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?

Pennsylvania Budget Relies on Patchwork of Revenue Sources

June 30, 2014

Pennsylvania House of Representatives Passes Suspension of Tax Credits

June 26, 2014

Pennsylvania Urged Not to Tax Out-of-State Emergency Responders

March 11, 2014

Pennsylvania Man Protests Property Tax by Paying It in $1 Bills

September 6, 2013

Pennsylvania Tax Bill Hikes Business Taxes by Nearly $60 Million

July 10, 2013

Pennsylvania’s Family Business Death Tax on Life Support

June 27, 2013

Philadelphia Faces Painful Property Tax Transition

April 16, 2013

Five States Win Tax Foundation Tax Information Transparency Honors

April 15, 2013

Governor Corbett’s Tax Reform Proposal (Testimony to Pennsylvania House Finance Committee)

April 11, 2013

Judge Orders Harrisburg to Double Local Income Tax

September 10, 2012

Pennsylvania House Approves Corporate Rate Cuts and Tries to Close the “Delaware Loophole”

May 14, 2012

North Dakota Voters to Decide Abolition of Property Tax

April 16, 2012

Pennsylvania Debates Proposed Natural Gas Impact “Fee”

January 31, 2012

Pennsylvania Legislators Give Family-Owned Farms a Break from the Inheritance Tax

December 16, 2011

The Economic Effects of the Estate Tax (Testimony of David S. Logan before the Pennsylvania House Finance Committee)

October 17, 2011

Bryce Harper Promoted to Double-A Ball in Pennsylvania, Reduces His Income Tax Burden

July 8, 2011

Pennsylvania Governor’s “Liberty Loan Fund” Idea Gets Chilly Reception

May 17, 2011

Are You a Simpleton if You Oppose State-Run Gambling?

January 10, 2011

Pennsylvania Governor Praises Tax Foundation Rank, But Should He?

November 1, 2010

Philadelphia Demands License Fee and Taxes from Bloggers

August 24, 2010