Taxes in Pennsylvania

Pennsylvania Tax Rates, Collections, and Burdens

How does Pennsylvania’s tax code compare? Pennsylvania has a flat 3.07 percent individual income tax. There are also jurisdictions that collect local income taxes. Pennsylvania has a flat 8.99 percent corporate income tax rate and permits local gross receipts taxes. Pennsylvania has a 6.00 percent state sales tax rate, a max local sales tax rate of 2.00 percent, and an average combined state and local sales tax rate of 6.34 percent. Pennsylvania’s tax system ranks 33rd overall on our 2023 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: How Does Your State Compare?

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