Major State-Level Tax Rates in the Greater Philadelphia Region |
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DELAWARE |
NEW JERSEY |
PENNSYLVANIA |
| Individual Income Tax |
0% on 1st $2,000; 2.2% on next $3,000; 3.9% on next $5,000; 4.8% on next $10,000; 5.2% on next $5,000; 5.55% on next $35,000; and 5.957% over $60,000.
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1.4% on 1st $20,000; 1.75% on next $15,000; 3.5% on next $5,000; 5.525% on next $35,000; 6.37% on next $425,000; and 8.97% over $500,000.
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Eight separate classes of income are subject to an annual income tax of 3.07 percent. Rate applies to pass-through entities such as S corporations and partnerships. |
| Corporate Income Taxes |
The tax rate is 8.7% on apportioned net income. Taxed on a separate entity basis. Equally weighted apportionment 33% property, 33% payroll and 33% of sales. Net operating loss carry forward to 20 years. |
9% flat rate* *(s) on apportioned net income. Taxed on a separate entity bases. The apportionment is 25% property, 25% payroll and 50% sales. The rate reported in the table is the corporation business franchise tax rate. The minimum tax is $500. Corporations with net income under $100,000 are taxed at 6.5%. Net operating losses carry forward for 7 years. |
The tax rate is 9.99% on apportioned net income or net income earned in PA. Taxed on a separate entity basis. Starting with tax year 2009, the apportionment formula was changed from 15% property, 15% payroll and 70% sales; to 83% sales, 8.5% payroll, and 8.5% property. In tax year 2010 the factors change to: 90% sales, 5% payroll and 5% property. The Net Operating Loss (NOL) cap was increased to the greater of $3 million or 20% as of 1/1/2010 for all years thereafter. |
| State Gross Receipts Tax |
Depending on the type business, gross receipts tax can range from 0.077% to 1.5365 of gross receipts. |
An Alternative Minimum Assessment based on Gross Receipts applies if greater than the corporate franchise tax. Corporations not subject to the franchise tax are subject to a 7.25% income tax. Banking and financial corporations are subject to the franchise tax. |
Pennsylvania does not have a state-level gross receipts tax. |
| Capital Stock and Franchise Tax |
Graduated franchise tax; maximum payment of $165,000. |
No franchise tax. |
In 2009-2010 PA increased the CSFT to 2.89 mills for three years - 2009, 2010, 2011. In 2012 the rate will be reduced to 1.89 mills; then to .89 mills in 2013; and finally to 0 mills in 23014. An exemption for mfg. industries is provided. |
| Unemployment Compensation Rate for new employers |
For the calendar year 2009 the new employer rate for non-construction firms is 2.5% on the first $10,500 of wages paid annually to a new employee; for construction firms the rate is 4.7% on the first $10,500 in wages paid. |
For the calendar year 2009 the new employer rate is 2.6825% of wages paid up to a maximum of $28,900. New employers in NJ also must pay 0.1175% of wages paid up to a maximum of $28,900 for Workforce Development & Supplemental Workforce Funds. |
For the calendar year 2009 the unemployment compensation rates for new employers are 3.7030% on first $8,000 of wages for non-construction employers; and 10.26226% on the first $8,000 in wages for construction employers. New employer rates generally apply for the first two or three years that a new company pays wages. |
| Realty Transfer Tax |
2% on price of realty transfer; reduced to 1.5% when local municipality imposes its own 1.5% transfer tax. |
Graduated rate depending on consideration; effective state rate ranges from 0.6% to close to 1% for sale prices in excess of $1 million. |
1% of actual consideration or price paid. Additional realty transfer taxes levied by local municipalities of 1 to 3%. |
| Personal Property Tax |
None |
None |
None |
| Sales and Use Tax |
No sales and use tax. |
7% as July 2006. Basis for sales - gross receipts or service charge; basis for us - price or service charge. |
6%; an additional 2% sales and use tax is collected in Philadelphia as of October 2009. |
| Total taxes on Gasoline |
$.23 per gallon |
$.145 per gallon |
$.323 per gallon |
