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Bill > HB1742
PA HB1742
PA HB1742In personal income tax, further providing for imposition of tax, for when withholding not required, for returns and liability and for return of Pennsylvania S corporation.
summary
Introduced
07/16/2025
07/16/2025
In Committee
07/16/2025
07/16/2025
Crossed Over
Passed
Dead
Introduced Session
2025-2026 Regular Session
Bill Summary
Amending the act of March 4, 1971 (P.L.6, No.2), entitled "An act relating to tax reform and State taxation by codifying and enumerating certain subjects of taxation and imposing taxes thereon; providing procedures for the payment, collection, administration and enforcement thereof; providing for tax credits in certain cases; conferring powers and imposing duties upon the Department of Revenue, certain employers, fiduciaries, individuals, persons, corporations and other entities; prescribing crimes, offenses and penalties," in personal income tax, further providing for imposition of tax, for when withholding not required, for returns and liability and for return of Pennsylvania S corporation.
AI Summary
This bill proposes significant changes to Pennsylvania's personal income tax regulations, effectively eliminating personal income tax for taxable years beginning on or after January 1, 2026. Specifically, the legislation would repeal the current 3.07% tax rate on resident individuals, estates, and trusts after December 31, 2025, meaning no personal income tax would be imposed from 2026 onward. The bill also removes existing provisions related to tax withholding, such as the previous requirements for employers to withhold taxes based on an employee's tax liability certification. Additionally, the bill modifies reporting requirements for tax returns and Pennsylvania S corporations, stipulating that these reporting obligations will no longer apply to taxable years starting on or after December 31, 2025. These changes represent a substantial shift in Pennsylvania's tax policy, essentially phasing out the state's personal income tax by the beginning of 2026. The bill would take effect immediately upon passage, setting the stage for this significant tax policy transformation.
Committee Categories
Budget and Finance
Sponsors (8)
Stephanie Borowicz (R)*,
Jake Banta (R),
Aaron Bernstine (R),
Charity Grimm Krupa (R),
Joe Hamm (R),
Thomas Kutz (R),
David Rowe (R),
Dave Zimmerman (R),
Last Action
Referred to Finance (on 07/16/2025)
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