Advantages and Disadvantages of a Pennsylvania Corporation
Advantages of a Corporation
Disadvantages of a Corporation
Federal Tax Forms for Regular or "C" Corporations
Pennsylvania's 2012 Business Tax Climate Ranks 19thPennsylvania ranks 19th in the Tax State Business Tax Climate Index. The Index compares the states in five areas of taxation that impact business: corporate taxes; individual income taxes; sales taxes; unemployment insurance taxes; and taxes on property, including residential and commercial property.
Pennsylvania's Individual Income Tax SystemPennsylvania's personal income tax system consists of a flat rate of 3.07% on all personal income. Pennsylvania's top rate ranks 40th highest among states levying an individual income tax. However, many Pennsylvania taxpayers also pay a local tax on earned income, commonly 1% or 1.5%, with Philadelphia well above that. Pennsylvania's 2006 individual income tax collections at both state and local levels came to $995 per person, which ranked 16th highest nationally.
Pennsylvania's Corporate Income Tax SystemPennsylvania's corporate tax structure consists of a flat rate of 9.99% on all corporate income. Among states levying corporate income taxes, Pennsylvania's rate ranks 2nd highest nationally. In 2007, state-level corporate tax collections (excluding local taxes) were $184 per capita, which ranked 17th highest nationally.
Pennsylvania Levies Sales Tax Above National MedianGasoline Tax among Highest NationallyPennsylvania levies a 6% general sales or use tax on consumers, right at the national median. State and local governments combined collected $695 per capita in general sales taxes in 2006, which ranks 39th highest nationally. Pennsylvania's gasoline tax stands at 32.3 cents per gallon, ranking 10th highest nationally. Pennsylvania's cigarette tax stands at $1.35 per pack of twenty and ranks 21st highest nationally. The sales tax was adopted in 1953, the gasoline tax in 1921 and the cigarette tax in 1937.
Pennsylvania Property Taxes: Middle of the PackPennsylvania is one of the 37 states that collect property taxes at both the state and local levels. As in most states, local governments collect far more. Pennsylvania's localities collected $1,142.79 per capita in property taxes in fiscal year 2006, which is the latest year the Census Bureau published state-by-state property tax collections. At the state level, Pennsylvania collected $4.88 per capita during FY 2006, making its combined state/local property taxes $1,147.68, which ranks 20th highest nationally. State property tax collections per capita by state
Federal Tax Burdens and Expenditures: Pennsylvania is a Beneficiary State Pennsylvania taxpayers receive slightly more federal funding per dollar of federal taxes paid compared to the average state. Per dollar of Federal tax collected in 2005, Pennsylvania citizens received approximately $1.07 in the way of federal spending. This ranks the state 28th nationally and represents a rise from 1995 when Pennsylvania received $1.05 per dollar of federal taxes paid and ranked 28th nationally.
Reference - Tax Foundation
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