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 9.99 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 29th overall on our 2022 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. 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?


Related Articles

Even in the World of Tax Policy, There’s Something to Be Thankful For

November 26, 2008

Giving Thanks: Best of the Blogosphere from the Garden State, the Sunshine State and the Keystone State

November 25, 2008

Pittsburgh’s Battle of the Drink Tax Rages On

November 11, 2008

Who Should Fund Pennsylvania’s Roads?

August 14, 2008

Thursday Video: Pittsburgh Drink Tax Song

August 7, 2008

Coupons Shouldn’t Be Taxed, but Government Vouchers Should

July 9, 2008

Pittsburgh Car Rental Tax Harming Car Sharing Services

March 5, 2008

Pennsylvania Governor’s Borrowing Proposals Short-Sighted (Testimony Before the Pennsylvania House Republican Policy Committee)

February 27, 2008

Politician’s House Keeps Low Assessment; PA Board Claims It Lost File

February 6, 2008

Pennsylvania State Senator Seeks Porn Tax

January 7, 2008

Attention Pittsburgh Party-Goers: Buy Your Drinks Before Midnight

December 31, 2007

Pennsylvania Woman Wins Toilet Paper Tax Lawsuit

December 3, 2007

Pennsylvania Woman Sues K-Mart Over 28 Cent Tax

October 9, 2007

Tax Enforcing Mayor of Philadelphia Owes Back Taxes

September 24, 2007

Pennsylvanians Credit Legislature More than Governor for Preventing Tax Increases

August 30, 2007

Attention Pittsburgh: New Alcohol Tax May Hit Iron City

July 10, 2007

Pennsylvania Judge Strikes Down Property Tax System

June 18, 2007

Pennsylvania Legislators Consider Property Tax Reform Top Priority

March 15, 2007

Oil companies already provide ‘windfall’

March 4, 2007

Significant Tax Increase for Pennsylvania

February 5, 2007