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Retirement planning for Pennsylvania.
Flat 3.07%. Run your projection. free
Run your projection — freePennsylvania at a glance (2026)
Top combined rate
40.07%
State tax model
Flat 3.07%
Standard deduction
$16,100
RMD start age
73
No state income tax
Pennsylvania does not levy a state income tax. Your 401(k)/IRA withdrawals, Roth conversions, Social Security, and investment gains are taxed only at federal rates (10-37%).
What this means for your retirement
Pennsylvania retirement planning insights
Pennsylvania does not tax most retirement income — distributions from IRAs, 401(k)s, pensions, and Social Security are all exempt from the 3.07% state flat tax once you reach retirement age
This makes Pennsylvania one of the most tax-friendly states for retirees despite having a state income tax — the exemption on retirement distributions is effectively a 0% state rate on the income that matters most
Pennsylvania's flat 3.07% still applies to earned income, interest, dividends, and capital gains — retirees with significant non-retirement investment portfolios still face state tax on those sources
The combination of retirement income exemption + relatively low property taxes (outside Philadelphia) makes Pennsylvania a hidden gem for tax-efficient retirement, especially for retirees relocating from NY or NJ
Frequently asked questions
› Does Pennsylvania tax 401(k) and IRA withdrawals?
No. Pennsylvania exempts distributions from IRAs, 401(k)s, 403(b)s, and most pensions from state income tax. Social Security is also exempt. This makes PA effectively a 0% state tax state for most retirement income, despite having a 3.07% flat tax on earned income.
› Is Pennsylvania a good state to retire in?
For tax purposes, it's one of the best-kept secrets. The retirement income exemption means most retirees pay zero state income tax. Combined with no sales tax on groceries/clothing and moderate property taxes outside Philly, the total tax burden is very competitive with no-income-tax states like Florida or Texas.
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