Major
State-Level Tax Rates in the Greater Philadelphia Region |
| |
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.
|
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.
|
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 partnernships |
| 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 apportionted 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 loss 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. Apportionment
formual is 15% property, 15% payroll and 70% sales. There is a 20-year net
operating loss carryover with an annual limit of the greater of $3,000,000 or
12.5% of taxable income. |
| 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 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 |
Imposes a capital stock and franchise tax of 0.389%
on apportioned capital stock value, calculated as (.5*(average net
income/.095 + (.75)(net worth))-$150,000). This tax will be phased out by
2011. Exemption for manufacturing industries is provided. |
| Unemployment Compensation Rate for new
employers |
Delaware: new employer rate of 2.2% on the first
$8,500 of wages paid annually to a new employee. |
2.8% times wages paid up to a maximum of $25,800. |
Unemployment Compensation (new employer rate) 4.152%
on first $8,000 of wages plus 0.09% on total wages paid to the employee. |
| 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 loocal 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 1% sales and use tax is collected
in Philadelphia |
| Total taxes on Gasoline |
$.23 per gallon |
$.145 per gallon |
$.312 per gallon |
