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Bill > HB1846


PA HB1846

PA HB1846
In personal income tax, further providing for classes of income.


summary

Introduced
09/09/2025
In Committee
09/09/2025
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 classes of income.

AI Summary

This bill amends the Tax Reform Code of 1971 to exempt compensation earned by individuals under 18 years of age from state personal income tax. Specifically, the legislation adds a new clause to the existing tax law that will make any income received by taxpayers younger than 18 years old non-taxable. The tax exemption will take effect for taxable years beginning after December 31, 2025, meaning the first tax year where this exemption can be applied will be 2026. The bill aims to provide a financial benefit to young workers by allowing them to keep more of their earnings, potentially encouraging youth employment and providing additional income for teenagers and younger workers. The legislation takes effect immediately upon passage, though the actual tax exemption will not be implemented until the start of 2026.

Committee Categories

Budget and Finance

Sponsors (10)

Last Action

Referred to Finance (on 09/09/2025)

bill text


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