Pennsylvania State Income Tax: Rates, Filing and Refunds

Pennsylvania has one of the simplest state income tax structures in the country: a flat 3.07% rate that applies to all filers regardless of income level. Still, Pennsylvania has its own rules for what counts as taxable income, who must file and what happens if you miss a deadline or can't pay in full.

This guide will help Pennsylvania residents, part-year residents and nonresidents file accurately and on time.

Pennsylvania Income Tax Rate, What's Taxable and Who Must File

Pennsylvania tax laws require full and part-year residents with gross taxable income of at least $33 to file PA taxes even if no taxes are owed. The state has a flat personal income tax rate of 3.07% (unchanged for 2026). Some municipalities may also collect local income taxes. There are no standard deductions.

The following eight income sources are considered when evaluating taxable income in Pennsylvania:

Compensation (wages and salary)
Net income from business operations
Net gain or loss from property sales
Rent income
Dividends
Interest
Income from estates or trusts
Lottery and gambling proceeds

Full-time and part-year residents use PA-40 to file their Pennsylvania tax returns.

Full-year residents report all income regardless of where it was earned.
Part-year residents are taxed based on income earned during the time they were residents, regardless of where the income was derived. Part-year residents are also subject to state taxes on income earned in Pennsylvania, even if they are not residents of the state for the entire year.
Nonresidents who earn some form of compensation from in-state sources, excluding dividends from investments and profits from the sale of intangible property, are also subject to state taxes. Indicate your status as a partial-year resident or nonresident in the check box provided on Form PA-40.

Pennsylvania has signed reciprocal agreements with six states that apply to employment compensation: Indiana, Maryland, New Jersey, Ohio, Virginia, and West Virginia. Under this agreement, the other state will not tax income earned there, and taxpayers will pay taxes only to their state of residency. However, the agreements don't cover miscellaneous and non-employee compensation.

See the 2025 Pennsylvania Personal Income Tax Return guide for details on deductions, tax credits, and retirement income.

Local Income Taxes

In addition to the state's 3.07% rate, many Pennsylvania municipalities have a local Earned Income Tax (EIT) on residents and workers. Local EIT rates and collection rules vary by jurisdiction. Philadelphia imposes its own wage tax: 3.74% for residents and 3.43% for nonresidents earning income in the city. Local taxes are filed and paid separately from your Pennsylvania state return.

Pennsylvania Tax Deadlines, Extensions, and Estimated Payments

The deadline to file your 2025 Pennsylvania income tax return and pay any taxes owed is April 15, 2026.

If more time is needed to prepare the returns and meet the federal filing deadline, and you have already filed an extension for filing federal tax returns, filing Form REV-276 will not be required. Your new filing deadline becomes October 15, 2026. If you have not filed a federal extension or you owe PA taxes, file Form REV-276 before April 15 to request a state extension.

The tax extension resets the deadline to six months after April 15, but the payment date for taxes due cannot be extended; penalties begin to accumulate the day after the original deadline, which is typically April 15.

If you expect to owe Pennsylvania income tax and your income is not fully covered by withholding, you may be required to make quarterly estimated payments. Use Form PA-40ESR to submit payments and make them through the myPATH portal or by mailing a check to the PA Department of Revenue.

Penalties, Payment Plans and Amending Your Return

Pennsylvania imposes two separate penalties depending on your situation, and you can be assessed both at the same time:

Underpayment penalty: If you file on time but don't pay in full, a 5% penalty is applied to the unpaid balance.
Late filing penalty: If you file after the deadline, an additional 5% per month is applied to any unpaid tax, up to a maximum of 25%.

Interest accrues daily on any unpaid balance from April 15 at an annual rate of 7% for 2025–2026, regardless of whether you filed on time. Pennsylvania offers payment plans for balances under $50,000 (short-term, under 12 months) and extended plans for balances over $50,000.

Under or over-reporting income, erroneous deductions or improper tax credits can be corrected by filing an amended return using Form PA-40 and attaching a Schedule PA-40X. If you realized that you underreported income or claimed incorrect credits, you must file an amended return (and pay any additional tax, penalty and interest) within 30 days of your discovery. If you're claiming a refund, you have three years from the original return due date to file the amended return.

How to File Pennsylvania State Taxes

Make sure you have the following documents before you start:

Your Social Security number
All W-2s and 1099s reporting Pennsylvania income
Your prior-year PA-40 if making estimated payments
Your Pennsylvania driver's license or state ID number (optional, but may speed up processing)

Pennsylvania filers have options for filing electronically:

myPATH: The Pennsylvania Department of Revenue's free online filing system. Available at mypath.pa.gov. All forms are available at pa.gov.
E-file.com: Prepares your Pennsylvania return with your federal return, adds your details automatically and delivers an IRS e-file confirmation number after your return is accepted.

After filing, track your Pennsylvania refund anytime through myPATH. You will need your Social Security number and the exact refund amount you claimed.

Ready to file your Pennsylvania return? E-file.com prepares your PA state return alongside your federal return, imports your information automatically and sends you an IRS confirmation number the moment your filing is accepted. Start your state income taxes now.

Frequently Asked Questions

What types of income are taxed in Pennsylvania?

Pennsylvania taxes eight categories of income: compensation (wages and salary), interest, dividends, net income from business operations, net gain or loss from property sales, royalties, rents, copyrights and patents, income from estates or trusts, and lottery and gambling winnings. Investment income, including dividends and capital gains, is taxed at the standard 3.07% rate.

What deductions and credits are available to Pennsylvania filers?

Available deductions include contributions to medical savings accounts, health savings accounts, Section 529 plans, unreimbursed employee business expenses, and up to $2,500 in student loan interest reported on Schedule O.

Credits include the Child and Dependent Care Enhancement Tax Credit, the Tax Forgiveness program for lower-income filers, and the Working Pennsylvanians Tax Credit (WPTC), a new refundable credit equal to 10% of your federal EITC, automatically applied by the Department of Revenue.

You can use the WPTC calculator to estimate your credit.

Does Pennsylvania tax Social Security and retirement income?

No. Pennsylvania does not tax Social Security benefits, pension income, 401(k) distributions or IRA withdrawals. These are fully exempt from Pennsylvania state income tax. You may still owe federal income tax on some of this income, depending on your total household income.

Does a Pennsylvania tax extension give me more time to pay?

No. A Pennsylvania extension gives you more time to file your return, not more time to pay. Any taxes owed are still due by April 15, 2026. Penalties and interest begin accruing on unpaid balances the day after the original deadline, regardless of whether an extension was filed.

Note: States & U.S. territories may make changes to their tax laws with little notice. We do our best to keep this information up-to-date, but it is provided on an "AS IS" basis. For more see our terms.