Pennsylvania Tax Rates, Collections, and Burdens
How does Pennsylvania’s tax code compare? Pennsylvania has a flat 3.07 percent individual income tax rate. There are also jurisdictions that collect local income taxes. Pennsylvania has an 8.49 percent corporate income tax rate. Pennsylvania has a 6.00 percent state sales tax rate and an average combined state and local sales tax rate of 6.34 percent. Pennsylvania also has a 1.26 percent effective property tax rate on owner-occupied housing value.
Pennsylvania has an inheritance tax. Pennsylvania has a 58.7 cents per gallon gas tax rate and a $2.60 cigarette excise tax rate. The State of Pennsylvania collects $6,264 in state and local tax collections per capita. Pennsylvania has $9,894 in state and local debt per capita and has a 68 percent funded ratio of public pension plans. Overall, Pennsylvania’s tax system ranks 31st on our 2024 State Business Tax Climate Index.
Each state’s tax code is a multifaceted system with many moving parts, and Pennsylvania is no exception. The first step towards understanding Pennsylvania’s tax code is knowing the basics. How does Pennsylvania collect tax revenue? Click the tabs below to learn more! You can also explore our state tax maps, which are compiled from our annual publication, Facts & Figures 2024: How Does Your State Compare?
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