![Wins Above Replacement Baseball Statistic how to think about the 2024 State Business Tax Climate Index rankings](https://taxfoundation.org/wp-content/uploads/2023/10/AdobeStock_42014191-300x200.jpeg)
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?
State Tax Data
Individual Taxes
Business Taxes
Sales Taxes
All Related Articles
![Wins Above Replacement Baseball Statistic how to think about the 2024 State Business Tax Climate Index rankings](https://taxfoundation.org/wp-content/uploads/2023/10/AdobeStock_42014191-300x200.jpeg)
![2024 State Business Tax Climate Index](https://taxfoundation.org/wp-content/uploads/2023/10/24SBTCI-social-sahre_exTwit-300x169.png)
2024 State Business Tax Climate Index
In recognition of the fact that there are better and worse ways to raise revenue, our Index focuses on how state tax revenue is raised, not how much. The rankings, therefore, reflect how well states structure their tax systems.
111 min read![](https://taxfoundation.org/wp-content/uploads/2022/10/Pennsylvania-Lee-300x192.jpeg)
Pennsylvania Cigarette Minimum Markups Will Cost the State $47 Million per Year
Minimum markup policies tend to be wildly unpopular among both taxpayers and policymakers. Lawmakers should carefully evaluate whether minimum markup laws are policies that improve the well-being of their constituents.
3 min read![Estate tax, federal estate tax State estate tax, State inheritance tax, Does your state have an estate tax or inheritance tax? Explore 2023 state estate taxes and 2023 state inheritance taxes](https://taxfoundation.org/wp-content/uploads/2023/10/2023-State-Estate-Tax-Rates-and-State-Inheritance-Tax-Rates-300x250.png)
Does Your State Have an Estate or Inheritance Tax?
In addition to the federal estate tax, with a top rate of 40 percent, some states levy an additional estate or inheritance tax.
4 min read![Real purchasing power parity by state, city, and county 2023 most expensive us cities and metros](https://taxfoundation.org/wp-content/uploads/2023/09/Real-purchasing-power-parity-by-state-city-and-county-2023-most-expensive-us-cities-and-metros-FV-300x250.jpg)
What Is the Real Value of $100 in Metropolitan Areas?
The differences in purchasing power can be large and they have significant implications for the relative impact of economic and tax policies across the United States.
3 min read![Tax treatment of electric vehicles ev taxes by state 2023 vehicle registration fees and EV tax credits](https://taxfoundation.org/wp-content/uploads/2023/09/EV-2023-1-300x250.jpg)
How Are Electric Vehicles Taxed in Your State?
The state EV taxation landscape reflects the evolving transportation sector and the pressing need to address both fiscal gaps in road funding and environmental concerns.
4 min read![SALT cap repeal impact by county state and local tax deduction reported on federal tax returns](https://taxfoundation.org/wp-content/uploads/2023/09/SALT-cap-repeal-impact-by-county-state-and-local-tax-deduction-reported-on-federal-tax-returns-300x250.png)
County Data Shows Repealing SALT Cap Would Benefit High-Income Earners
Any move to repeal the cap or enhance the deduction would disproportionately benefit higher earners, making the tax code more regressive.
5 min read![2023 property taxes by county property tax rates](https://taxfoundation.org/wp-content/uploads/2023/09/2023_property_tax_county-300x250.png)
Property Taxes by State and County, 2023
Property taxes are the primary tool for financing local governments and generate a significant share of state and local revenues.
6 min read![State semiconductor incentives and subsidies in the wake of the federal CHIPS Act or CHIPS and Science Act R&D legislation](https://taxfoundation.org/wp-content/uploads/2023/09/State-semiconductor-incentives-in-wake-of-CHIPS-Act-300x200.jpeg)
States Enact Semiconductor Subsidies in the Wake of CHIPS
Policymakers at all levels of government should avoid the pitfalls of incentives. Instead, they should focus on creating a more efficient, neutral, and structurally sound tax code to the benefit of all types of business investment.
6 min read![2023 State Vape Tax Rates Compare State Vapor Tax Rates and State Vaping Tax Rates](https://taxfoundation.org/wp-content/uploads/2023/08/2023-State-Vape-Tax-Rates-Compare-State-Vapor-Tax-Rates-and-State-Vaping-Tax-Rates-300x250.png)
Vaping Taxes by State, 2023
If the policy goal of taxing cigarettes is to encourage cessation, vapor taxation must be considered a part of that policy design.
3 min read