An Act amending the act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971, in personal income tax, further providing for imposition of tax.
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Progress
Where this bill stands in the legislative process.
- Introduced
- Passed House
- Passed Senate
- To Governor
- Became Law
Overview
This bill amends the Pennsylvania Personal Income Tax Act, specifically section 302, which outlines the tax rates for different income classes. It adjusts the tax rates for both resident and nonresident individuals, estates, and trusts, with changes taking effect beginning in 2026. The bill also clarifies how income received by trusts is taxed, considering the grantor's relationship to the trust under federal tax law.
Key provisions
- Increases the tax rate for resident individuals, estates, and trusts on certain income classes to 9% starting in 2026.
- Increases the tax rate for nonresident individuals, estates, and trusts on income sourced within Pennsylvania to 9% starting in 2026.
- Specifies a lower tax rate of 3.7% for certain income classes received by resident trusts and nonresident trusts sourced within Pennsylvania, effective in 2026.
- Clarifies the taxation of trust income based on the grantor's status under the Internal Revenue Code.
- Adjusts the effective date for the changes to the tax rates.
- Modifies section 302 of the Tax Reform Code of 1971.
Who is affected
- Residents of Pennsylvania
- Nonresidents of Pennsylvania earning income within Pennsylvania
- Estates
- Trusts
Notable changes
- Changes the tax rates for both resident and nonresident income.
Bill text
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Document of record
- Version
- Pn 3070 Html
- Published
- Not published in the source record
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Sponsors
Official sponsors from legislative records.
9 on record
Primary sponsor
Cosponsors
Christopher Rabb
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