Pennsylvania

Pennsylvania's total tax burden (10.6% of income) is essentially the same as Virginia's (10.3% of income) — a difference of only +0.3 pts. On a $100K household budget, the move is roughly tax-neutral. Other factors (retirement rules, estate tax, specific categories) may matter more.

Pennsylvania top marginal income tax rate is 3.07%, versus 5.75% in Virginia. Compare across your expected income bracket — top rates kick in at different thresholds in each state.

Pennsylvania state sales tax is 6.00%. With average local add-ons, the combined rate is 6.34%. This applies to most retail purchases but rules on groceries, prescriptions, and services vary.

Pennsylvania median effective property tax rate is 1.49% of home value. On a $400,000 home, that is roughly $5,960/year. Property tax typically funds schools, municipalities, and county services — rates vary sharply within a state by school district.

Pennsylvania imposes a state inheritance tax (paid by beneficiaries based on relationship to decedent). Spouses and often children are typically exempt or taxed at lower rates; distant relatives and unrelated heirs pay more. No state estate tax applies to the estate itself.

In Pennsylvania: Social Security is not taxed. Pensions and 401(k)/IRA withdrawals are not taxed.

Pennsylvania capital gains treatment: Taxed at 3.07% flat rate as ordinary income. Compare to federal long-term capital gains rates (0%, 15%, or 20%) — some states offer preferential treatment for long-term holdings, while others tax capital gains as ordinary income.

Pennsylvania gas tax is 58.7¢/gal — 27.9¢/gal higher than Virginia's 30.8¢/gal. For a 15,000 mile/year driver getting 25 mpg, each 1¢/gal of gas tax = about $6/year.

Pennsylvania allows local income, occupational, or earnings taxes. Earned Income Tax (EIT) of 1%-4% imposed by nearly all municipalities and school districts. Philadelphia 3.75% resident / 3.44% non-resident. Local Services Tax (LST) $52/year for workers in most cities. These are often overlooked but can add 1–3% to your effective rate.

Pennsylvania residency rules: Domicile + 30-day statutory residency + permanent abode. Very strict tests. To establish residency for tax purposes, typical steps include: update driver's license and vehicle registration, register to vote, file a homestead declaration, close home-state bank accounts where possible, and spend clearly more than 183 days in your new state. If your former state is aggressive (e.g., CA, NY, NJ, OR), keep documentation of every day spent in each state.

Pennsylvania recent tax law changes: Flat 3.07% rate unchanged since 2004. Inheritance tax: 0% spouse/minor child, 4.5% lineal descendants, 12% siblings, 15% others. Working Pennsylvanians Tax Credit (up to $805) created in the 2025-26 Pennsylvania budget.

For the most current tax information in Pennsylvania, visit the official source at https://www.pa.gov/en/agencies/revenue.html. Tax laws change annually; verify rates and rules before making a permanent move. Consult a CPA for advice specific to your situation.