Pennsylvania has been ranked as having the 18th highest income tax burden in the nation, according to a recent analysis by financial website Wallethub(^1^). The study compared tax burdens among states, with Pennsylvania ranking 25th overall. However, when broken down into property, sales, and income taxes, the state fared worst in the income tax category.
The current Pennsylvania personal income tax is levied at the rate of 3.07 percent against taxable income of resident and nonresident individuals, estates, trusts, partnerships, S corporations, business trusts, and limited liability companies not federally taxed as corporations(^2^).
In response to these findings, the state Senate is reportedly working on legislation that would reduce the state personal income tax rate to 2.8 percent. The proposed reduction is part of an ongoing effort to alleviate the tax burden on Pennsylvania residents.
The Wallethub analysis used a 'tax burden' ratio to measure the proportion of total personal income that residents pay toward state and local taxes. This ratio varies across the U.S., with some states imposing a higher tax burden on their residents than others(^1^).