Understanding Personal Income Tax in Pennsylvania

Pennsylvania's personal income tax is discussed.

If you are a resident or non-resident of Pennsylvania and receive taxable income individually from property owned or business transacted in Pennsylvania, you are subject to tax on net income. Therefore, if you are operating your business as an S corporation>, partnership, limited liability company, or sole proprietorship, you will be subject to a personal income tax on your business income that passes through to you.

The tax is computed at the rate of 3.07% of taxable income. In addition, local income taxes apply in certain areas of Pennsylvania, so be sure to check with your local government.


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