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Pennsylvania Basic Business Taxes 2012

Pennsylvania's economic development, finance and tax organizations provide a range of incentive programs to initiate new business and commercial investment. Specific programs include a corporate net income tax, state tax credits, and a capital stock/foreign franchise tax.

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.

Capital Stock and Foreign Franchise Tax: At a rate of 2.89 mills; this tax is being phased out and is anticipated to be completely eliminated by 2014.

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 assesed value of property as established by local assessor; no county or state tax on personal property, whether tangible or intangible

The Pennsylvania Department of Revenue

Business Taxes (corporation tax, employer withholding, sales/use tax and registration)
717-787-1064 Electronic Business Tax Filing (e-TIDES)

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.

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