year insurance.
Last updated: March 13, 2026
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Monthly Payment (Pennsylvania)$0
Loan Details — Pennsylvania
Pennsylvania median: $270,000
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Below 20% triggers PMI on conventional loans
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Average 30-year fixed ~6.75% (March 2026)
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Pennsylvania average: 1.49%
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Pennsylvania average: $1,200/yr
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Principal & Interest
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Property Tax
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Pennsylvania Metro Area Home Prices
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Yearly Amortization Schedule+
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Pennsylvania's Tax Landscape and Your Mortgage
Pennsylvania levies a flat 3.07% income tax on all taxable income. A household earning $150,000 pays approximately $3,454 in state income tax, which reduces the amount available for monthly mortgage payments by roughly $288/month.
At the state's median home price of $270,000, the $1.49% property tax rate adds $335/month to your mortgage payment. That's $4,023/year — well above the national median of ~1.1%.
Property Taxes Across Pennsylvania
The 1.49% statewide average masks significant variation. Property taxes are high (especially in suburban Philadelphia school districts)
Price ranges across the state: Philadelphia suburbs has a median of $385,000, while Pittsburgh sits at $245,000 — a $140,000 gap that dramatically changes your monthly payment. At $1.49% property tax, that price difference alone means $174/month more in property tax in Philadelphia suburbs.
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Homebuyer Programs and Exemptions
Pennsylvania offers several programs for homebuyers:
PHFA Keystone Home Loan with competitive rates
Keystone Advantage Assistance up to 4% of purchase price or $6,000
Homestead exemption: Varies by school district — approved by voter referendum; some districts offer $0 exemption, others up to $50,000+
Pennsylvania-Specific Considerations
Low flat income tax rate of 3.07% but many municipalities levy Earned Income Tax (EIT) of 1-3.1%
Philadelphia wage tax is 3.75% for residents (one of the highest local income taxes in the nation)
Property taxes are high (especially in suburban Philadelphia school districts)
No tax on retirement income — pensions, 401(k), Social Security all exempt
Transfer tax of 2% (split between state and local)
Compare Pennsylvania Mortgage Rates
See personalized rates from Pennsylvania lenders. LendingTree matches you with up to 5 offers so you can compare and save.
0.39% property tax, 5% top rate. Median home: $232,500.
Alaska Mortgage Calculator
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1.04% property tax, no income tax. Median home: $340,000.
Arizona Mortgage Calculator
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0.62% property tax, 2.5% top rate. Median home: $395,000.
Frequently Asked Questions
What is the average property tax rate in Pennsylvania?
The average effective property tax rate in Pennsylvania is 1.49%. On a $270,000 home (the state median), that works out to approximately $4,023/year or $335/month added to your mortgage payment. Property tax rates vary by county and school district within Pennsylvania — always check your specific jurisdiction's rate. Homestead exemption: Varies by school district — approved by voter referendum; some districts offer $0 exemption, others up to $50,000+
How much does homeowners insurance cost in Pennsylvania?
The average annual homeowners insurance premium in Pennsylvania is approximately $1,200 ($100/month). This is near the national average of approximately $1,500/year. Actual premiums depend on your home's location, age, construction type, and coverage limits.
What first-time homebuyer programs are available in Pennsylvania?
PHFA Keystone Home Loan with competitive rates. Keystone Advantage Assistance up to 4% of purchase price or $6,000. These programs typically have income limits, purchase price caps, and may require homebuyer education courses. Check the Pennsylvania housing finance agency website for current eligibility requirements and application deadlines.
How does Pennsylvania's 3.07% income tax affect home affordability?
Pennsylvania's top income tax rate of 3.07% reduces your take-home pay, which affects how much mortgage you can comfortably carry. On a $150,000 salary, state income tax takes roughly $2,993-$3,914/year (effective rate is lower than the top marginal rate). Combined with 1.49% property tax, the total tax burden in Pennsylvania is above average. Use our paycheck calculator to see your exact take-home pay.
What is the conforming loan limit in Pennsylvania?
The 2026 conforming loan limit in Pennsylvania is $806,500. Loans above this amount are considered jumbo loans and typically carry higher interest rates (0.25-0.5% premium), require larger down payments (10-20%), and have stricter qualification requirements including higher credit scores (700+) and lower debt-to-income ratios.
This calculator is for educational purposes. Tax rates and insurance costs are based on Pennsylvania state averages and may not reflect your specific county, school district, or municipality. Consult a financial professional for advice specific to your situation.