Sales Tax
- Statewide: 6.0%
- Counties can levy an additional sales tax of no more than 2.0%
- Current average sales tax: 6.166%
- 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)
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 ($15,000 for renters). 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.
- Public school districts can offer tax credits to seniors to volunteer in schools.
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. A 5% discount is allowed if estate tax is paid within three months of decedent's death. Farmland is not taxed. There is no estate tax.
Department of Revenue website: www.revenue.pa.gov
