View a complete table of State Level Tax Rates

Philadelphia Business Privilege Tax News

Mayor Nutter's Administration is committed to aggressively reducing tax rates for businesses and employees across all sectors of the economy. Due to the City of Philadelphia's budget deficit, the plans to continue lowering the Business Privilege Tax (BPT) have been delayed. The BPT is currently at 1.41 mills of gross receipts and 6.45% on taxable net income.

The City's wage tax rates were lowered in July, 2010 to 3.92 %for residents and 3.49% for non-residents working in the City.

Corporate Income Tax

• The tax rate is 9.99% on net income. 

Capital Stock and Franchise Tax (CSFT)

• 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.

Personal Income Taxes

• 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

State Sales Taxes

• 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.

Real Property Taxes

• County, municipal and school districts determine the amount of property tax to be paid.

State Gross Receipts Taxes

• Pennsylvania does not have a state-level gross receipts tax.

Public Utility Gross Receipts Taxes

• 50 mills on telecommunication services.
• Electric, water and hydroelectric corporations - 44 mills with Revenue Neutral Reconciliation (RNR) rate subject to change annually.

Public Utility Realty Tax (PURTA)

• Rate set annually to raise required Realty Tax Equivalent (RTE) revenue.
• An additional 7.6 mills was levied on state taxable value in 1998 and thereafter for deposit into the Public Transportation Assistance Fund.

Insurance Gross Premiums Tax

• 2% plus any retaliatory tax.
• 3% surplus lines tax rate is imposed on policies written with unlicensed non-life insurers.

Corporate Loans Tax

• Includes Cooperative Agricultural Association and Electric Cooperative Corporation Taxes.
• 4 mills on indebtedness.

Liquid Fuels Tax

• Gasoline and gasohol - $0.312/gallon.
• Diesel and kerosene - $0.381/gallon.
• Aviation gasoline - $0.054/gallon.
• Jet fuel - $0.016/gallon. 

Incentives and Tax Credits
Visit our Incentive and Taxes section for more information on available tax credits, grants and other financial assistance.

Source: Pennsylvania Department of Revenue

The information on Pennsylvania Taxes is subject to change. The data presented on this Web site may not be accurate or current. Visit the Pennsylvania Department of Revenue for the more accurate and current information.