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Pennsylvania · 2027 and beyond
Pennsylvania in 2027 and beyond: what is already law, and what is still open
No tax question on the ballot. The rate stays 3.07%; the estimated-payment threshold keeps rising. What is on the 2026 return, what starts with tax year 2027, and what is scheduled or conditional after that.
By Charles Trautman, EA, editor
Need to Know Tax · written from Pennsylvania Department of Revenue sources and the unofficial November 3 election returns, November 12, 2026 · not yet reviewed by a Pennsylvania practitioner
No tax question on the ballot. The rate stays 3.07%; the estimated-payment threshold keeps rising. This page keeps apart three things that get mixed together in the news: what is on the 2026 return you file in early 2027, what begins with tax year 2027, and what is scheduled, conditional or still undecided after that. Election figures are the unofficial November 3, 2026 returns and are not final until the state certifies them.
What the voters decided on November 3, 2026
No statewide tax measure was on the November 3, 2026 ballot in Pennsylvania. Nothing voted on that day changes a Pennsylvania return.
This return, next year, and later
| When | What applies |
|---|---|
| The 2026 return, filed in early 2027 | The rate is 3.07% on every class of income. |
| The Working Pennsylvanians Tax Credit is 10% of the federal earned income credit. | |
| Pennsylvania taxes tips and overtime in full; it has its own income classes and no federal starting point. | |
| Starting with tax year 2027 | The income threshold for estimated payments rises to $17,000. |
| 2028 and later, or conditional | The estimated-payment threshold rises to $20,000 for 2028. |
Items under 2027 and later do not change the 2026 return. They matter for 2027 withholding, estimated payments and planning. The detail behind each line is in the other Pennsylvania articles.
The 2025 federal law and the Pennsylvania return
Pennsylvania does not start from federal AGI or taxable income. Its constitution requires uniform taxation, which is why there is one rate and no standard deduction, and why federal deductions have nowhere to land.
That is the reason a change on the federal return, such as the deductions for tips, overtime and people 65 and older, may or may not show up on the Pennsylvania return. The federal side is in The new deductions for tips, overtime and seniors.
What to watch
The budget due by June 30, 2027. When something on this page changes, the change is logged on the updates page with its date.
What to bring
- Your 2026 federal and Pennsylvania returns, once filed, to set 2027 withholding and estimated payments against them
- Your last pay stub of 2026 and the first of 2027, to see whether withholding changed
- Any notice from the state about a 2027 rate, credit or filing change
Questions people ask
Does anything here change the Pennsylvania return I file in early 2027?
Only what is listed under the 2026 return. Everything listed under 2027 or later affects withholding, estimated payments and planning, not the return for 2026.
How will I know if this page changes?
Every change is logged on the updates page with its date and the article it affects. State legislatures meet in early 2027 and some act before the filing deadline.
Pennsylvania, after the election
No tax question on the ballot. The rate stays 3.07%; the estimated-payment threshold keeps rising.
Written by Charles Trautman, EA, editor · Need to Know Tax, Lone Tree, Colorado
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Sources and where to check
- Department of Revenue: Tax Cuts and Jobs Act / One Big Beautiful Bill Act guidance, provision by provision
- Department of Revenue: DFO-02 Personal Income Tax Preparation Guide, What’s New for 2025
- Department of Revenue: 2026 REV-413(I), the $14,000 threshold and the electronic-payment rule
- Department of Revenue: Working Pennsylvanians Tax Credit
- Department of Revenue: Tax Rates (personal income, inheritance, sales, corporate)
- City of Philadelphia: Wage Tax rates by effective date
- City of Philadelphia: School Income Tax
- SB 1255 (tips) bill status
- HB 1586 (overtime) bill status