As the saying goes, the only two certainties in life are "death" and "taxes." Below is a list of Pennsylvania's taxes. Other local taxes may apply depending on where you locate your business.

Visit the Tax-Free KOZ Page to learn how you avoid many of these taxes until 2010 by simply locating in a KOZ-approved building or site!

Corporate Net Income Tax(1) 9.99%
NOL Carryover $1,000,000 Dividend exclusions. ACRS. Subchapter S Election. Special Tax Credit for neighborhood assistance, economic revitalization tax credit, and homeowners mortgage assistance.

Sales Tax(2) 6%
Selective tax. Business exemptions for manufacturing, processing, farming, R&D, mining, printing, and sales/resale.

Unemployment Compensation Tax(3)
Employer (imposed on first $8,000 of wages for each employee)
-New Employer Contribution: 3.8255%

Worker’s Compensation
Rates vary as to experience/type of business.

Capital Stock and Foreign Franchise Tax 6.49 mills
rate as of the 2002 tax year
Tax exempt activities include manufacturing, processing, R&D, pollution control, and computer software development.

Personal Income Tax(4) 2.8% Flat
Exemptions are gross compensation less all retirement income.

(1) Retroactive as of 1/1/95.
(2) Includes certain business services.
(3) First year rate, thereafter based on experience. Construction employers pay different rate scale.
(4) Paid by individuals, business proprietorships, partnerships, and Pennsylvania S Corporations.