Tool | August 2016

State-by-State Guide to Taxes

Compare state tax rates and rules -- on income, ordinary purchases, gas, "sin" products, property, and more -- across the U.S.

Pennsylvania

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The Bottom Line
Map of Pennsylvania

Mixed Tax Picture

The Keystone State has a flat income tax rate of 3.07%, but property taxes can be steep in some communities.

Sales Tax

6%, but food, clothing, textbooks, heating fuels, and prescription and nonprescription drugs are exempt. Philadelphia has a local sales tax of an additional 2%, and Allegheny County (Pittsburgh's home county) adds a local sales tax of 1%.

Income Tax Range

Pennsylvania has a flat rate of 3.07%.

See Kiplinger.com’s Retiree Tax Map to learn how Pennsylvania taxes Social Security income and other forms of retirement income.

Motor Fuel Taxes

Gasoline: $0.52 per gallon.
Diesel: $0.65 per gallon.

Property Taxes

Median property tax on Pennsylvania's median home value of $164,200 is $2,521, according to the Tax Foundation.

See Kiplinger.com’s Retiree Tax Map for details on tax breaks for seniors in Pennsylvania.

Vehicle Taxes

Sales tax is due on purchases.

Sin Taxes

Beer and other malt beverages: $0.08 per gallon
Wine: N/A
Liquor: $7.21.
Pennsylvania directly controls the distribution and sale of alcohol. Liquor tax is an estimate by the Distilled Spirits Council of the United States and published by the Tax Foundation.

Cigarettes: $1.60 per pack
All other tobacco: None

Travel Taxes

Hotel: The state hotel occupancy tax of 6% is levied in lieu of sales tax. Philadelphia and Allegheny County charge an additional 1%.

Rental cars: 2% plus $2 per day. Philadelphia adds an additional 2%.

Taxes On Wireless Service

7%

Inheritance and Estate Taxes

The Pennsylvania inheritance tax is calculated as a percentage of the value of the estate transferred to beneficiaries. The amount is determined based on the relationship of the heir to the decedent and the decedent's date of death. The tax rate is 4.5% for transfers to direct descendants (lineal heirs), 12% for transfers to siblings and 15% for transfers to other heirs (except charitable organizations, exempt institutions and government entities). Property a husband and wife own jointly is exempt from the tax, and so is property inherited from a spouse or from a child 21 or younger by a parent. The inheritance tax for farming families was eliminated in 2012. If the inheritance tax is paid within three months of the decedent's death, a 5% discount may apply.

There is no state estate tax.

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