Pennsylvania’s statewide sales tax rate is 6%, and localities can add up to 2%. Combined with the state sales tax, the highest sales tax rate in Pennsylvania is 8%.
Taxable and Exempt Goods in Pennsylvania
Goods that are subject to sales tax in Pennsylvania include physical property, like furniture, whereas prescription and non-prescription medicine, groceries, gasoline, and clothing are tax-exempt.
Income and Other Tax Rates
Pennsylvania has a flat income tax rate of 3.07%. The FICA tax rate will remain the same at 6.2% for 2023.
The New Jersey state sales tax rate is 7%, with groceries, clothing and prescription drugs being exempt.
New Jersey Tax Structure
For single taxpayers in New Jersey, the rate is 1.4% on the first $20,000. Tax rates and thresholds typically are reviewed and published annually.
Tax Estimation and Filing
You can quickly estimate your taxes by selecting the year, status, income, and expenses or enter specifics for a detailed calculation. Taxes can be paid in full by April 15, 2024, or in four installments.
State Tax Comparisons
Some states do not have income taxes, while others like New Jersey have progressive tax rates up to 10.75%. The sales tax rate for goods transferred in-state is 6.625%.
Local Sales Tax Variations
While Pennsylvania has no local income taxes, Allegheny County has a 1% sales tax, and Philadelphia has a 2% local sales tax.
Deductions and Exemptions
Pennsylvania offers tax deductions for items such as mortgage interest and charitable contributions. Over 300 items are exempt from Pennsylvania sales tax.
Sales Tax by State
Pennsylvania has higher sales tax rates than most states, but some states like Alabama, Louisiana, Colorado, New York, and Alaska have higher average local sales taxes than their state sales tax rate.