Pennsylvania, renowned for its rich history and diverse landscapes, imposes a state income tax that is crucial to its revenue system. As of 2022-2023, understanding the intricacies of Pennsylvania’s income tax becomes essential for residents and non-residents alike.
In this guide, we’ll delve into the fundamental aspects of Pennsylvania’s state income tax, including its rates, deductions, calculation methods, and residency rules. Additionally, we’ll shed light on common queries regarding tax refunds, sudden increases in tax liabilities, and the impact of sales tax in the Keystone State. Use Beem’s AI-powered software to file your online federal and state tax for any filing or employment status.
Does Pennsylvania Have State Income Tax?
Yes, Pennsylvania imposes a flat 3.07% state income tax on all taxable income, applicable to residents and non-residents. Local income taxes are also collected. The state maintains an 8.99% flat corporate income tax and permits local gross receipts taxes. With a 6.00% state sales tax rate and a maximum local rate of 2.00%, the combined average stands at 6.34%.
Pennsylvania State Income Tax – How much will the income after tax in Pennsylvania with Filing Status
| Annual Income | Filing Status – Single | Filing Status – Married Filing Jointly | Filing Status – Head of Household |
| $12000 | $14,335 | $14,540 | $14,540 |
| $15000 | $14,335 | $14,540 | $14,540 |
| $20000 | $18,681 | $19,386 | $19,326 |
| $22000 | $20,420 | $21,325 | $21,065 |
| $30000 | $27,239 | $28,669 | $28,019 |
| $35000 | $31,485 | $33,016 | $32,347 |
| $36000 | $32,334 | $33,885 | $33,196 |
| $42000 | $37,430 | $39,101 | $38,292 |
| $45000 | $39,978 | $41,709 | $40,840 |
| $48000 | $42,526 | $44,286 | $43,388 |
| $52000 | $45,923 | $47,683 | $46,785 |
| $54000 | $49,193 | 51,080 | $50,182 |
| $60000 | $52,190 | $54,477 | $53,579 |
| $62000 | $53,689 | $56,176 | $55,278 |
| $65000 | $55,937 | $58,724 | $57,826 |
| $70000 | $59,683 | $62,970 | $62,072 |
| $75000 | $63,430 | $67,217 | $63,034 |
| $80000 | $71,463 | $71,463 | $70,095 |
| $85000 | $70,923 | $75,710 | $73,842 |
| $90000 | $74,669 | $79,956 | $77,588 |
| $92000 | $75,107 | $81,655 | $79,087 |
| $95000 | $78,416 | $84,203 | $81,335 |
| $114000 | $92,413 | $99,884 | $95,460 |
| $115000 | $93,142 | $100,634 | $96,190 |
| $140000 | $111,375 | $119,366 | $114,422 |
| $150000 | $118,668 | $126,859 | $121,715 |
| $160000 | $116,989 | $134,352 | $129,008 |
| $165000 | $129,607 | $138,099 | $132,655 |
| $190000 | $147,280 | $156,831 | $150,843 |
| $185000 | $144,033 | $153,085 | $147,241 |
| $260000 | $191,798 | $208,163 | $195,554 |
| $300000 | $216,570 | $237,335 | $220,326 |
| $350000 | $247,535 | $273,800 | $231,298 |
| $120000 | $96,789 | $104,380 | $99,836 |
| $135000 | $107,728 | $115,620 | $110,776 |
| $170000 | $133,254 | $141,845 | $136,301 |
| $180000 | $140,547 | $149,338 | $143,594 |
| $250000 | $185,605 | $200,870 | $189,361 |
| $28000 | $25,540 | $26,930 | $26,280 |
| $32000 | $28,937 | $30,408 | $29,758 |
| $40000 | $35,732 | $37,362 | $36,593 |
| $44000 | $39,129 | $40,839 | $39,990 |
| $53000 | $46,773 | $48,532 | $47,634 |
| $56000 | $49,193 | $51,080 | $50,182 |
| $58000 | $50,692 | $52,779 | $51,881 |
Pennsylvania State Income Tax Rates and Tax Brackets
Pennsylvania’s state income tax system follows a progressive structure, ranging from 10% to 37% for various income brackets. Single filers face a 10% rate for incomes up to $10,275, with subsequent brackets at 12%, 22%, 24%, 32%, 35%, and 37%. Married filers experience similar rates across different income thresholds. Notably, the 2022 standard deductions vary for different filing categories. In addition to the state income tax, Pennsylvania’s unemployment tax presents an employee rate increase to 0.07% in 2023, while the wage tax in the City of Philadelphia has separate rates for residents and non-residents, subject to annual adjustments.
| Tax Bracket | Filing Status | Income Range | Tax Rate |
| 10% | Single | Up to $10,275 | 10% |
| Married Filing Jointly | Up to $20,550 | 10% | |
| Married Filing Separately | Up to $10,275 | 10% | |
| Head of Household | Up to $14,650 | 10% | |
| 12% | Single | $10,276 – $41,775 | 12% |
| Married Filing Jointly | $20,551 – $83,550 | 12% | |
| Married Filing Separately | $10,276 – $41,775 | 12% | |
| Head of Household | $14,651 – $55,900 | 12% | |
| 22% | Single | $41,776 – $89,075 | 22% |
| Married Filing Jointly | $83,551 – $178,150 | 22% | |
| Married Filing Separately | $41,776 – $89,075 | 22% | |
| Head of Household | $55,901 – $89,050 | 22% | |
| 24% | Single | $89,076 – $170,050 | 24% |
| Married Filing Jointly | $178,151- $340,100 | 24% | |
| Married Filing Separately | $89,076 – $170,050 | 24% | |
| Head of Household | $89,051 – $170,050 | 24% | |
| 32% | Single | $170,051 – $215,950 | 32% |
| Married Filing Jointly | $340,101 – $431,900 | 32% | |
| Married Filing Separately | $170,051 – $215,950 | 32% | |
| Head of Household | $170,051 – $215,950 | 32% | |
| 35% | Single | $215,951 – $539,900 | 35% |
| Married Filing Jointly | $431,901 – $647,850 | 35% | |
| Married Filing Separately | $215,951 – $323,925 | 35% | |
| Head of Household | $215,951 – $539,900 | 35% | |
| 37% | Single | Over $539,900 | 37% |
| Married Filing Jointly | Over $647,850 | 37% | |
| Married Filing Separately | Over $323,925 | 37% | |
| Head of Household | Over $539,900 | 37% |
What is Pennsylvania’s Standard Deduction?
Pennsylvania’s income tax does not offer a standard deduction or personal exemption. However, individuals can still reduce their tax liabilities through various deductions, credits, and exclusions. Specifically, the state allows for the following:
Deductions
- Taxpayers can decrease taxable income by claiming allowable unreimbursed expenses directly related to their occupation or employment, provided these expenses are ordinary, actual, reasonable, and necessary.
- Three specific deductions are permitted against income, including deductions for contributions to medical savings accounts, health savings accounts, and IRC Section 529 tuition account programs.
Credits
- Pennsylvania residents can receive a credit against their state income tax for gross or net income taxes paid to other states.
- Lower-income families and individuals receiving Tax Forgiveness can also avail themselves of credit to reduce their tax burden.
- Tax credit programs are available to qualified applicants, reducing their income tax liabilities.
Also know about: What is Adjusted Gross Income?
How to Calculate Pennsylvania State Income Tax
Calculating Pennsylvania state income tax involves a straightforward process, mainly due to the state’s flat income tax rate of 3.07 percent. To determine your Pennsylvania state income tax, follow these steps:
Determine Taxable Income: Begin by calculating your total taxable income, which includes wages, salaries, tips, interest, dividends, and other sources of income subject to taxation in Pennsylvania.
Apply the Flat Tax Rate: Multiply your taxable income by the current flat tax rate of 3.07 percent. This step yields your initial Pennsylvania state income tax liability.
Account for Tax Deductions and Credits: Reduce your calculated tax liability by any eligible deductions or credits you qualify for, as specified by Pennsylvania’s tax laws. These deductions or credits may pertain to specific expenses, investments, or circumstances that warrant a reduction in your overall tax burden.
Determine Final Tax Liability: After accounting for deductions and credits, subtract the resulting amount from the initial tax liability calculated in step 2. This yields your final Pennsylvania state income tax liability.
Consider Additional Taxes or Levies: Be aware of any local income taxes that may apply in your jurisdiction, as some areas within Pennsylvania collect local income taxes, which can impact your overall tax obligation.
File Your State Income Tax Return: Report your final Pennsylvania state income tax liability when filing your state income tax return, ensuring accurate documentation and compliance with the state’s tax regulations.
Also Read: Florida State Income Tax
Do I Have to Pay Pennsylvania State Income Tax?
Yes, you must pay Pennsylvania state income tax under the following circumstances:
Residency Status: All residents, whether full-year or part-year, must pay Pennsylvania state income tax on their income, regardless of the source.
Non-resident Income: Non-residents earning income within the state’s boundaries are subject to Pennsylvania state income tax on the portion of their income generated within the state.
Minimum Income Threshold: The requirement to file a Pennsylvania Income Tax Return (PA-40) applies to all individuals who earn $1 or more in taxable income, even if no tax is due.
Withheld Tax: Employees receiving compensation with tax withheld must file a tax return, even if they do not owe any further tax. This step ensures compliance with Pennsylvania’s tax regulations.
Verification Purposes: Filing a return aids in determining eligibility for special tax forgiveness (SP) and facilitates the commonwealth in various ways, such as accurate school funding, local tax collection enforcement, and income verification for specific assistance programs.
Also Read: Ohio State Income Tax
How to Pay Pennsylvania State Income Tax?
Paying Pennsylvania state income tax is a straightforward process that can be accomplished through various convenient methods. Follow these steps to ensure timely and accurate payment:
Online Payment: Access the Pennsylvania Department of Revenue’s website and utilize the online payment system. Provide the necessary information and follow the prompts to complete the transaction securely.
Electronic Funds Withdrawal: Initiate an electronic funds withdrawal directly from your bank account by providing the required banking information and authorization through the state’s online payment portal.
Credit or Debit Card Payment: Utilize a credit or debit card to pay your Pennsylvania state income tax. Choose this option on the Department of Revenue’s website and follow the instructions for secure processing.
Check or Money Order Submission: Prepare a check or money order payable to the “Pennsylvania Department of Revenue” and include your tax payment voucher or a note with your Social Security number. Mail the payment to the designated address mentioned on the official tax forms or the Department of Revenue’s website.
Establish a Payment Plan: Contact the Collection Unit or the Revenue district offices to set up suitable payment arrangements if you cannot simultaneously pay your total Pennsylvania state income tax liability.
Am I a Resident for Pennsylvania Income Tax Purposes?
Specific guidelines, including domicile, statutory residency, and various contributing factors, determine Pennsylvania’s income tax considerations for residents. Understanding these criteria is crucial for determining an individual’s tax residency status in the state.
Resident Status Rules
- Domicile Basis: Pennsylvania considers individuals with a domicile within the state as residents for income tax purposes.
- Statutory Residency: Individuals with a permanent place of abode in Pennsylvania who spend over 183 days in the state are classified as statutory residents.
- Factors for Domicile: Various factors, including physical presence, intention, and connections, contribute to establishing a domicile.
- Permanent Place of Abode: Criteria defining a permanent place of abode are essential in determining resident status.
- Impact on Tax Obligations: Residents are liable for taxes on all income, both in-state and out-of-state, with provisions for tax credits in certain situations.
Part-Year Resident Status Rules
- Domicile Transition: Part-year residents experience changes in their domicile during the taxable year.
- Residency Duration: A part-year resident is classified as a resident for a portion of the tax year and a non-resident for another period.
- Tax Obligations: Part-year residents are subject to tax liabilities based on their residency status for each applicable period.
- Interstate Factors: Residency shifts often involve considerations of physical presence and connections in multiple states.
Non-resident Status Rules
Non-residents, typically domiciled outside of Pennsylvania, are subject to state income tax only on income derived from sources within the state, with no provision for certain tax credits available to residents.
Also Read: Texas State Income Tax
Where is My Pennsylvania State Income Tax Refund
To check the status of your Pennsylvania state income tax refund, follow these steps:
Access the Online Portal: Visit the official IRS website to check your refund status.
Enter Required Information: Provide your Social Security number and the exact amount of your expected refund as prompted on the website.
Check Regularly: Your refund status is updated daily, so make it a habit to check the portal regularly for any updates or changes.
Contact Customer Service: If you encounter any issues or have inquiries about your refund, contact the state’s Customer Experience Center at 1-717-787-8201 between 7:30 a.m. and 5:00 p.m. (EST).
Expect Processing Time: Be aware that processing time varies depending on the method of filing. Electronic filers typically wait around four weeks for their refunds, while those who file paper returns may wait eight to 10 weeks for the mailing date for processing and posting.
Why Did My Pennsylvania State Income Tax Increase?
Here are the key points contributing to the potential increase in your Pennsylvania state income tax:
- Implementation of new tax legislation, such as HB 1342, resulting in changes to tax rates, deductions, and credits.
- Phased corporate net income tax rates reduction over the upcoming years, impacting the overall state revenue and potentially necessitating adjustments in individual income tax rates.
- Shift from the cost of a performance standard to market sourcing rules for intangible income, affecting the tax assessment of specific business activities.
- Introduction of the economic nexus rule, broadening the scope of businesses subject to Pennsylvania taxation, potentially influencing the overall tax revenue and distribution.
- Modifications in various tax credit programs, including the Dependent and Child Care Enhancement Program and the Research and Development Tax Credit, prompted adjustments in overall tax rates and policies for taxpayers.
Pennsylvania Sales Tax
In Pennsylvania, the statewide base sales tax rate stands at 6%, although there are exceptions in certain regions. Allegheny County imposes an additional 1% sales tax, while Philadelphia has a local surcharge, resulting in a total sales tax rate of 8% in the city. Exclusions from sales taxes are prevalent, encompassing various essentials such as clothing, footwear, textbooks, groceries, internet service, toilet paper, fitness club fees, medicine, and residential fuels like firewood, natural gas, and electricity.
- Statewide base sales tax rate: 6%
- Additional sales tax in Allegheny County: 1%
- Local surcharge in Philadelphia: 2% (total sales tax rate: 8%)
Check out Beem to file both federal and state taxes online and get the maximum refund.
5 Things to Know About Pennsylvania Income Tax
Here are five key points to know about Pennsylvania income tax:
- Pennsylvania implements a flat 3.07% individual income tax rate.
- Local income taxes are collected in various jurisdictions within the state.
- The corporate income tax rate is a flat 8.99% with provisions for local gross receipts taxes.
- Pennsylvania has a sales tax rate of 6%, with exceptions in Allegheny County and Philadelphia.
- The state offers various tax credits and deductions for research and development, education, and childcare.
Frequently Asked Questions
Q. Is Pennsylvania a high-tax state?
Pennsylvania’s tax rates are generally moderate compared to some other states.
Q. Is Pennsylvania a tax-friendly state?
Pennsylvania is not considered one of the most tax-friendly states but it has certain tax benefits for retirees.
Q. Is Pennsylvania a good place to live for taxes?
Pennsylvania offers a mixed tax environment with benefits for retirees and various tax deductions.
Q. How much of my paycheck goes to taxes in Pennsylvania?
The percentage of your paycheck that goes to taxes in Pennsylvania depends on your income and filing status.
Q. Does Pennsylvania tax income earned in another state?
Pennsylvania taxes residents on income earned both within and outside the state.
Q. Does the state of Pennsylvania tax social security income?
Pennsylvania does not tax social security benefits.
Q. Can Pennsylvania state income tax go up?
Pennsylvania’s state income tax rates can change based on legislative decisions.
Q. Do seniors have to pay state income tax in Pennsylvania?
Seniors in Pennsylvania may have to pay state income tax, depending on their income level.
Q. Does Pennsylvania have a state income tax for the military?
Pennsylvania provides some tax benefits for military personnel.
Q. What are Pennsylvania state income taxes for LLC?
LLCs in Pennsylvania are subject to the state’s flat corporate income tax rate of 8.99%.
