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Some Important Facts about PA State Taxes
from:An overview of PA State taxes can be found below:
1) Personal Income Tax
Pennsylvania has a flat tax rate of 3.07 percent on individual income, with no personal exemptions. Taxes on county, municipal and school district are also collected. However, Pennsylvanians who live on a modest income may qualify for the state's Tax Forgiveness Credit. Returns of PA State taxes are due on April 15, or the next business day if that date falls on a weekend or holiday.
2) Sales Tax
Pennsylvania imposes a 6 percent state sales tax on taxable goods and services. A local sales tax of 1 percent is collected on sales of taxable goods and services initiated from a location in Philadelphia and Allegheny counties. Major items exempt from sales tax include raw food, apparels, drugs, textbooks, sales for resale and residential heating fuels.
3) Personal and Real Property Taxes
Pennsylvania does not levy taxes on real estates or personal properties. Those taxes are reserved for the local governments such as counties, municipalities and school districts. Usually, all three districts levy real estate or property taxes, so you will need to know what county, school district and municipality you live in.
Municipalities are permitted to levy real estate property taxes that cannot exceed 30 mills on the assessed value of the property without special permission of the courts. More information on this measure is available at the Pennsylvania Department of Education website.
The state's Property Tax/Rent Rebate program is available to qualified seniors and permanently disabled citizens. It is funded by the Pennsylvania Lottery and administered by the PA Department of Revenue. Qualified taxpayers can reimburse up to $650 a year for the amount they paid in property taxes or rent in the previous year. Local governments can impose a variety of local taxes, from the earned income tax to the real property tax to various other taxes. Employers are required to withhold from employees earned income and emergency and municipal services taxes imposed by municipalities and school districts.
4) Inheritance and Estate Taxes
Pennsylvania collects an inheritance tax. It has an estate tax based on a decedent's total gross estate and limited to the credit for state death taxes allowed on the federal estate tax return. However, since the federal credit for state estate tax payments has been phased out, the Keystone State's estate tax is not imposed.
Other Facts about PA State Taxes
Taxpayers can track the status of the refunds of their PA State taxes online. To collect unpaid state taxes, the Pennsylvania Department of Revenue publishes a list of delinquent sales and employers withholding tax accounts. Active full-time military pay is not taxable for Pennsylvania purposes if earned outside the state by a Pennsylvania resident.
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