Filing Pennsylvania State Taxes

You need to pay a flat income tax rate of 3.07% in the state of Pennsylvania with no personal exemptions. In some states the income tax will change according to income, but the rate is the same for everyone in Pennsylvania. You also need to pay school district, county and municipal taxes in Pennsylvania. You can get the rates of these taxes from the website of the Department of Community and Economic Development. If your annual income is not that great, you can easily qualify for the state’s tax forgiveness credit.

Great Income Tax

Sales Tax

On taxable goods and services, you need to pay a 6% state sales tax in Pennsylvania. There is an additional 1% local sales tax on sales of taxable goods and services located from Allegheny county and the counties that encompass Philadelphia. Food, drugs, clothes and textbooks are some of the items that are exempt from sales tax.

Personal and Real Estate Property Taxes

There is no provision for state taxes on personal property and real estate in Pennsylvania. Personal property and real estate taxes are reserved for counties, local governments and municipalities. As all the districts in Pennsylvania levy property and real estate taxes, it is very important that you know the name of your county and municipality where you live to know how much you need to pay for your taxes. Pennsylvania Lottery funds and Pennsylvania Department of Revenue administers a program for the elderly and disabled. If you manage to qualify for this program, you can get around $650 a year from the Department of Revenue. The Pennsylvania Department of Revenue often publishes a list of employer withholding tax accounts and delinquent sales in order to collect unpaid state taxes.

Inheritance and Estate Tax

The tax laws change often in each state with regard to inheritance taxes as well as estate taxes. You have to check regularly to know for sure if these taxes are applicable in your state. The federal inheritance and estate taxes vary according to state so you have to check Pennsylvania inheritance and estate tax by both state and federal entities.