Monday, September 12, 2011

How Much Are the Taxes in Pennsylvania?

How Much Are the Taxes in Pennsylvania?thumbnail Consider taxes when making your budget. No matter where you live, taxes can have a big influence on your quality of life and the amount of income you get to keep. If you are planning to move to the Commonwealth of Pennsylvania, you should be aware of the tax rates citizens must pay. Residents of Pennsylvania face taxes on a number of levels, from the state income tax and sales tax to property taxes and local taxes.

When you make a purchase in the Commonwealth of Pennsylvania, you pay a sales tax rate of 6 percent. Clothing items and most food are exempt from this state tax rate, although the state does impose a tax on sodas, chips and other items considered to be junk food.

The Commonwealth of Pennsylvania uses a flat income tax rate, as opposed to the graduated taxes used by the Federal government. No matter what your level of income, you can expect to pay a tax rate of 3 percent. The Commonwealth taxes wage income, as well as interest, dividends, capital gains and business income. Taxpayers in the Commonwealth can file their returns electronically and over the telephone as well as on paper.

If you own property in Pennsylvania, you must pay taxes on that property each year. In Pennsylvania real estate taxes are used to fund the public school system, and each school district imposes its own taxes based on the value of the homeowner's property. The amount of property taxes varies from location to location, but affluent parts of the state tend to have higher rates than poorer and more rural areas. It is always a good idea to ask your realtor for current property taxes on any home you are considering.

Each municipality in the Commonwealth of Pennsylvania is free to impose its own local tax. The tax rate varies from location to location, but as of 2011 it generally runs between 1 and 2 percent of income. If you are planning to move into the state it is a good idea to contact the municipality or town where you plan to live and ask about the tax rate, since these rates are always subject to change.

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