taxes

State taxes: Pennsylvania

Taxes » Income Taxes » State Taxes » Pennsylvania

Pennsylvania's state income tax rate is a flat 3.07 percent with no personal exemptions. More on Pennsylvania taxes can be found in the tabbed pages below.

Personal income tax

Pennsylvania has a flat tax rate of 3.07 percent on individual income, with no personal exemptions.

County, municipal and school district taxes also are collected. Those rates can be found on the state's tax website.

Pennsylvanians who live on a modest income may qualify for the state's Tax Forgiveness Credit.

Pennsylvania tax returns are due April 15, or the next business day if that date falls on a weekend or holiday.

Sales taxes

Pennsylvania imposes a 6 percent state sales tax on taxable goods and services.

A local sales tax of 1 percent is collected on sales of taxable goods and services initiated from a location in Allegheny County.

Local sales tax of 2 percent is collected on sales and services, except hotel rooms, by vendors located in Philadelphia County.

Personal and real property taxes

Pennsylvania does not levy or collect taxes on real estate or personal property. Those taxes are reserved for the local governments: counties, municipalities and school districts. Usually, all three districts levy real estate or property taxes, so you will need to know what county, school district and municipality you live in.

Municipalities (cities, townships and boroughs) are permitted to levy real estate property taxes that cannot exceed 30 mills on the assessed value of the property without special permission of the courts.

The Taxpayer Relief Act provides school districts the opportunity to offer lower property taxes to homeowners by implementing an additional earned income and net profits tax or a personal income tax.

The state's Property Tax/Rent Rebate program is available to qualified seniors and permanently disabled citizens. It is funded by the Pennsylvania Lottery and administered by the Pennsylvania Department of Revenue. The maximum standard rebate for the amount paid in property taxes or rent in the previous year is $650, but supplemental rebates for qualifying homeowners can boost rebates to $975.

Local governments can impose a variety of local taxes, from the earned income tax to the real property tax to various other taxes. Employers are required to withhold from employees earned income and emergency and municipal services taxes imposed by municipalities and school districts.

Inheritance and estate taxes

Pennsylvania has an inheritance tax. The tax rate varies depending on the relationship of the heir to the decedent, but could be as high as 15 percent.

Pennsylvania had an estate tax based on a decedent's total gross estate and limited to the credit for state death taxes allowed on the federal estate tax return. However, since the federal credit for state estate tax payments has been phased out, the Keystone State's estate tax is not imposed.

Other Pennsylvania tax facts

Taxpayers can go online to track the status of their refunds.

In an effort to collect unpaid state taxes, the Pennsylvania Department of Revenue publishes a list of delinquent sales and employer withholding tax accounts.

For more information, visit the Pennsylvania Department of Revenue's website. Residents may also contact the automated FACT and Information Line at (888) 728-2937.

To download tax forms on this site, you will need to install a free copy of Adobe Acrobat Reader. Click here for instructions.

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