Pennsylvania: Who Pays? 7th Edition
Pennsylvania
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All figures and charts show 2024 tax law in Pennsylvania, presented at 2023 income levels. Senior taxpayers are excluded for reasons detailed in the methodology. Our analysis includes nearly all (99.6 percent) state and local tax revenue collected in Pennsylvania.
State and local tax shares of family income
| Top 20% | |||||||
| Income Group | Lowest 20% | Second 20% | Middle 20% | Fourth 20% | Next 15% | Next 4% | Top 1% |
| Income Range | Less than $22,100 | $22,100 to $47,800 | $47,800 to $81,900 | $81,900 to $139,000 | $139,000 to $300,600 | $300,600 to $746,300 | Over $746,300 |
| Average Income in Group | $12,000 | $33,700 | $63,300 | $109,600 | $185,800 | $431,000 | $1,777,700 |
| Sales & Excise Taxes | 6.9% | 5.1% | 4.1% | 3.1% | 2.4% | 1.5% | 0.8% |
| General Sales–Individuals | 1.9% | 1.9% | 1.6% | 1.3% | 1% | 0.6% | 0.2% |
| Other Sales & Excise–Ind | 3.8% | 2% | 1.4% | 0.9% | 0.6% | 0.3% | 0.1% |
| Sales & Excise–Business | 1.3% | 1.2% | 1.1% | 0.9% | 0.8% | 0.6% | 0.5% |
| Property Taxes | 4.9% | 3.4% | 3% | 2.9% | 2.9% | 2.7% | 1.6% |
| Home, Rent, Car–Individuals | 4.5% | 2.9% | 2.5% | 2.4% | 2.4% | 2.1% | 0.5% |
| Other Property Taxes | 0.5% | 0.5% | 0.5% | 0.5% | 0.5% | 0.6% | 1.1% |
| Income Taxes | 2.7% | 4% | 4% | 3.9% | 3.9% | 3.8% | 3.5% |
| Personal Income Taxes | 2.7% | 3.9% | 4% | 3.9% | 3.9% | 3.8% | 3.3% |
| Corporate Income Taxes | 0% | 0% | 0% | 0% | 0% | 0% | 0.1% |
| Other Taxes | 0.5% | 0.3% | 0.3% | 0.2% | 0.2% | 0.2% | 0.1% |
| TOTAL TAXES | 15.1% | 12.8% | 11.4% | 10.2% | 9.4% | 8.2% | 6% |
| Individual figures may not sum to totals due to rounding. | |||||||
ITEP Tax Inequality Index
ITEP’s Tax Inequality Index measures the effects of each state’s tax system on income inequality. According to this measure, Pennsylvania has the 4th most regressive state and local tax system in the country. Income disparities are larger in Pennsylvania after state and local taxes are collected than before. (See Appendix B for state-by-state rankings and the report methodology for additional detail.)
Tax features driving the data in Pennsylvania
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Non-refundable “tax forgiveness” credit to low-income taxpayers
Refundable dependent care tax credit
Sales tax base excludes groceries
Levies a state inheritance tax
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Mismeasurement of home value in the property tax tilts in a regressive direction
No refundable income tax credits to offset sales, excise, and property taxes
Real estate transfer tax does not include higher rate on high-value sales
Does not use combined reporting as part of its corporate income tax
All retirement income is exempt from the personal income tax
Most local income taxes exclude investment income
No standard deduction or personal exemption
Personal income tax uses a flat rate
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