Retirement Tax Breakdown for Pennsylvania Residents

Complete Pennsylvania retirement tax guide: income tax rates, capital gains treatment, Social Security and pension taxation, property taxes, and sales tax. Overall retiree-friendliness rank: #20 of 51.

State Income Tax
3.07% top rate

1 bracket(s)

Capital Gains Rate
3.07%

Treated as ordinary income

Property Tax Rate
1.43%

#11 (Low)

Sales Tax Rate
6.3%

State 6% + local avg 6.3%

Tax-Friendly State

Pennsylvania fully exempts all retirement income — Social Security, pensions, and IRA/401(k) distributions. The flat 3.07% tax only applies to other income. Property taxes are above average.

Retirement Income Taxation

Social Security

Not taxed

Pension Income

Not taxed

Retirement Exemption

None

Tax Comparison Summary

State income tax3.07% top
Capital gains3.07%
Property tax1.43% effective
Sales tax6.3% combined
Overall retiree rank#20 of 51

Pennsylvania Income Tax Brackets

State Tax Bracket Schedule

RateFromTo
3.07%$0No limit

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