-
Overall Rank
30
No change since 2026 -
35
Down 1 place since 2026 -
34
Up 1 place since 2026 -
18
No change since 2026 -
11
Up 1 place since 2026 -
Unemployment Insurance Tax Rank
35
Down 1 place since 2026
Pennsylvania ranks 30th overall on the 2027 State Tax Competitiveness Index.
Score 5.04 / 10
About Pennsylvania's Tax Code
Pennsylvania has a low, flat state-level individual income tax rate of 3.07 percent, but many residents are subject to local earned income taxes imposed by municipalities and school districts. Although these taxes apply mainly to wages and other earned income rather than the broader state income tax base, they can significantly increase tax liability in certain jurisdictions within the Commonwealth. Additionally, Pennsylvania maintains an uncompetitive “convenience of the employer rule,” which can lead to double taxation for remote employees working for businesses located in the Commonwealth—ultimately a disincentive for businesses to locate in the state if they want to be able to hire across the country. Pennsylvania also requires individual income tax filing and withholding for nonresidents working even a single day in the state.
Pennsylvania’s corporate income tax rate is unusually high at 7.49 percent, but it is slowly phasing down to a competitive 4.99 percent. Pennsylvania is among the very few states to significantly cap net operating loss carryforwards, limiting them to 50 percent of taxable income in tax year 2026. Legislation enacted in 2025 will phase this cap up to 80 percent by 2029. The Commonwealth is decoupled from federal bonus depreciation—Section 168(k)—which permanently allows immediate full expensing of qualified machinery and equipment investments. The state is also decoupled from Section 174A, which permanently restores full expensing for domestic research and development costs. Additionally, it limits Section 179 expensing for pass-through businesses to $1.25 million in annual expenses, whereas most states offer $2.56 million. Conformity to these provisions could improve the Commonwealth’s tax competitiveness.
Pennsylvania’s local taxes are among the most complex and burdensome in the country. Localities with existing gross receipts taxes are allowed to retain them, though new local gross receipts taxes cannot be created. Local governments, meanwhile, operate under a patchwork of different state-imposed tax rules, with Philadelphia possessing unique authority given to no other jurisdiction.
Pennsylvania is one of only five states that still impose an inheritance tax, making the state less attractive to high-net-worth individuals.
Component Scores
#30 overall · 5.04 / 10Each component is scored from 0 to 10, where 10 is best. Select a component for its detail page.
| Component | Rank | Score | |
|---|---|---|---|
| Corporate Taxes | #35 | 4.84 / 10 | |
| Individual Income Taxes | #34 | 4.94 / 10 | |
| Sales Taxes | #18 | 5.08 / 10 | |
| Property Taxes | #11 | 5.82 / 10 | |
| Unemployment Insurance Taxes | #35 | 4.63 / 10 |
Ranking Changes, 2020–2027
#30 in 2027 · up 3 places from 2020Pennsylvania ranked 33rd in 2020 and ranks 30th in 2027, an improvement of 3 places. The axis is zoomed to the state's range. Ranks for 2020 through 2026 are backcast under the current methodology.
Show the Table
| Year | Overall | Corporate | Individual Income | Sales | Property | Unemployment Insurance |
|---|---|---|---|---|---|---|
| 2020 | 33 (4.78) | 42 (4.68) | 39 (4.74) | 28 (4.73) | 10 (5.77) | 46 (3.90) |
| 2021 | 33 (4.81) | 40 (4.69) | 40 (4.75) | 26 (4.73) | 9 (5.79) | 46 (4.09) |
| 2022 | 34 (4.88) | 42 (4.67) | 39 (4.79) | 25 (4.78) | 9 (5.77) | 35 (4.58) |
| 2023 | 34 (4.90) | 43 (4.62) | 39 (4.76) | 22 (4.89) | 9 (5.81) | 36 (4.63) |
| 2024 | 33 (5.00) | 39 (4.78) | 33 (4.99) | 20 (4.88) | 8 (5.79) | 40 (4.61) |
| 2025 | 28 (5.06) | 35 (4.84) | 35 (4.96) | 20 (4.88) | 6 (6.12) | 35 (4.62) |
| 2026 | 30 (5.03) | 34 (4.90) | 35 (4.92) | 18 (5.04) | 12 (5.73) | 34 (4.61) |
| 2027 | 30 (5.04) | 35 (4.84) | 34 (4.94) | 18 (5.08) | 11 (5.82) | 35 (4.63) |
Pennsylvania Compared across the States
#30 overallEach row places the states on a 0 to 10 score scale for one measure. Pennsylvania is the large outlined dot, and the dashed line is the 50-state median, so a dot to its right scores better than the typical state. Hover over or tab to any dot for detail, and select it to open that state's profile.
Overall
#30 5.04
Corporate Taxes
#35 4.84
Individual Income Taxes
#34 4.94
Sales Taxes
#18 5.08
Property Taxes
#11 5.82
Unemployment Insurance Taxes
#35 4.63
- Pennsylvania
- Other states, by rank (1st to 50th)
- 50-state median
Pennsylvania and Its Neighbors
#30 overallPennsylvania borders 6 states and ranks 30th overall; 2 of them rank higher and 4 rank lower.
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Delaware #22 Score 5.30 8 places better -
West Virginia #29 Score 5.09 1 place better -
Pennsylvania #30 Score 5.04 This state -
Ohio #36 Score 4.85 6 places behind -
Maryland #44 Score 4.35 14 places behind -
New Jersey #48 Score 3.92 18 places behind -
New York #50 Score 3.66 20 places behind
What Each Component Includes
The five components of the Index, what each one covers, and where Pennsylvania lands. Open any component for the full breakdown.
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Corporate Taxes
Rank #35Includes corporate income taxes and gross receipts taxes. Measures the impact of each state’s principal tax on business activities.
Full Breakdown for Pennsylvania → -
Individual Income Taxes
Rank #34Covers the tax individuals pay on income, and with it a significant number of businesses — sole proprietorships, partnerships, and S corporations — that report their income through the individual income tax code.
Full Breakdown for Pennsylvania → -
Sales Taxes
Rank #18Covers the general sales tax levied on the purchase price of goods and services, plus excise taxes on gasoline, diesel, tobacco, vapor products, beer, and spirits, and taxes on digital advertising.
Full Breakdown for Pennsylvania → -
Property Taxes
Rank #11Includes taxes on real and personal property, net worth, and the transfer of assets — among them capital stock, estate, inheritance, and real estate transfer taxes.
Full Breakdown for Pennsylvania → -
Unemployment Insurance Taxes
Rank #35Covers the taxes employers pay into the state unemployment insurance program to finance benefits for workers recently unemployed.
Full Breakdown for Pennsylvania →
Tax Data Explorer
Every policy variable behind Pennsylvania's 2027 scores, grouped by the report's tables, as of July 1, 2026. Its bordering states are shown alongside to start. Search the variables and values, or add up to 4 states to compare side by side.
159 data points · Shaded values differ from Pennsylvania
Corporate Taxes: Corporate Income Tax Rates
| Variable | Pennsylvania | Delaware | Maryland | New Jersey | New York | Ohio | West Virginia |
|---|---|---|---|---|---|---|---|
| Bracket 1 | 7.49% > $0 | 8.7% > $0 (differs) | 8.25% > $0 (differs) | 6.5% > $0 (differs) | 6.5% > $0 (differs) | None (differs) | 6.5% > $0 (differs) |
| Bracket 2 | n.a. | n.a. | n.a. | 7.5% > $50,000 (differs) | 7.25% > $5,000,000 (differs) | n.a. | n.a. |
| Bracket 3 | n.a. | n.a. | n.a. | 9.0% > $100,000 (differs) | n.a. | n.a. | n.a. |
| Bracket 4 | n.a. | n.a. | n.a. | 11.5% > $10,000,000 (differs) | n.a. | n.a. | n.a. |
| Gross Receipts Tax | No | Yes (differs) | No | No | No | Yes (differs) | No |
| Gross Receipts Tax Minimum Rate | n.a. | 0.0945% (differs) | n.a. | n.a. | n.a. | 0.26% (differs) | n.a. |
| Gross Receipts Tax Maximum Rate | n.a. | 0.7468% (differs) | n.a. | n.a. | n.a. | 0.26% (differs) | n.a. |
| Gross Receipts Tax Rate Used in the Index | n.a. | 0.7468% (differs) | n.a. | n.a. | n.a. | 0.26% (differs) | n.a. |
Corporate Taxes: Tax Credits and Gross Receipts Deductions
| Variable | Pennsylvania | Delaware | Maryland | New Jersey | New York | Ohio | West Virginia |
|---|---|---|---|---|---|---|---|
| Job Credits | Yes | Yes | Yes | Yes | Yes | Yes | Yes |
| Research and Development Credits | Yes | Yes | Yes | Yes | Yes | Yes | Yes |
| Investment Credits | Yes | Yes | No (differs) | Yes | Yes | Yes | Yes |
| Compensation Expenses Deductible | n.a. | No (differs) | n.a. | n.a. | n.a. | No (differs) | n.a. |
| Cost of Goods Sold Deductible | n.a. | No (differs) | n.a. | n.a. | n.a. | No (differs) | n.a. |
Corporate Taxes: Net Operating Losses
| Variable | Pennsylvania | Delaware | Maryland | New Jersey | New York | Ohio | West Virginia |
|---|---|---|---|---|---|---|---|
| Conforms to Federal NOL Treatment | No | Yes (differs) | Yes (differs) | No | No | n.a. (differs) | Yes (differs) |
| Carryback (Years) | 0 | Conforms to federal treatment (differs) | Conforms to federal treatment (differs) | 0 | 3 (differs) | n.a. (differs) | Conforms to federal treatment (differs) |
| Carryback Cap | $0 | Conforms to federal treatment (differs) | Conforms to federal treatment (differs) | $0 | Unlimited (differs) | n.a. (differs) | Conforms to federal treatment (differs) |
| Carryforward (Years) | 20 | Conforms to federal treatment (differs) | Conforms to federal treatment (differs) | 20 | 20 | n.a. (differs) | Conforms to federal treatment (differs) |
| Carryforward Cap | 50% of Liability | Conforms to federal treatment (differs) | Conforms to federal treatment (differs) | 80% (differs) | Unlimited (differs) | n.a. (differs) | Conforms to federal treatment (differs) |
Corporate Taxes: Treatment of Capital Investment
| Variable | Pennsylvania | Delaware | Maryland | New Jersey | New York | Ohio | West Virginia |
|---|---|---|---|---|---|---|---|
| Section 168(k) Expensing | 0% | 20% (differs) | 0% | 0% | 0% | 100% (differs) | 100% (differs) |
| Conforms to Section 163(j) Limitation | Yes | Yes | Yes | Yes | Yes | No (differs) | Yes |
| GILTI Inclusion | Decouples | 60% Inclusion (differs) | 50% Inclusion (differs) | 5% Inclusion (differs) | 5% Inclusion (differs) | n.a. (differs) | 50% Inclusion (differs) |
| Section 174 Expensing | No | Yes (differs) | Yes (differs) | Yes (differs) | No | Yes (differs) | Yes (differs) |
| Section 168(n) Expensing | No | No | No | Yes (differs) | No | Yes (differs) | Yes (differs) |
Corporate Taxes: Other Corporate Base Variables
| Variable | Pennsylvania | Delaware | Maryland | New Jersey | New York | Ohio | West Virginia |
|---|---|---|---|---|---|---|---|
| Federal Income Used as State Tax Base | Yes | Yes | Yes | Yes | Yes | Yes | Yes |
| Conformity Status | Rolling | Rolling | Rolling | Rolling | Rolling | Static (current) (differs) | Static (current) (differs) |
| Allows Federal ACRS or MACRS Depreciation | Yes | Yes | Yes | Yes | Yes | Yes | Yes |
| Allows Federal Depletion | Yes | Partial (differs) | Partial (differs) | Yes | Yes | Yes | Yes |
| Throwback Rule | No | No | No | No | No | No | No |
| Foreign Tax Deductibility | No | No | Yes (differs) | No | Yes (differs) | Yes (differs) | No |
| Corporate AMT | No | No | No | No | No | No | No |
| Brackets Indexed for Inflation | Flat CIT | Flat CIT | Flat CIT | No (differs) | No (differs) | GRT (differs) | Flat CIT |
Individual Income Taxes: Individual Income Tax Rates
| Variable | Pennsylvania | Delaware | Maryland | New Jersey | New York | Ohio | West Virginia |
|---|---|---|---|---|---|---|---|
| Bracket 1 | 3.07% > $0 | 2.2% > $2,000 (differs) | 2.0% > $0 (differs) | 1.4% > $0 (differs) | 3.9% > $0 (differs) | 2.75% > $26,050 (differs) | 2.11% > $0 (differs) |
| Bracket 2 | n.a. | 3.9% > $5,000 (differs) | 3.0% > $1,000 (differs) | 1.75% > $20,000 (differs) | 4.4% > $8,500 (differs) | n.a. | 2.81% > $10,000 (differs) |
| Bracket 3 | n.a. | 4.8% > $10,000 (differs) | 4.0% > $2,000 (differs) | 3.5% > $35,000 (differs) | 5.15% > $11,700 (differs) | n.a. | 3.16% > $25,000 (differs) |
| Bracket 4 | n.a. | 5.2% > $20,000 (differs) | 4.75% > $3,000 (differs) | 5.525% > $40,000 (differs) | 5.4% > $13,900 (differs) | n.a. | 4.22% > $40,000 (differs) |
| Bracket 5 | n.a. | 5.55% > $25,000 (differs) | 5.0% > $100,000 (differs) | 6.37% > $75,000 (differs) | 5.9% > $80,650 (differs) | n.a. | 4.58% > $60,000 (differs) |
| Bracket 6 | n.a. | 6.6% > $60,000 (differs) | 5.25% > $125,000 (differs) | 8.97% > $500,000 (differs) | 6.85% > $215,400 (differs) | n.a. | n.a. |
| Bracket 7 | n.a. | n.a. | 5.5% > $150,000 (differs) | 10.75% > $1,000,000 (differs) | 9.65% > $1,077,550 (differs) | n.a. | n.a. |
| Bracket 8 | n.a. | n.a. | 5.75% > $250,000 (differs) | n.a. | 10.3% > $5,000,000 (differs) | n.a. | n.a. |
| Bracket 9 | n.a. | n.a. | 6.25% > $500,000 (differs) | n.a. | 10.9% > $25,000,000 (differs) | n.a. | n.a. |
| Bracket 10 | n.a. | n.a. | 6.5% > $1,000,000 (differs) | n.a. | n.a. | n.a. | n.a. |
| Standard Deduction (Single Filer) | n.a. | $3,250 (differs) | $3,350 (differs) | n.a. | $8,000 (differs) | n.a. | n.a. |
| Personal Exemption (Single Filer) | n.a. | n.a. | $3,200 (differs) | $1,000 (differs) | n.a. | $2,400 (differs) | $2,000 (differs) |
| Personal Exemption Credit (Single Filer) | n.a. | $110 (differs) | n.a. | n.a. | n.a. | n.a. | n.a. |
| Personal Exemption per Dependent | n.a. | n.a. | $3,200 (differs) | $1,500 (differs) | $1,000 (differs) | $2,400 (differs) | $2,000 (differs) |
| Personal Exemption Credit per Dependent | n.a. | $110 (differs) | n.a. | n.a. | n.a. | n.a. | n.a. |
| Average Local Income Tax Rate | 3.37% | 0.63% (differs) | 3.20% (differs) | None (differs) | 1.94% (differs) | 2.50% (differs) | 0.42% (differs) |
| Surtaxes on Wage Income | n.a. | n.a. | n.a. | n.a. | n.a. | n.a. | n.a. |
Individual Income Taxes: Marriage Penalty, Capital Income, Indexation
| Variable | Pennsylvania | Delaware | Maryland | New Jersey | New York | Ohio | West Virginia |
|---|---|---|---|---|---|---|---|
| Marriage Penalty | No | Yes (differs) | Yes (differs) | Yes (differs) | Yes (differs) | Yes (differs) | Yes (differs) |
| Married Couples Can File Separately on One Return | No | Yes (differs) | No | No | No | No | Yes (differs) |
| Convenience Rule | Yes | Yes | No (differs) | Partial (differs) | Yes | No (differs) | No (differs) |
| Interest Taxed | Yes | Yes | Yes | Yes | Yes | Yes | Yes |
| Dividends Taxed | Yes | Yes | Yes | Yes | Yes | Yes | Yes |
| Capital Gains Taxed | Yes | Yes | Yes | Yes | Yes | Yes | Yes |
| Combined Capital Gains Tax Rate | 3.07% | 6.6% (differs) | 11.7% (differs) | 10.75% (differs) | 12.838% (differs) | 3.125% (differs) | 4.58% (differs) |
| Tax Brackets Indexed for Inflation | Yes | No (differs) | No (differs) | No (differs) | No (differs) | No (differs) | No (differs) |
| Standard Deduction Indexed for Inflation | Yes | No (differs) | Yes | Yes | No (differs) | Yes | Yes |
| Personal Exemption Indexed for Inflation | Yes | No (differs) | No (differs) | No (differs) | No (differs) | No (differs) | No (differs) |
| Progressivity Ratio | 1.00 | 1.00 | 1.37 (differs) | 1.95 (differs) | 2.02 (differs) | 1.00 | 1.00 |
Individual Income Taxes: Other Individual Base Variables
| Variable | Pennsylvania | Delaware | Maryland | New Jersey | New York | Ohio | West Virginia |
|---|---|---|---|---|---|---|---|
| Federal Income Used as State Tax Base | No | Yes (differs) | Yes (differs) | No | Yes (differs) | Yes (differs) | Yes (differs) |
| Conformity Status | Static (not current) | Rolling (differs) | Rolling (differs) | Static (not current) | Rolling (differs) | Static (current) (differs) | Static (current) (differs) |
| Credits for Taxes Paid to Other States | Yes | Yes | Yes | Yes | Yes | Yes | Yes |
| AMT Levied | No | No | No | No | No | No | No |
| Recognition of S Corporation Status | Yes | Yes | Yes | Yes | Partial (differs) | Yes | Yes |
| Section 179 Expensing Limit | $1,250,000 | $2,560,000 (differs) | $25,000 (differs) | $25,000 (differs) | $2,560,000 (differs) | $446,667 (differs) | $2,560,000 (differs) |
| Tips | Taxable | Taxable | Taxable | Taxable | Exempt (differs) | Taxable | Taxable |
| Overtime | Taxable | Taxable | Taxable | Taxable | Taxable | Taxable | Taxable |
| Filing and Withholding Threshold Index | 0 | 0 | 0 | 0 | 2.333 (differs) | 0.169 (differs) | 5 (differs) |
Individual Income Taxes: Other Individual Income Variables
| Variable | Pennsylvania | Delaware | Maryland | New Jersey | New York | Ohio | West Virginia |
|---|---|---|---|---|---|---|---|
| Income Recapture | No | No | No | No | Yes (differs) | No | No |
Sales Taxes: Sales and Excise Tax Rates
| Variable | Pennsylvania | Delaware | Maryland | New Jersey | New York | Ohio | West Virginia |
|---|---|---|---|---|---|---|---|
| State Sales Tax Rate | 6.00% | n.a. (differs) | 6.00% | 6.63% (differs) | 4.00% (differs) | 5.75% (differs) | 6.00% |
| Average Local Sales Tax Rate | 0.34% | 0.00% (differs) | 0.00% (differs) | -0.02% (differs) | 4.54% (differs) | 1.54% (differs) | 0.60% (differs) |
| Maximum Local Sales Tax Rate | 2.00% | None (differs) | None (differs) | 3.3125% (differs) | 4.875% (differs) | 2.25% (differs) | 1.40% (differs) |
| Gasoline Tax (Cents per Gallon) | 58.70 | 23.00 (differs) | 46.81 (differs) | 49.15 (differs) | 24.18 (differs) | 38.50 (differs) | 35.70 (differs) |
| Diesel Tax (Cents per Gallon) | 74.1 | 22 (differs) | 47.66 (differs) | 56.15 (differs) | 22.38 (differs) | 47 (differs) | 35.7 (differs) |
| Cigarette Tax (Dollars per Pack of 20) | $2.60 | $2.10 (differs) | $5.00 (differs) | $3.00 (differs) | $5.35 (differs) | $1.60 (differs) | $1.20 (differs) |
| Beer Tax (Dollars per Gallon) | $0.08 | $0.263 (differs) | $0.60 (differs) | $0.12 (differs) | $0.14 (differs) | $0.18 (differs) | $0.1774 (differs) |
| Spirits Tax (Dollars per Gallon) | $7.48 | $4.50 (differs) | $5.46 (differs) | $5.50 (differs) | $6.44 (differs) | $12.33 (differs) | $8.98 (differs) |
| Vapor Tax Ratio to Cigarette Tax | 104.6667% | 5.00% (differs) | 214.305% (differs) | 30.00% (differs) | 71.435% (differs) | 10.00% (differs) | 7.50% (differs) |
Sales Taxes: Business-to-Business Exemptions
| Variable | Pennsylvania | Delaware | Maryland | New Jersey | New York | Ohio | West Virginia |
|---|---|---|---|---|---|---|---|
| Business Inputs | Some Taxable | n.a. (differs) | Some Taxable | Some Taxable | Some Taxable | Some Taxable | Some Taxable |
| Farm Equipment | Exempt | n.a. (differs) | Exempt | Exempt | Exempt | Exempt | Exempt |
| Office Equipment | Taxable | n.a. (differs) | Taxable | Taxable | Taxable | Taxable | Taxable |
| Manufacturing Machinery | Exempt | n.a. (differs) | Exempt | Exempt | Exempt | Exempt | Exempt |
| Manufacturing Raw Materials | Exempt | n.a. (differs) | Exempt | Exempt | Exempt | Exempt | Exempt |
| Business Fuel and Utilities | Exempt | n.a. (differs) | Exempt | Taxable (differs) | Exempt | Exempt | Taxable (differs) |
| Business Leases and Rentals | Taxable | n.a. (differs) | Taxable | Taxable | Taxable | Taxable | Taxable |
| Information Services | Exempt | n.a. (differs) | Taxable (differs) | Taxable (differs) | Taxable (differs) | Taxable (differs) | Taxable (differs) |
| Software as a Service (SaaS) | Taxable | n.a. (differs) | Partial (differs) | Exempt (differs) | Taxable | Taxable | Taxable |
| Platform as a Service (PaaS) | Taxable | n.a. (differs) | Partial (differs) | Exempt (differs) | Taxable | Taxable | Taxable |
| Digital B2B Products | Exempt | n.a. (differs) | Taxable (differs) | Exempt | Exempt | Taxable (differs) | Taxable (differs) |
| Payroll Services | Exempt | n.a. (differs) | Exempt | Exempt | Exempt | Taxable (differs) | Exempt |
| Data Center Purchases | Exempt | n.a. (differs) | Exempt | Taxable (differs) | Exempt | Taxable (differs) | Exempt |
| Digital Advertising Tax | No | No | Yes (differs) | No | No | No | No |
Sales Taxes: Consumer Goods and Services in the Base
| Variable | Pennsylvania | Delaware | Maryland | New Jersey | New York | Ohio | West Virginia |
|---|---|---|---|---|---|---|---|
| Groceries | Exempt | n.a. (differs) | Exempt | Exempt | Exempt | Exempt | Exempt |
| Clothing | Exempt | n.a. (differs) | Taxable (differs) | Exempt | Exempt | Taxable (differs) | Taxable (differs) |
| Prescription Medication | Exempt | n.a. (differs) | Exempt | Exempt | Exempt | Exempt | Exempt |
| Nonprescription Medication | Exempt | n.a. (differs) | Exempt | Exempt | Exempt | Taxable (differs) | Taxable (differs) |
| Gasoline | Exempt | n.a. (differs) | Exempt | Exempt | Taxable (differs) | Exempt | Exempt |
| Landscaping | Taxable | n.a. (differs) | Exempt (differs) | Taxable | Taxable | Taxable | Taxable |
| Repair Services | Taxable | n.a. (differs) | Exempt (differs) | Taxable | Taxable | Taxable | Taxable |
| Real Estate Services | Exempt | n.a. (differs) | Exempt | Exempt | Exempt | Exempt | Exempt |
| Parking | Exempt | n.a. (differs) | Exempt | Taxable (differs) | Taxable (differs) | Exempt | Taxable (differs) |
| Dry Cleaning | Exempt | n.a. (differs) | Exempt | Exempt | Exempt | Taxable (differs) | Taxable (differs) |
| Fitness Services | Exempt | n.a. (differs) | Exempt | Taxable (differs) | Exempt | Taxable (differs) | Exempt |
| Barber Services | Exempt | n.a. (differs) | Exempt | Exempt | Exempt | Exempt | Exempt |
| Veterinary Services | Exempt | n.a. (differs) | Exempt | Exempt | Exempt | Exempt | Exempt |
| E-Books | Taxable | n.a. (differs) | Taxable | Taxable | Exempt (differs) | Taxable | Exempt (differs) |
| Streaming Video | Taxable | n.a. (differs) | Taxable | Taxable | Exempt (differs) | Taxable | Exempt (differs) |
| Medical Services | Exempt | n.a. (differs) | Exempt | Exempt | Exempt | Exempt | Exempt |
| Legal Services | Exempt | n.a. (differs) | Exempt | Exempt | Exempt | Exempt | Exempt |
| Financial Services | Exempt | n.a. (differs) | Exempt | Exempt | Exempt | Exempt | Exempt |
| Accounting Services | Exempt | n.a. (differs) | Exempt | Exempt | Exempt | Exempt | Exempt |
| Sales Tax Holiday | No | n.a. (differs) | Yes (differs) | No | No | Yes (differs) | Yes (differs) |
Sales Taxes: Sales Tax Structure
| Variable | Pennsylvania | Delaware | Maryland | New Jersey | New York | Ohio | West Virginia |
|---|---|---|---|---|---|---|---|
| Uniform Base Definitions | Yes | n.a. (differs) | Yes | Yes | Yes | Yes | Yes |
| Unified Tax Administration | Yes | n.a. (differs) | Yes | Yes | Yes | Yes | Yes |
| Safe Harbor for Remote Sellers | Gross Sales Threshold | n.a. (differs) | Sales or Transactions Threshold (differs) | Sales or Transactions Threshold (differs) | Gross Sales Threshold | Sales or Transactions Threshold (differs) | Sales or Transactions Threshold (differs) |
Property Taxes: Property and Capital Stock Tax Rates
| Variable | Pennsylvania | Delaware | Maryland | New Jersey | New York | Ohio | West Virginia |
|---|---|---|---|---|---|---|---|
| Property Tax Collections per Capita | $1,806 | $1,086 (differs) | $1,982 (differs) | $3,665 (differs) | $3,538 (differs) | $1,688 (differs) | $1,258 (differs) |
| Property Tax as a Percentage of Personal Income | 2.55% | 1.59% (differs) | 2.49% (differs) | 4.32% (differs) | 4.16% (differs) | 2.61% (differs) | 2.27% (differs) |
| Assessment Limit | No | No | Yes (differs) | No | Yes (differs) | No | No |
| Levy Limit | No | Yes (differs) | No | Yes (differs) | Yes (differs) | Yes (differs) | Yes (differs) |
| Capital Stock Tax Rate | None | 0.04% (differs) | None | None | 0.1875% (differs) | None | None |
| Capital Stock Tax Maximum Payment | n.a. | $200,000 (differs) | n.a. | n.a. | $5,000,000 (differs) | n.a. | n.a. |
| Payment Options for Capital Stock and Corporate Income Taxes | n.a. | Pay both (differs) | n.a. | n.a. | Pay highest (differs) | n.a. | n.a. |
Property Taxes: Property Tax Bases
| Variable | Pennsylvania | Delaware | Maryland | New Jersey | New York | Ohio | West Virginia |
|---|---|---|---|---|---|---|---|
| Tangible Personal Property Tax | No | No | Yes (differs) | Partial (differs) | No | No | Yes (differs) |
| Tangible Personal Property De Minimis Exemption | n.a. | n.a. | $20,000 (differs) | n.a. | n.a. | n.a. | None (differs) |
| Intangible Property Tax | No | No | No | No | No | No | No |
| Inventory Tax | No | No | Partial (differs) | No | No | No | Yes (differs) |
| Real Estate Transfer Tax | Yes | Yes | Yes | Yes | Yes | Yes | Yes |
| Split Roll | No | Yes (differs) | No | No | Yes (differs) | No | Yes (differs) |
| Split Roll Ratio | 1.00 | 1.51 (differs) | 1.00 | 1.00 | 7.50 (differs) | 1.00 | 4.00 (differs) |
| Estate Tax | No | No | 16% (differs) | No | 16% (differs) | No | No |
| Inheritance Tax | 15% | No (differs) | 10% (differs) | 16% (differs) | No (differs) | No (differs) | No (differs) |
| Gift Tax | No | No | No | No | No | No | No |
Unemployment Insurance Taxes: UI Tax Rates
| Variable | Pennsylvania | Delaware | Maryland | New Jersey | New York | Ohio | West Virginia |
|---|---|---|---|---|---|---|---|
| Minimum Rate | 1.42% | 0.40% (differs) | 0.31% (differs) | 0.50% (differs) | 2.03% (differs) | 0.55% (differs) | 1.50% (differs) |
| Maximum Rate | 10.37% | 5.40% (differs) | 7.50% (differs) | 5.80% (differs) | 9.83% (differs) | 10.25% (differs) | 8.50% (differs) |
| Taxable Wage Base | $10,000 | $14,500 (differs) | $8,500 (differs) | $44,800 (differs) | $17,600 (differs) | $9,000 (differs) | $9,500 (differs) |
| Most Favorable Schedule: Minimum Rate | 0.00% | 0.10% (differs) | 0.30% (differs) | 0.30% (differs) | 0.00% | 0.00% | 0.00% |
| Most Favorable Schedule: Maximum Rate | 8.95% | 8.00% (differs) | 7.50% (differs) | 5.40% (differs) | 5.90% (differs) | 6.30% (differs) | 7.50% (differs) |
| Least Favorable Schedule: Minimum Rate | 0.00% | 0.10% (differs) | 2.20% (differs) | 1.30% (differs) | 1.50% (differs) | 0.30% (differs) | 1.50% (differs) |
| Least Favorable Schedule: Maximum Rate | 8.95% | 8.00% (differs) | 13.50% (differs) | 7.70% (differs) | 8.90% (differs) | 6.70% (differs) | 7.50% (differs) |
| Employer Contributions as a Share of Total Wages | 0.58% | 0.11% (differs) | 0.18% (differs) | 1.00% (differs) | 0.48% (differs) | 0.42% (differs) | 0.51% (differs) |
| Employer Contributions as a Share of Taxable Wages | 3.40% | 0.60% (differs) | 1.33% (differs) | 2.24% (differs) | 3.08% (differs) | 2.44% (differs) | 2.40% (differs) |
| Trust Fund Solvency Ratio | 0.22 | 0.79 (differs) | 1.04 (differs) | 0.4 (differs) | 0.06 (differs) | 0.43 (differs) | 0.81 (differs) |
| New Employer Rate | 3.82% | 1.20% (differs) | 1.00% (differs) | 3.40% (differs) | 3.40% (differs) | 2.70% (differs) | 2.70% (differs) |
Unemployment Insurance Taxes: Experience Formulas and Charging Methods
| Variable | Pennsylvania | Delaware | Maryland | New Jersey | New York | Ohio | West Virginia |
|---|---|---|---|---|---|---|---|
| Experience Formula Based On | Benefits Ratio | Benefit Wage Ratio (differs) | Benefits Ratio | Reserve Ratio (differs) | Reserve Ratio (differs) | Reserve Ratio (differs) | Reserve Ratio (differs) |
| Benefits Charged in Proportion to Base-Period Wages | Yes | Yes | Yes | Yes | Yes | Yes | Yes |
| Charged If Employee's Benefit Award Is Reversed | No | No | No | No | No | No | No |
| Charged for Reimbursements on Combined Wage Claims | No | No | Yes (differs) | Yes (differs) | Yes (differs) | No | Yes (differs) |
| Charged If Employee Left Voluntarily | No | No | No | No | No | No | No |
| Charged If Employee Was Discharged for Misconduct | No | No | No | No | No | No | No |
| Charged If Employee Refused Suitable Work | Yes | No (differs) | Yes | No (differs) | Yes | No (differs) | Yes |
| Charged If Employee Continues to Work Part-Time | No | No | No | Yes (differs) | No | No | No |
Unemployment Insurance Taxes: Other UI Base Variables
| Variable | Pennsylvania | Delaware | Maryland | New Jersey | New York | Ohio | West Virginia |
|---|---|---|---|---|---|---|---|
| Solvency Tax | Yes | Yes | No (differs) | Yes | Yes | Yes | No (differs) |
| Taxes for Socialized Costs or Negative Balance Employers | No | No | No | No | No | Yes (differs) | Yes (differs) |
| Loan and Interest Repayment Surtaxes | Yes | Yes | No (differs) | Yes | Yes | No (differs) | Yes |
| Reserve Taxes | No | No | No | No | No | No | No |
| Surtaxes for UI Administration or Non-UI Purposes | No | Yes (differs) | Yes (differs) | Yes (differs) | Yes (differs) | Yes (differs) | No |
| Temporary Disability Insurance | No | No | No | Yes (differs) | Yes (differs) | No | No |
| Voluntary Contributions | Yes | No (differs) | No (differs) | Yes | Yes | Yes | Yes |
| Years to Qualify for Experience Rating | 1.5 | 2 (differs) | 2 (differs) | 3 (differs) | 1.5 | 1.5 | 3 (differs) |
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About the Authors
Janelle Fritts is a Senior Policy Analyst with the Tax Foundation’s Center for State Tax Policy. She is the lead researcher on the annual State Tax Competitiveness Index and serves as a resource to policymakers in their efforts to modernize and improve the structures of their state tax codes. Her work has been cited in The New York Times, the Associated Press, Bloomberg, and numerous state media outlets across the country.
Jared Walczak is a Senior Fellow at the Tax Foundation, where he spent five years as Vice President of State Projects, and president of Walczak Policy Consulting.
Nicole Fox is a Policy Analyst with the Center for State Tax Policy at the Tax Foundation, where she serves as a resource to policymakers in their efforts to modernize and improve the structure of their state tax codes.
Katherine Loughead is the Vice President of State Tax Policy at the Tax Foundation, where she oversees the state tax policy team’s research agenda and serves as a resource to policymakers in their efforts to modernize and improve the structure of their state tax codes.
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