Pennsylvania Income Tax Calculator

Taxes in Pennsylvania

Pennsylvania State Tax Quick Facts

• State Income tax: 3.07% 
• Local Income tax: 0% - 3.79%
• Sales tax: 6% - 8%
• Property tax: 1.41% average effective rate
• Gas tax: 58.70 cents per gallon

Pennsylvania receives tax revenue from two primary sources: a statewide income tax of 3.07% and a statewide sales tax of 6%. In addition to these two state taxes, Pennsylvania residents will also face local taxes on real estate, sales and income.

Many cities in Pennsylvania collect a Local Earned Income Tax. This is typically 1%, but can be as high as almost 3.9%. In smaller municipalities, this tax is capped by state law at 2%. However, in many larger cities, including Pittsburgh and Philadelphia, you'll encounter higher rates.

A financial advisor can help you understand how taxes fit into your overall financial goals. Finding a financial advisor doesn't have to be hard. SmartAsset’s free tool matches you with up to three vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goalss, get started now.

Pennsylvania Income Tax

Pennsylvania utilizes a “flat tax” system. This means that every taxpayer in the state, regardless of their level of income, pays the same percentage of their taxable income in state income taxes. That rate is 3.07%.

That does not mean that taxpayers in Pennsylvania have lower tax bills, however. For starters, unlike many other states that collect an income tax, Pennsylvania has no standard deduction or exemption. Additionally, itemized deductions (which reduce your taxable income) are limited to just four categories: medical savings account contributions, health savings account contributions, 529 college savings plan contributions and IRC Section 529A Pennsylvania ABLE Savings Account Program contributions.

The net effect is that while Pennsylvania’s actual tax rate is lower than in many other states, its effective tax rate (the actual amount paid as a percentage of income) may be higher for many taxpayers.

Local Earned Income Tax

Municipalities in Pennsylvania can collect income taxes of their own, called a “Local Earned Income Tax.” While small cities collect a tax of no more than 2% (in many places, the rate is just 1%), larger cities typically collect more. Below are the local earned income tax rates for Pennsylvania’s largest cities.

Pennsylvania Sales Tax

The statewide base sales tax rate in Pennsylvania is 6%. This is the rate charged in most places around the state, with two exceptions. The first is Allegheny County (which includes the city of Pittsburgh), where there is an additional 1% sales tax. The other exception is in Philadelphia, where there is a local surcharge totaling 2%, bringing the total sales tax rate there to 8%.

Numerous items are excluded from sales taxes in Pennsylvania, including clothing and footwear, textbooks, most groceries, internet service, toilet paper, fitness club fees, most medicine and residential fuels including firewood, natural gas and electricity.

Pennsylvania Alcohol Tax

Alcoholic beverages are subject to additional excise taxes in Pennsylvania, although that tax is often included in the price. All liquor sold by the Pennsylvania Liquor Control Board (LCB) is taxed at 18%. The tax is eight cents per gallon for beer.

Pennsylvania Property Tax

The average effective property tax rate in Pennsylvania is 1.41%, but that varies greatly depending on where you live. In Philadelphia County, for example, the average rate is 1.05%. In Allegheny County, the rate is 2.00%. These rates are based on the median annual tax payment as a percentage of median home value.

Seniors, adults with disabilities and widows or widowers over age 50 may also be eligible for a property tax rebate of up to $1,000, depending on the city of residence and income level.

If you’re considering buying a property in Pennsylvania or are looking into refinancing a current home loan, our Pennsylvania mortgage rates guide lays out important information you’ll need to get started on the process of getting a mortgage.

Pennsylvania Inheritance Tax

Inheritances given to state residents is taxed depending on the relation of the deceased to the person receiving the inheritance. There is no tax on transfers to a surviving spouse or to a parent from a child aged 21 or younger. The tax is 4.5% for direct descendants (children, grandchildren, etc.), 12% for siblings and 15% for other heirs.

Pennsylvania Gas Tax

Pennsylvania has a gas tax of 58.70 cents per gallon. 

Pennsylvania Small Games of Chance Tax

Games sold in taverns (like computerized blackjack) are subject to a state tax of 60% of net revenue earned by the game. The host municipality will also charge a tax of 5% of net revenue.

• Pennsylvania is named after William Penn, to whom the state land was given as payment for a debt owed him by King Charles II of England.
• The name Philadelphia comes from the Greek words “philos,” which means love, and “adelphos,” which means brothers.