Major State-Level Tax Rates in the Greater Philadelphia Region Download Data |
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Delaware |
New Jersey |
Pennsylvania |
Individual Income Tax
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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 6.95% over $60,000. Marginal rate on income over $60,000 was increased on 1/1/2010.
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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.
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| Corporate Income Taxes |
8.7% of taxable income derived from Delaware. Headquarters management corporations pay greater of 8.7% of taxable income or $5,000. Banking organizations taxed at 8.7% 0 to $20,000; 6.7% $20,001 to $25,000; 4.7% $25,001 to $30,000; 2.7% $30,001 to $650,000; and 1.7% for amounts above $650,000. Banks and trust companies may elect to pay an alternative bank franchise tax. |
9% flat rate* *(s) on apportioned net income. Taxed on a separate entity bases. The apportionment is 25% property, 25% payroll and 50% sales. Starting on January 1, 2012, NJ will begin to phase in over a three year period a 100% sales factor. 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 7.5%. Net operating loss carry forward for 7 years. |
The tax rate is 9.99% on apportioned net income or net income earned in PA. |
| Apportionment Formulas for Corporate Income Taxes |
Evenly weighted three-factor formula consisting of property, payroll, and sales or receipts. |
The apportionment formula was formerly 25% property, 25% payroll and 50% sales. Starting on January 1, 2012, NJ will begin to phase in over a three year period a 100% sales factor. |
In tax year 2012 the apportionment factors are: 90% sales, 5% payroll and 5% property. |
| Combined Reporting Requirements |
Separate reporting required |
Separate reporting required |
Separate reporting required |
| State Gross Receipts Tax |
Depending on the type business, gross receipts tax can range from 0.077% to 1.5365 of gross receipts.
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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 2014. An exemption for mfg. industries is provided. |
| Unemployment Compensation Rate for new employers |
For Calendar Year 2012 the new employer rate for non-construction firms is 2.6% on the first $10,500 of wages paid annually to a new employee; for construction firms the rate is 5.6% on the first $10,500 in wages paid. |
For calendar year 2012 the new employer rate is 2.9825% of wages paid up to a maximum of $30,300. New employers in NJ also must pay 0.1175% of wages paid up to a maximum of $30,300 for Workforce Development & Supplemental Workforce Funds. |
For calendar year 2012 new employer rate is 3.703% except construction companies that pay 10.2626%. An additional tax of 0.65% is in effect for 2011. Standard rates range from 6.0832% to 10.8236%. Wage base is $8,000. Maximum weekly benefit in 2012 is $573.
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| 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. |
Up to 2% of the actual consideration or price paid. 1% is levied by the Commonwealth, an additional 1% can be imposed by municipalities and school districts. |
| Personal Property Tax |
None |
Intangible personal property is exempt; some tangible personal property is taxable. |
Some intangible personal property is taxable; intangible personal property is not taxed.
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| Sales and Use Tax |
No sales and use tax. |
7% on taxable sales and uses, rentals, occupancies, admissions and selected services. Basis for sales - gross receipts or service charge; basis for use - price or service charge. Manufacturing machinery and raw materials are exempt; fuels are taxable. |
The levies a 6% tax on the purchase of tangible personal property and some services. Manufacturing equipment and raw materials are exempt; fuels are taxable. An additional 2% sales and use tax is levied in the City of Philadelphia as of October 2009. The City's sales tax rate is scheduled to return to 1% on July 1, 2014. |
| Net Operating Loss Deduction from Corporate Income |
2 back, ($30,000 limit), 20 forward. |
0 back, 7 forward; 0 back and 20 forward for privilege periods beginning after 6/30/2009. |
0 back and 20 forward, limited to: 1) greater of $3 million or 15% of taxable income for 2009 tax year; and 2) greater of $3 million or 20% of taxable income for years after 2009. |
| Capital Loss Carryover Allowances |
Conforms to IRS: may carry back capital loss to each of the 3 tax years preceding the loss year and any excess may be carried forward for 5 years following the loss year. |
Conforms to IRS: may carry back capital loss to each of the 3 tax years preceding the loss year and any excess may be carried forward for 5 years following the loss year. |
Conforms to IRS: may carry back capital loss to each of the 3 tax years preceding the loss year and any excess may be carried forward for 5 years following the loss year. |
| Treatment of Capital Gains from Sale of IP and Tech-based Businesses |
Taxable as corporate net income |
Taxable as corporate net income |
Taxable as corporate net income |
| Depreciation Rates for Laboratory and Mfg. Equipment (If Different from IRS Guidelines) |
No adjustments to federal deduction, including bonus depreciation, is required. |
Subtraction allowed after recomputing depreciation without regard to federal deduction for: 1) federal bonus provisions; and 2) accelerated depreciation on property placed in service on or after 1981 and prior to 7/7/1993; and 2) depreciation of safe harbor lease property. |
Addition required for federal bonus depreciation. Subtraction allowed in current and subsequent years equal to 3/7 of bonus depreciation adjustment. |
| Sales Tax Exemptions for Mfg. and R&D Equipment |
Not applicable, no sales tax in Delaware. |
Purchases of manufacturing equipment, excluding office equipment, is exempt. |
Medical devices are exempt. Pollution control equipment is not exempt. Purchases of manufacturing equipment, excluding office equipment, is exempt. Medical devices are exempt. Pollution control equipment is exempt. |
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