Pennsylvania State Tax Guide
Pennsylvania state tax rates and rules for income, sales, property, fuel, cigarette, and other taxes that impact residents.


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.]

Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
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).
Related Content
- Will Pennsylvania Tax Breaks Help Replace Lost Residents?
- 10 States with the Highest Gas Taxes
- The Most Expensive Places to Die In (Due to Death Taxes)

Katelyn has more than 6 years’ experience working in tax and finance. While she specializes in tax content, Katelyn has also written for digital publications on topics including insurance, retirement and financial planning and has had financial advice commissioned by national print publications. She believes that knowledge is the key to success and enjoys helping others reach their goals by providing content that educates and informs.
-
Year-End Tax Planning for a Financially Healthier Retirement
Getting your tax ducks in a row for the end of the year can decrease your tax liability and make the most of your income, now and in retirement.
By Ryan Marston, Investment Adviser Representative Published
-
Where to Start Financially After a Life-Changing Diagnosis
Dealing with an illness, yours or your child’s or that of another loved one, is hard enough without adding financial duress. Here are some considerations and suggestions for covering expenses.
By Stephen B. Dunbar III, JD, CLU Published
-
Capital Gains Tax on Real Estate and Home Sales
Capital Gains Tax Selling your home or a rental property? Here are important capital gains tax rules to keep in mind.
By Joy Taylor Published
-
Another Big IRS Tax Change for Online Sellers
Selling Online Just in time for the holidays, the IRS is delaying a significant tax 1099-K reporting requirement for 2023.
By Kelley R. Taylor Last updated
-
Tax-Deductible Black Friday Deals for the Self-Employed
Black Friday Deals Some Black Friday deals can help the self-employed save on business expenses and taxes.
By Katelyn Washington Published
-
Did You Overpay for Thanksgiving Dinner?
Thanksgiving 2023 marks the second most expensive Thanksgiving dinner in history. But how much it cost depended on what you bought, where you live — and whether your state taxes groceries.
By Katelyn Washington Last updated
-
Most Expensive States for Retired Military Service Members
Military Retirement Veterans can keep more of their military retirement pay by avoiding these high-taxed, most expensive states for retired service members.
By Katelyn Washington Last updated
-
2023 401(k) Contribution Deadline Coming Soon
401(k) Contributions Year-end is the deadline for making max 401(k) contributions that can increase your savings for retirement and help lower your tax bill.
By Kelley R. Taylor Last updated
-
10 Worst States To Retire in if You Hate Paying Taxes
State Taxes Relatively high tax burdens make these places the worst states to retire.
By Katelyn Washington Last updated
-
Charitable Donations: What To Know About Scams and Taxes Before You Give
Donations Giving to a charity can make you feel good and lower your tax bill, but the IRS says to beware of fake charities.
By Katelyn Washington Last updated