Regular readers of Tax Foundation reports know that we publish estimates of the distributional impact of federal tax changes: that is, we estimate how a tax reform might affect the after-tax incomes of taxpayers at...
The facts on Pennsylvania’s Tax Climate
3.07%Individual Income TaxFlat rate
9.99%Corporate Income TaxFlat rate
$1,376Property Tax CollectionsPer Capita
Pennsylvania's Individual Income Tax System
Pennsylvania's individual income tax system consists of a flat rate of 3.07%. That rate ranks 42nd highest among states levying an individual income tax. Pennsylvania's state and local tax collections per person were $1,201 in 2013, which ranked 15th highest nationally.
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 $201 in 2013 which ranked 10th highest nationally.
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 0.3%. Pennsylvania's state and local governments collect $778 per person in general sales taxes and $662 per person in excise taxes, for a combined figure of $1,440, which ranks 28th highest nationally. Pennsylvania's gasoline tax stands at 50.4 cents per gallon, 1st highest nationally, while its cigarette tax stands at $1.60, 22nd highest nationally.
Pennsylvania Property Tax Collections Average
Pennsylvania's state and local governments collected approximately $1,376 per person in property taxes in 2013, which ranks 21st nationally.
Tax Freedom Day Arrives on April 22nd in Pennsylvania
Tax Freedom Day is the day when Americans have finally earned enough money to pay off their total tax bill for the year. In 2016, Pennsylvania taxpayers have to work until April 22nd (32nd earliest nationally) to pay their total tax bill.
Pennsylvania's State and Local Tax Burden Ranks 15th
Pennsylvania's 2012 tax burden of 10.2% ranks 15th highest in the nation, and is above the national average of 9.9%. Pennsylvania's taxpayers pay $4,589 per capita in state and local taxes.
Pennsylvania's State-Local Tax Burden, 1977-Present
Pennsylvania's 2016 Business Tax Climate Index Ranks 32nd
Pennsylvania ranks 32nd on the Tax Foundation's State Business Tax Climate Index. The Index compares the states in five areas of taxation that impact business: corporate taxes (47th), individual income taxes (17th), sales taxes (25th), unemployment insurance taxes (50th), and taxes on property (38th), including residential and commercial property.
State Business Tax Climate Index (full study)
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