Pennsylvania individual income tax
Pennsylvania enforces an individual income tax on earnings for state residents and nonresidents alike. This tax is derived from the individual's federal-adjusted gross income and maintains a consistent rate of 3.07%.
April 18
Return due in 2023
3.07%
Flat tax rate
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Pay income tax online
Visit the official state government’s website to pay individual income tax online.
Visit PennsylvaniaDOR
What is Pennsylvania income tax?
Individual income tax
Individual income tax is a type of direct tax levied by Pennsylvania on individuals that meet the taxable criteria.
Taxable incomes
Pennsylvania taxes incomes from wages, dividends, interests and capital gains.
Tax brackets
Pennsylvania has a flat rate tax of 3.07%.
Standard deduction
Pennsylvania does not have standard deductions.
Personal exemption
There is no personal exemption in Pennsylvania.
2022 tax rates
The following is the list of income tax rates for the tax year of 2022
| Pennsylvania taxable income | Tax rate |
|---|---|
| Flat tax rate | 3.07% |
Residency
Residency in Pennsylvania refers to an individual's permanent home or place of residence in the state.
Pennsylvania resident
A Pennsylvania resident is someone who is domiciled in Pennsylvania, or who maintains a permanent place of residence in the state.
You are required to pay tax on all the income, regardless of where it's sourced, if you are a resident.
Pennsylvania part-year resident
A Pennsylvania Part-Year Resident is someone who moved into or out of the state during the tax year.
Income earned while the individual was a resident of Pennsylvania is subject to state taxes.
Income earned from Pennsylvania sources are also taxable.
Pennsylvania non-resident
A Pennsylvania Nonresident is someone who does not have a permanent residence in the state.
Nonresidents who receive income from Pennsylvania sources are required to pay Pennsylvania taxes. This includes income from Pennsylvania properties and personal services performed in the state.
Individual income tax
The State of Pennsylvania requires you to pay taxes if you are a resident (regardless of the whether they were earned within the state or not) or a non-resident that earns income from Pennsylvania
Types of taxable incomes
The income types on which tax is levied are:
In Pennsylvania, all types of income are generally subject to personal income tax unless they are specifically exempt by state law. This includes, but is not limited to, wages and salary, dividends, capital gains, royalties, and other types of income.
File return
To file a tax return in Pennsylvania, taxpayers must complete and submit a tax return form. The tax return form requires taxpayers to report their taxable income and any credits or deductions they are eligible to claim. Taxpayers must also calculate their tax liability and pay any taxes owed by the due date.
Pennsylvania provides a 6-months extension in filing taxes, due by October 16,2023 by filing form 276.
Form 276
Extension is only for filing and not for tax payment.
Due
quarterly or annually
Pay taxes
Taxes in Pennsylvania are due by 18 April, 2023. Go to the official Pennsylvania Department of Revenue website.
Estimated taxes must be paid quarterly if your income isn't withheld by your employer.
Estimated taxes are to be made quarterly in instalments by the 15th of April, June, September, and January.
Type of tax
flat tax
Due
quarterly or annually
Deductions
Tax deductions are a reduction in the amount of income that is subject to taxation. It allows taxpayers to lower the amount of taxable income they have, which in turn reduces the amount of tax they owe. Tax deductions are available for a wide range of expenses, such as charitable donations, mortgage interest, medical expenses, and business expenses.
Credits
A tax credit allows taxpayers to reduce the amount of taxes they are required to pay. This is different from a tax deduction, which reduces the amount of income that is subject to taxation. Tax credits are applied directly to the tax liability, while deductions are applied to the taxable income.
Exclusions
Tax exclusions are an amount of money or income that is not subject to taxation. This means that taxpayers do not have to pay taxes on this income.
Frequently asked questions
Business entities in Pennsylvania
There are several business entities in Pennsylvania
Pennsylvania LLC
Page sponsorWhy we like StartGlobal?
My genuine thoughts
Willy Justin
Founder, Statepedia
StartGlobal: Legal + Taxes + Bookkeeping for solopreneurs
Product
For small businesses, managing taxes, accounting and everything legal is just a pain. Nobody wants to do it, but they have to. Instead of working with CPAs, attorneys and others separately, Start brings all of them under a single subscription. It’s just smooth.
Team
I know the team behind StartGlobal very well. It’s a very hardworking group of individuals who are genuinely passionate about small businesses. They are backed by successful founders like Balaji Srinivasan, Biz Stone(Twitter) and others.
Price
Getting a CPA or attorney is a matter of thousands of dollars. It’s just unfair to pay so much when you’re a small business. Start has a single subscription that covers it all. It is a definite money saver.
$599 one-time