PA
Static Conformity — Needs Legislation
3.07%
Top state income tax rate
medium
SALT deduction impact
OBBBA in Pennsylvania: What You Need to Know
Pennsylvania uses static conformity with a flat 3.07% rate. State must legislate to adopt OBBBA provisions. Low rate means state conformity gap is less impactful.
OBBBA Provision Impact for Pennsylvania Residents
| OBBBA Provision | Federal Impact | PA State Impact |
|---|---|---|
| Tip Income Exemption ($25k) | ✅ Exempt from federal income tax | ⚠️ Still taxed at 3.07% until state acts |
| Overtime Exemption | ✅ All OT exempt from federal tax | ⚠️ Still taxed at state level |
| SALT Cap ($40k married) | ✅ Deduct up to $40k on federal return | 🟡 Moderate benefit |
| Child Tax Credit ($2,500) | ✅ Federal CTC expanded | No direct state effect |
| Senior Deduction ($4,000) | ✅ Additional $4k deduction | ⚠️ Likely not adopted |
| Trump Accounts | ✅ $1,000 federal seed + tax-free growth | Federal program — state tax treatment varies |
Calculate Your Pennsylvania Tax Savings
Enter your income, tips, overtime, and family details to see your federal OBBBA savings.
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