Today, the Tax Foundation is honoring six individuals with the second annual award for Outstanding Achievement in State Tax Reform. As the award’s name suggests, the honorees were selected due to their extraordinary...
The facts on Pennsylvania’s Tax Climate
3.07%Individual Income TaxFlat rate
9.99%Corporate Income TaxFlat rate
$1305Property Tax CollectionsPer Capita
Pennsylvania's Individual Income Tax System
Pennsylvania's personal income tax system consists of a flat rate of 3.07%. That rate ranks 8th lowest among states levying an individual income tax. Pennsylvania's state and local income tax collections per person were $1095 in 2011 which ranked 13th highest nationally.
50-State Table of Individual Income Tax Rates
50-State Table of State Individual Income Tax Collections
50-State Table of State and Local Individual Income Tax Collections Per Capita
Pennsylvania's Corporate Income Tax System
Pennsylvania's corporate income tax system consists of a flat rate of 9.99%. That rate ranks 2nd highest among states levying a corporate income tax. Pennsylvania's state and local corporate income tax collections per person were $179 in 2011 which ranked 12th highest nationally.
50-State Table of Corporate Income Tax Rates
50-State Table of State and Local Corporate Income Tax Collections Per Capita
50-State Table of State Corporate Income Tax Collections Per Capita
Pennsylvania Sales and Excise Taxes
Pennsylvania levies a 6% general sales or use tax on consumers, which is above the national median of 5.95%. The average local sales tax rate is an additional 0.34%. Pennsylvania's state and local governments collect $753 per person in general sales taxes and $658 per person in excise taxes, for a combined figure of $1411, which ranks 19th lowest nationally. Pennsylvania's gasoline tax stands at 41.8¢ (5th highest nationally), while its cigarette tax stands at $1.6 (21st highest nationally.)
50-State Table of State and Local General and Selective Sales Tax Collections Per Capita
Pennsylvania Property Tax Collections Average
Pennsylvania's state and local governments collected approximately $1305 per person in property taxes, which ranks 25th lowest nationally.
State and local property tax collections per capita by state
Tax Freedom Day Arrives on April 21st in Pennsylvania
Tax Freedom Day is the day when Americans finally have earned enough money to pay off their total tax bill for the year. In 2014, Pennsylvania taxpayers worked until April 21st (15th latest nationally) to pay their total tax bill. The Tax Freedom Days of neighboring states are: New York, May 4th (ranked 3rd latest nationally); New Jersey, May 9th (ranked latest nationally); Delaware, April 18th (ranked 19th latest nationally); Maryland, April 28th (ranked 7th latest nationally); Virginia, April 24th (ranked 11th latest nationally); and Ohio, April 14th (ranked 23rd earliest nationally).
Pennsylvania's State and Local Tax Burden Above National Average
Pennsylvania's 2011 tax burden of 10.35% ranks 10th highest out of 50 states, and is above the national average of 9.8%. Pennsylvania's taxpayers pay $4374 per capita in state and local taxes.
Pennsylvania's State-Local Tax Burden, 1977-Present
Other States' State/Local Tax Burdens
Map of U.S. Showing all State's Burdens and Ranks
Historical Chart Comparing All States' State/Local Tax Burdens from 1977 to 2009
Pennsylvania's 2014 Business Tax Climate Index Ranks 24
Pennsylvania ranks 24th in the Tax Foundation's State Business Tax Climate Index. The Index compares the states in five areas of taxation that impact business: corporate taxes, individual income taxes, sales taxes, unemployment insurance taxes, and taxes on property, including residential and commercial property. The ranks of neighboring states are as follows: New York, 50th, New Jersey, 49th, Delaware, 13th, Maryland, 41st, Virginia, 26th, and Ohio, 39th.
50-State Comparison of Business Tax Climates (data only) (2013)
2014 State Business Tax Climate Index (full study)
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