Pennsylvania

Sales Tax

  • Statewide: 6.0%
  • Counties can levy an additional sales tax of no more than 2.0%
  • Current average sales tax: 6.122%
  • Common Exceptions at State Level:
    • Prescription and Over-the-Counter Medicine: Exempt
    • Unprepared Foods: Exempt
    • Clothing: Exempt
  • Gasoline Tax: 77.10 cents/gallon (Includes all state, local and federal taxes)
  • Diesel Fuel Tax: 99.60 cents/gallon (Includes all state, local and federal taxes)
  • Cigarette Tax: $2.60/pack of 20

 

Personal Income Tax

  • Personal Income Tax Rate: 3.07%
  • Standard deduction: None
  • Personal Exemption Allowance: None. Dependent Exemption: None
  • Itemized Deductions Allowed?: Yes, subject to limitations
  • Retirement Income
    • Social Security: Exempt
    • IRAs: Exempt
    • 401Ks/Defined contribution employer retirement plans: Exempt
    • Private pensions: Exempt
    • Public Pensions: Exempt
  • Military Pay
    • Active Duty Pay: Taxable to the extent included in federal Adjusted Gross Income. National Guard and reservist pay is exempt.
    • Military Retirement Pay: Exempt
    • Military Disability Pay: Exempt
    • VA Dependency & Indemnity Compensation Benefits: Exempt
    • SBP/SSBP/RCSBP/RSFPP: Exempt
  • Income Tax Comments: State allows county- and city-level income tax.

 

Property Tax

  • Local municipalities average 1.58% of the property's assessed value.
  • Calculation of assessed value: Varies by county
  • Relief programs for:
    • Owner-occupied: Available reduction of assessed value
    • 65 and over/Surviving Spouses over 50/Disabled over 18: Rebate of up to $650 if income is less than $35,000. Supplemental rebates can increase rebates to $975. Renters' program available.
    • Disabled Veterans/Surviving Spouse (not remarried): Partial or full credit of tax available subject to income requirements.
  • Personal Property Tax: Yes. Rates and exemptions vary.

 

Inheritance & Estate Taxes: An inheritance tax is based on the relationship of heir to descendant and type of property; for example, spouses are exempt and tax is 4.5% for direct descendants, 12% for other relatives, and 15% for other beneficiaries. Farmland is not taxed. There is no estate tax.

 

Department of Revenue website: www.revenue.pa.gov

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