As in every other state, the state of Pennsylvania has various types of taxes. All of these types of tax are full of exceptions and extremely specific requirements. Below we have gone through the major types of tax that will affect small businesses. Our intent is to give you a general understanding of when the various taxes will apply to you and what they will mean to your business.
- Franchise tax is required from most corporations doing business in Pennsylvania, and Pennsylvania limited liability companies.
- Income tax on business income computed at the rate of 9.99 percent of corporate taxable net income is required in Pennsylvania.
- Personal income tax based on a person's income is 3.07 percent of taxable income in Pennsylvania.