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Pennsylvania Basic Business Taxes

Corporate Taxes & Incentives Guide
Corporate Net Income Tax: 9.99 percent on federal taxable income, without the federal net operating loss deduction and special deductions, and modified by certain additions and subtractions. Domestic and foreign corporations are subject to the corporate net income tax for the privilege of doing business; carrying on activities; having capital or property employed or used in Pennsylvania; or owning property in Pennsylvania.

Capital Stock and Foreign Franchise Tax: Imposed at a rate of 0.89 mills; this tax is being phased out and is anticipated to be completely eliminated by 2016. Assets used in manufacturing, processing, or research and development are exempt from this tax.

Sales and Use Tax: 6 percent on the sale at retail of tangible personal property and certain specifically enumerated services. By law, a 1 percent local tax is added to purchases made in Allegheny County, and 2 percent local tax is added to purchases made in Philadelphia. Purchases of materials to be consumed in manufacturing or those to be used directly in manufacturing (e.g., equipment, raw materials, etc.) are exempt from the sales and use tax.

Property Tax:
Imposed by counties, municipalities, and school districts on the assessed value of property as established by local assessor; no county or state tax on personal property, whether tangible or intangible

Incentive and tax information is provided to Area Development by each state's economic development or commerce agency for information purposes only and is subject to revision at any time by the state government. Please contact the state agency directly for full requirements and offerings. This information was last updated November 2014.

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