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Personal income tax. Pennsylvania has a flat tax rate of 3.07% on individual income, with no personal exemptions.
Ten states with the lowest personal income tax rates. Tennessee and New Hampshire limit their tax to interest and dividend income, not income from wages. Among the states that tax income, Pennsylvania's 3.07 percent flat tax ranks the Keystone State as the tenth lowest in the nation, according to the FTA's 2015 list. Low personal income tax rates can be misleading; a lack of exemptions and deductions can raise the effective rate you pay.