Pennsylvania State Tax: Overview
Some Pennsylvania state taxes are high compared to other states, including the Commonwealth's gas tax. Property taxes In Pennsylvania are also relatively high when compared to those in other states. Pennsylvania has a flat income tax, which is low when compared to many other states, but local districts can also impose income taxes.
The sales tax in Pennsylvania is average when compared to other states, especially considering many items are tax-exempt. And Pennsylvania's tax on beer is one of the lowest in the country.
[Data for this state tax guide was gathered from several sources including the U.S. Census Bureau, the state’s government website, the Sales Tax Handbook, and the Tax Foundation. Property taxes are cited as a rate percentage rather than the assessed value.]
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Pennsylvania Income Taxes
Pennsylvania tax on retirement benefits: Social Security and Railroad Retirement benefits are not taxed by the state. Income from private employer, government, and military retirement plans paid after the taxpayer becomes eligible to retire is tax-exempt.
Pennsylvania Income Tax Range
Pennsylvania has a flat rate of 3.07%. Municipalities and school districts can also impose taxes on wages or income.
Pennsylvania Sales Tax
Pennsylvania's statewide sales tax rate is 6%, and localities can add up to 2%, according to the Tax Foundation.
- Groceries are tax-exempt.
- Prescription drugs are tax-exempt.
- Diapers and some feminine hygiene products are tax-exempt.
How Much Are Property Taxes in Pennsylvania?
In Pennsylvania, the average effective property tax rate is 1.53%, which is higher than in most other states.
Pennsylvania Property Tax Breaks for Retirees
Pennsylvania Property Tax and Rent Rebates: Some homeowners and renters 65 or older may be eligible for property tax or rent rebates through the Property Tax/Rent Rebate Program.
To qualify, residents must meet income guidelines and apply for the rebate. Applications for the rebates have been extended to December 31, 2023.
(Note: Widows and widowers 50 and older and people with disabilities age 18 and older may also qualify for a rebate.)
Pennsylvania Motor Fuel Taxes
Gasoline: $0.611 per gallon
Diesel: $0.785 per gallon
Pennsylvania Alcohol and Tobacco Taxes
| Cigarettes | $2.60 per pack |
| Other tobacco products | $0.55 per ounce |
| Vapor products | 40% of wholesale price |
| Beer | $0.08 per gallon |
| Wine | $2.50 on direct-to-consumer shipments |
| Liquor | State-Controlled (18%) |
(Note: Sales tax and local taxes may apply to alcohol and tobacco purchases.)
Pennsylvania Estate and Inheritance Taxes
Pennsylvania's inheritance tax ranges from 0% to 15%. Spouses and parents inheriting property from a child 21 are younger are exempt from paying the tax. Other direct descendants may need to pay a 4.5% tax rate, and siblings are subject to a 12% rate. Unrelated heirs pay a 15% inheritance tax in Pennsylvania (with some exceptions).
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