Pennsylvania Tax Policy & Rates 2026
Income tax, sales tax, property tax, and overall tax burden for Pennsylvania in 2026, with political context.
No
No Income Tax
3.07% (flat)
Income Tax Rate
#15
Tax Burden Rank (1=highest)
#42
Property Tax Rank (1=highest)
Tax Policy Overview
Pennsylvania has one of the lowest flat income tax rates in the nation at 3.07% but high corporate taxes and high local taxes in Philadelphia. The state is gradually reducing corporate taxes. Pennsylvania has above-average overall burden when local taxes are included.
Key Tax Rates
| Tax Type | Rate / Status |
|---|---|
| Income Tax | 3.07% (flat) |
| No Income Tax | No |
| Sales Tax | 6.0% (+local 2% in Philadelphia, 1% in Allegheny) |
| No Sales Tax | No |
| Corporate Tax | 8.99% (decreasing) |
| Property Tax Rank | #42 nationally (1=highest) |
| Overall Tax Burden Rank | #15 nationally (1=highest) |
Political Context
Pennsylvania’s flat income tax rate is politically popular across parties. Corporate tax reduction has bipartisan support. Philadelphia’s wage tax (on all workers who work in the city) is uniquely high nationally and a persistent debate about city competitiveness. School property tax reform has been debated for decades without resolution.