Pennsylvania Business Taxes
Tax |
Rate |
KOZ / KOEZ
Abatement |
Real Property Tax
 |
| Luzerne County |
| Municipality |
Total Property taxes |
Ratio |
Hazle Township |
280.292 mils |
5% |
Butler Township |
278.292 mils |
5% |
Hazleton City |
309.092 mils |
5% |
West Hazleton Borough |
304.292 mils |
5% |
| |
|
|
| Carbon County |
| Municipality |
Total Property Taxes |
Ratio |
| Banks Township |
36.799 mils |
50% |
| |
|
|
| Schuylkill County
|
| Municipality |
Total Property Taxes |
Ratio |
| East Union Township |
49.408 mils |
50% |
|
Yes
|
Capital Stock/
Foreign Franchise Tax |
2006 – 4.99 Mills (0.00499)
2007 – 3.99 Mills (0.00399)
2008 – 2.99 Mills (0.00299)
2009 – 1.99 Mills (0.00199)
2010 – 0.99 Mills (0.00099)
2011 and thereafter – 0.00 Mills |
Yes |
Corporate
Net Income Tax |
9.99% |
Yes |
| Personal Income Tax |
3.07% |
Yes |
| Sales and Use Tax |
6.00% (Local 1% - Philadelphia County and Allegheny County ) |
Yes |
Unemployment
Compensation
Insurance Tax |
New employer rate is 3.5%
Standard rate is 5.4%
Maximum rate is 9.2%. |
No |
Real Property Tax
All real estate (unless specifically exempt) is taxable. The Commonwealth does not impose general tax on reality; instead, the tax is imposed by counties, cities, townships and school districts.
| Rate: |
Luzerne County
|
Municipality |
Total Property Taxes |
Ratio |
Hazle Township |
280.292 mils |
5% |
Butler Township |
278.292 mils |
5% |
West Hazleton Borough |
304.292 mils |
5% |
Hazleton City |
309.092 mils |
5% |
|
Carbon County
|
Municipality |
Total
Property Taxes |
Ratio |
Banks Township |
36.799 mils |
50% |
|
Schuylkill County
|
Municipality |
Total
Property Taxes |
Ratio |
East Union Township |
49.408 mils |
50% |
|
|
Notes: Assessment Ratio Formula:
Common Ratio * value of land/building * (total mils * 0.001)
KOZ/KOEZ Abatement: Yes |
Back to top Capital Stock and Foreign Franchise Tax
Property/Privilege tax imposed on corporations doing business in Pennsylvania. The following entities are corporations for Capital Stock/Franchise Tax purposes: Corporations, Joint-stock associations, Business trusts; and Limited liability companies
|
|
| Rate: |
2006 – 4.99 Mills (0.00499)
2007 – 3.99 Mills (0.00399)
2008 – 2.99 Mills (0.00299)
2009 – 1.99 Mills (0.00199)
2010 – 0.99 Mills (0.00099)
2011 and thereafter – 0.00 Mills |
Notes: Excludes from apportionment factor numerators attributes related to processing and research and development. A taxpayer can select either a three factor, or a single factor appointment method. The three factor apportionment method includes tangible property, payroll, and gross receipts. The single factor method equals taxable assets within Pennsylvania (tangible and intangible) over total assets.
KOZ/KOEZ Abatement: YES - Interstate apportionment applies to offset abatement for non- KOZ/KOEZ Pennsylvania activities.
Back to top Corporate Net Income Tax
Tax levied on corporations for the following privileges: (1) doing business in Pennsylvania; (2) carrying on activities in Pennsylvania; (3) having capital or property employed or used in Pennsylvania; (4) owning property in Pennsylvania.
Rate: 9.99%
Notes: Maximum net operating loss deduction $2 million per year. Net operating losses may be carried forward for ten years.
KOZ/KOEZ Abatement: YES - Interstate apportionment applies to offset abatement for non- KOZ/KOEZ Pennsylvania activities.
Back to top Personal Income Tax
Tax imposed on residents and nonresidents. Residents are taxed on all income categorized under eight enumerated taxable classed, and nonresidents are taxed only on the income from Pennsylvania sources.
Rate: 3.07 %
Notes: Lowest rate in the country.
KOZ/KOEZ Abatement: YES - Only residents of KOZs/KOEZs are eligible for the abatement of personal income tax. Special provisions apply to the credit corresponding to the distributive income of S Corporations and Partnerships.
Back to top Sales and Use Tax
Tax imposed on the sale at retail of tangible personal property
and specified services performed in Pennsylvania.
Rate: 6.00% (Additional local tax of 1% for Philadelphia County and Allegheny County )
Notes: All tangible personal property is taxable unless specifically exempt. Some of these exemptions include: resale; isolated sales; manufacturing; research and Development.
KOZ/KOEZ Abatement: YES - Retail sales of services or tangible personal property, other than motor vehicle, for the use or consumption by a qualified business at its facility within a KOZ/KOEZ are exempt.
Back to top Unemployment Compensation Insurance Tax
Tax imposed on employers who employ one or more individuals during
the calendar year.
|
|
| Rate: |
New employer rate is 3.5%
Standard rate is 5.4%
Maximum rate is 9.2%. |
Notes: Rate is based on Pennsylvania employment
history.
KOZ/KOEZ Abatement: No
Back to top Realty Transfer Tax
Tax imposed on every person who makes, executes, delivers, accepts, or presents for recording any document. The term person means a natural person, association or corporation.
|
|
| Rate: |
State Level: 1%
County Level : 1% |
Notes: The rate is imposed at the local level may not exceed
one percent. If both the municipality and the school district levy
the tax, they must share the one percent maximum. ( Philadelphia – 3%;
Pittsburgh – 2.25%)
KOZ/KOEZ Abatement: No
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