Taxes in Pennsylvania

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 rank? Below, we have highlighted a number of tax rates, ranks, and measures detailing Pennsylvania ’s income tax, business tax, sales tax, and property tax systems. Click the tabs below to explore!

Individual Taxes Business Taxes Sales Taxes Property Taxes

Top Individual Income Tax Rate

3.07%

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State and Local Individual Income Tax Collections per Capita

$1276

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State and Local Tax Burden

10.2%

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Tax Freedom Day

April 23

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Top Corporate Income Tax Rate

9.99%

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State Business Tax Climate Index Ranking

26

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State Sales Tax Rate

6.00%

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Average Local Sales Tax Rate

0.34%

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Combined State and Average Local Sales Tax Rate

6.34%

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State and Local General Sales Tax Collections per Capita

$838

State Gasoline Tax Rate (cents per gallon)

58.7¢

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State Cigarette Tax Rate (dollars per 20-pack)

$2.60

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Property Taxes Paid as a Percentage of Owner-Occupied Housing Value

1.48%

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State and Local Property Tax Collections Per Capita

$1481

Soda Tax Experiment Failing in Philadelphia Amid Consumer Angst and Revenue Shortfalls

August 3, 2017

Sports Drinks Are Now More Expensive than Beer Thanks to the Philadelphia Soda Tax

January 4, 2017

Pennsylvania Illustrated: A Visual Guide to Taxes & The Economy

May 16, 2016

Philadelphia Mayor Proposes Gigantic Soda Tax

March 2, 2016

How an Unexpected Revenue Ruling Penalizes Capital Investment in Pennsylvania, and How Lawmakers Can Fix It

March 19, 2018

Pennsylvania’s New Penalties on Investment Could Scare off Amazon, Others

February 2, 2018

Op-ed: Is the Soda Tax Bubble Bursting?

October 16, 2017

Is the State and Local Tax Deduction in Place to Protect Against Double Taxation?

September 21, 2017

Soda Tax Experiment Failing in Philadelphia Amid Consumer Angst and Revenue Shortfalls

August 3, 2017

Ten States Begin FY2018 Without Budget In Place

July 3, 2017

A Flawed Property Tax Swap in Pennsylvania

January 30, 2017

Sports Drinks Are Now More Expensive than Beer Thanks to the Philadelphia Soda Tax

January 4, 2017

Lunch Links: OECD Raises U.S. Growth Projections Based on Trump’s Economic Plans; Compromise Support for D.C. Payroll Tax for Paid Leave; N.J. Gov. Christie Reverses Stance on Tax Reciprocity Pact

November 29, 2016

Lunch Links: Not So Sweet Soda Taxes Have Multi-City Appeal; Trump Includes Tax Reform in Efforts to Keep Carrier from Bolting; Christie Cites ‘Blood Money’ Tax Revenue in Shunning Marijuana Legalization for N.J.

November 28, 2016

Lunch Links: Handy Tax Calculator Before Casting Your Presidential Ballot; New York, not Nevada, Could Haul in Biggest Casino Taxes; EU Nations Debate Tax Haven Definition

November 7, 2016

Lunch Links: Raising Gas Taxes A ‘Non-Issue’ for Incumbents in Iowa Legislative Races; High-Income Earner Taxes on Ballot in California and Maine; Corporate Tax Breaks for Housing, Development Projects Cost NYC $3 Billion

November 3, 2016

Lunch Links: Social Security Tax Cap Raised; Liquor Prices in Pennsylvania Could Soar from Tax Change; Gary Johnson Tax Plan Still Lacking Details; Follow TF for Live Debate Coverage

October 19, 2016

Lunch Links: Bernie Sanders on the Campaign Stump for Health Care Initiative (and Tax) in Colorado; Nevada Gov. Signs Bills for Hotel and Sales Tax Increases to Fund NFL-Ready Stadium; Legality and Tax of Recreational Marijuana Examined in Michigan

October 17, 2016

Lunch Links: Repeal of Vapor Tax Passed by Pennsylvania House Committee; Oklahomans to Vote on Sales Tax Increase to Fund Education; Fitch Lowers West Virginia Ranking on ‘Weak’ Demographics and Drop in Coal/Natural Gas Demand

September 29, 2016

2017 State Business Tax Climate Index Released Today!

September 28, 2016

Lunch Links: Speaker Ryan Lays Out Vision for Tax Reform; Compromise Part of Latest New Jersey Tax Proposal; Pennsylvania Legislators Target Reduction of 40 Percent E-Cigarette Tax; Rundown of Marijuana Ballot Propositions in Five States

September 21, 2016

Lunch Links: Beverage Industry Sues to Prevent Soda Tax in Philly; Chicago City Council Imposes Hefty Water/Sewer Tax to Aid Unfunded Pension Liability; TF Models Effects of Past Tax Legislation

September 15, 2016

Lunch Links: Republican VP Candidate Pence Releases Tax Returns; Germany’s Finance Minister Calls for European Tax Cuts; Philadelphia Downgraded by Moody’s for Perilously Low Cash Fund Balances

September 12, 2016

Lunch Links: Under Amour Wants Baltimore to Finance Transformation of Area to House New Headquarters; Wisconsin Governor, Fellow Republicans in Legislature Announce Tax Reform Proposals; New Tax Foundation Tool to Compare Congressional Tax Plans

September 7, 2016

Individual and Consumption Taxes

Business Taxes

Taxes and the Economy

Major Publications

Personal and Sales Taxes

Business Taxes

Excise Taxes

Major Publications

Taxes in Pennsylvania

3.07%

$1276

10.2%

April 23

9.99%

26

6.00%

0.34%

6.34%

$838

58.7¢

$2.60

1.48%

$1481

Featured Articles

Soda Tax Experiment Failing in Philadelphia Amid Consumer Angst and Revenue Shortfalls

Sports Drinks Are Now More Expensive than Beer Thanks to the Philadelphia Soda Tax

Pennsylvania Illustrated: A Visual Guide to Taxes & The Economy

Philadelphia Mayor Proposes Gigantic Soda Tax

Related Articles

How an Unexpected Revenue Ruling Penalizes Capital Investment in Pennsylvania, and How Lawmakers Can Fix It

Pennsylvania’s New Penalties on Investment Could Scare off Amazon, Others

Op-ed: Is the Soda Tax Bubble Bursting?

Is the State and Local Tax Deduction in Place to Protect Against Double Taxation?

Soda Tax Experiment Failing in Philadelphia Amid Consumer Angst and Revenue Shortfalls

Ten States Begin FY2018 Without Budget In Place

A Flawed Property Tax Swap in Pennsylvania

Sports Drinks Are Now More Expensive than Beer Thanks to the Philadelphia Soda Tax

Lunch Links: OECD Raises U.S. Growth Projections Based on Trump’s Economic Plans; Compromise Support for D.C. Payroll Tax for Paid Leave; N.J. Gov. Christie Reverses Stance on Tax Reciprocity Pact

Lunch Links: Not So Sweet Soda Taxes Have Multi-City Appeal; Trump Includes Tax Reform in Efforts to Keep Carrier from Bolting; Christie Cites ‘Blood Money’ Tax Revenue in Shunning Marijuana Legalization for N.J.

Lunch Links: Handy Tax Calculator Before Casting Your Presidential Ballot; New York, not Nevada, Could Haul in Biggest Casino Taxes; EU Nations Debate Tax Haven Definition

Lunch Links: Raising Gas Taxes A ‘Non-Issue’ for Incumbents in Iowa Legislative Races; High-Income Earner Taxes on Ballot in California and Maine; Corporate Tax Breaks for Housing, Development Projects Cost NYC $3 Billion

Lunch Links: Social Security Tax Cap Raised; Liquor Prices in Pennsylvania Could Soar from Tax Change; Gary Johnson Tax Plan Still Lacking Details; Follow TF for Live Debate Coverage

Lunch Links: Bernie Sanders on the Campaign Stump for Health Care Initiative (and Tax) in Colorado; Nevada Gov. Signs Bills for Hotel and Sales Tax Increases to Fund NFL-Ready Stadium; Legality and Tax of Recreational Marijuana Examined in Michigan

Lunch Links: Repeal of Vapor Tax Passed by Pennsylvania House Committee; Oklahomans to Vote on Sales Tax Increase to Fund Education; Fitch Lowers West Virginia Ranking on ‘Weak’ Demographics and Drop in Coal/Natural Gas Demand

2017 State Business Tax Climate Index Released Today!

Lunch Links: Speaker Ryan Lays Out Vision for Tax Reform; Compromise Part of Latest New Jersey Tax Proposal; Pennsylvania Legislators Target Reduction of 40 Percent E-Cigarette Tax; Rundown of Marijuana Ballot Propositions in Five States

Lunch Links: Beverage Industry Sues to Prevent Soda Tax in Philly; Chicago City Council Imposes Hefty Water/Sewer Tax to Aid Unfunded Pension Liability; TF Models Effects of Past Tax Legislation

Lunch Links: Republican VP Candidate Pence Releases Tax Returns; Germany’s Finance Minister Calls for European Tax Cuts; Philadelphia Downgraded by Moody’s for Perilously Low Cash Fund Balances

Lunch Links: Under Amour Wants Baltimore to Finance Transformation of Area to House New Headquarters; Wisconsin Governor, Fellow Republicans in Legislature Announce Tax Reform Proposals; New Tax Foundation Tool to Compare Congressional Tax Plans