Pennsylvania State Taxes

Quick Tax Facts

Income Tax: 3.07%
State Sales Tax: 6%
Median Property Tax: $2,223

Overview

Pennsylvania is known as the birthplace of American democracy and Philly cheesesteaks. It is also home to the sweetest place on Earth – Hershey’s chocolate! What’s not so sweet are the taxes in the state. Although its flat income tax of 3.07% is fairly modest, property taxes and sales tax are on the higher end. Additionally, local governments can levy income taxes on residents’ incomes.

Pennsylvania Income Tax

Pennsylvania has a flat income tax rate of 3.07%. Local municipalities and school districts can also levy income taxes. The state taxes eight classes of income:

Compensation
Interest
Dividends
Net profits from the operation of a business, profession, or farm
Net gains or income from the dispositions of property
Net gains or income from rents, royalties, patents, and copyrights
Income derived through estates or trusts
Gambling and lottery winnings (excluding non-cash PA Lottery prizes)

A loss in one income class cannot offset income in another. Gains and losses may not be carried backward or forward from year to year.

Pennsylvania does not have a standard deduction or a personal exemption. Individuals, however, may reduce their tax liabilities through certain credits, deductions, and exclusions.

Who Must File?

Every resident, including part-year and non-residents, must file a Pennsylvania income tax return (PA-40) if they have income generating $1 or more in tax, even if no tax is due. Non-residents are only taxed on income they receive from Pennsylvania sources and do not qualify for the credit for taxes paid to other states.

Pennsylvania Sales Tax

Pennsylvania’s state sales tax rate is 6%. By law, an additional 1% local sales tax is added to purchases in Allegheny County. Purchases made in Philadelphia have an additional 2% local sales tax added.

Pennsylvania Property Taxes

Pennsylvania has one of the highest property tax burdens in the United States. Although it’s not as high as its neighbors, New Jersey and New York, it’s still above the national average.

On average, the median property tax bill in Pennsylvania is approximately $2,223 (based on a median home value of $164,700). Chester County has the highest property tax at an average of $4,192. The lowest amount is $860 in Forest County.

Pennsylvania Property Tax
Highest	$4192
Median	$2223
Lowest	$860

Yearly Cost Per Resident

Pennsylvania Tax Holidays

There are no sales tax holidays scheduled in Pennsylvania at this time.

Pennsylvania Tax Resources

If you need assistance preparing your Pennsylvania state taxes, you can speak with a tax professional from Tax Defense Network by calling 855-476-6920.

You can also visit the Pennsylvania Department of Revenue website for additional resources.