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?

2017 State Business Tax Climate Index Released Today!

September 28, 2016

Pennsylvania Includes Disappointing E-Cigarette Tax in Revenue Measure

July 14, 2016

Should Philadelphia Soda Drinkers Fund City Services?

June 14, 2016

Some Not-So-Sweet Beverage Tax Proposals in Philadelphia

June 8, 2016

Pennsylvania Illustrated: A Visual Guide to Taxes & The Economy

May 16, 2016

Clinton, Sanders Spar over Soda Taxes

April 23, 2016

Philadelphia Mayor Proposes Gigantic Soda Tax

March 2, 2016

Pennsylvania Gets a Stopgap Budget—Bitterly

December 31, 2015

Features of Pennsylvania’s Tentative Budget Agreement

November 10, 2015

Testimony: Pennsylvania’s Tax Climate

August 20, 2015

Pennsylvania Legislators Pass Budget, Veto Deemed Likely

June 30, 2015

Moral Hazard in Pennsylvania Property Tax Proposals

June 12, 2015

Testimony: Pennsylvania Income and Sales Tax Increases in Context

June 12, 2015

Pennsylvania Senate Considers Hiking Income and Sales Taxes

May 25, 2015

Pennsylvania Governor Proposes Major Tax Overhaul

March 6, 2015

What Pennsylvania Can Do on Tax Reform this Session

February 20, 2015

Taxes in Many States Changing January 1, 2015

December 31, 2014

Governor Corbett Approves $2 Philadelphia School District Cigarette Tax

September 26, 2014

Pennsylvania Considers Taxing Cigarettes to Pay for Property Tax Relief

August 13, 2014

Judge Rejects Philadelphia’s Attempt to Impose Amusement Excise Tax on Exotic Dancers’ Lapdance Earnings

July 18, 2014