Pennsylvania Taxes

Given in this chapter is a brief summary of the structure of taxation and the way the citizens of Pennsylvania pay their taxes.

  • The rate of personal income tax is a flat 3.07% on the individual income earned with no exemptions.
  • School district, county and municipal taxes are also collected.
  • Residents of Pennsylvania who earn a modest income are eligible for what is known as the state’s “Tax Forgiveness Credit”.
  • Income tax returns in Pennsylvania are due on the 15th of April every year and on the next business day if the 15th falls on a weekend or a public holiday.

Pennsylvania Sales Tax

  • Taxable goods and services are taxed at a rate of 6% in the state of Pennsylvania.
  • There is also a 1% local sales tax which is collected on goods and services originating from Allegheny county and Philadelphia.
  • Most-wearing apparel, textbooks, residential heating fuels, drugs, food except ready-to-eat and sales for resale are all exempt from sales tax.

Pennsylvania Property Tax

  • There is no collection of taxes on personal property or real estate by the state of Pennsylvania.
  • The above mentioned taxes are collected by counties, municipalities, school districts and local governments.
  • It is required to know which county, municipality or school district one lives in as all three districts are likely to levy property or real estate tax on an individual.
  • There is a limit beyond which a municipality is allowed to collect real estate property tax. Beyond 30 mills, the municipality will have to take permission from the courts.
  • The Taxpayers Relief Act gives an opportunity to school districts for lower tax rates.
  • Home owners are charged net profits and additional income tax.
  • Full information on the above taxes and exemptions thereof can be found on the website of the Department of Education.
  • There is a system of rebate on property tax and rent which applies to permanently disabled citizens and qualified seniors in the state of Pennsylvania.
  • Qualified seniors for example, are eligible to up to $650 per year for the taxes or rent they may have paid the previous year.

Pennsylvania Estate and Inheritance Tax

  • There is an inheritance tax collected by the state of Pennsylvania.
  • An estate tax is collected which is based on the gross value of the decedent’s estate.

Prior Year Pennsylvania Individual Tax Forms

2006 2007 2008 2009 2010

Where to Mail FEDERAL IRS Tax Forms within Pennsylvania:

IRS Form If you ARE NOT enclosing a payment, use this address: If you ARE enclosing payment, use this address:
1040: Department of the Treasury
Internal Revenue Service
Kansas City, MO  64999-0002
Internal Revenue Service
P.O. Box 37008
Hartford, CT 06176-0008
1040A: Department of the Treasury
Internal Revenue Service
Kansas City, MO 64999-0015
Internal Revenue Service
P.O. Box 37008
Hartford, CT 06176-0008
1040EZ: Department of the Treasury
Internal Revenue Service
Kansas City, MO 64999-0014
Internal Revenue Service
P.O. Box 37008
Hartford, CT 06176-0008