Governor Josh Shapiro, surrounded by a group of government officials and business leaders, smiles and shows an exectutive order document for the just-announced Permit Fast Track program.

Taxes

Pennsylvania Taxes

The Pennsylvania Department of Revenue (DOR) is responsible for collecting all Pennsylvania taxes, including all corporate taxes and taxes on inheritance, personal income, sales and use, realty transfer, motor fuel, and all other state taxes.

Pennsylvania has a flat income tax rate of 3.07% that is the lowest of all eight states with this type of system. The statewide sales tax rate is 6%.

Pennsylvania taxes are not only improving, but already offer below-average taxation and special tax benefits to businesses throughout the state. Some of the existing taxation benefits in Central Pennsylvania include:

  • One of the lowest personal income tax rates in the country: 3.07%
  • A property tax burden 14% below the national average
  • No Pennsylvania state tax imposed on real or personal property
  • Pennsylvania keeps a nearly $5 billion in its Rainy Day Fund to avoid tax increases during times of economic downturn
  • Reduced or eliminated taxes with Keystone Opportunity Zone sites
  • Reduction in Corporate Net Income tax rate
  • Like-Kind Exchanges
  • Tax Deduction for Qualifying Equipment Purchases

PA Gets It Done: A Business Climate Built For Action

PA Tax Differentiators (PDF)