Pennsylvania Capital Gains Tax Calculator
Pennsylvania taxes capital gains as ordinary income at the state level, which means a gain on selling shares, property or other investments is added to your other income and taxed using the Pennsylvania income tax brackets, with no separate preferential long-term rate like the federal system provides. This calculator estimates the Pennsylvania state tax on a capital gain by stacking the gain on top of your other taxable income and applying the sourced Pennsylvania Department of Revenue brackets for tax year 2025, then taking the difference. Enter your gain, your other annual taxable income and your filing status to see the state tax attributable to the gain and the effective rate on it. The result is the Pennsylvania state portion only; federal capital gains tax, which has separate short-term and long-term rates set by the IRS, is calculated separately. Because the gain stacks on your other income, the same gain is taxed at a higher rate the more you already earn. Some states provide specific exclusions or preferential treatment for certain gains; this tool uses the standard ordinary-income method and links the Pennsylvania Department of Revenue so you can confirm any special rule that applies to you.
Pennsylvania taxes capital gains as ordinary income. A $20,000.00 gain on top of $60,000.00 of other income (single) adds about $614.00 in Pennsylvania state tax, an effective rate on the gain of 3.07%.
How Pennsylvania taxes capital gains
Pennsylvania taxes capital gains as ordinary income, so the gain is added to your other income and taxed at the Pennsylvania bracket rates.
state tax on gain = state income tax on (other income + gain) - state income tax on (other income)
effective rate on gain = state tax on gain / gain x 100
Pennsylvania capital gains tax: frequently asked questions
How are capital gains taxed in Pennsylvania?
Pennsylvania taxes capital gains as ordinary income at the state level: the gain is added to your other taxable income and taxed using the Pennsylvania income tax brackets published by the Pennsylvania Department of Revenue. This calculator applies those brackets to your gain. Some states provide specific exclusions or rates for particular gains; confirm your situation with the Pennsylvania Department of Revenue.
How much state tax will I pay on a $20,000.00 capital gain in Pennsylvania?
Stacked on $60,000.00 of other income, a $20,000.00 gain adds about $614.00 of Pennsylvania state income tax for a single filer, an effective rate on the gain of 3.07%. Your figure depends on your total income and filing status; enter them above.
Does Pennsylvania have a separate long-term capital gains rate?
Most states, including the default treatment here, tax long-term and short-term capital gains at the same ordinary income rates, unlike the federal system which has preferential long-term rates. Any state-specific exclusion or preferential rate is set by the Pennsylvania Department of Revenue; this calculator uses the ordinary income method and links the source.
What is Pennsylvania's income tax rate for 2025?
Pennsylvania applies a flat income tax rate of 3.07% on all taxable income, regardless of filing status or income level. This rate has been in effect since 2004. Source: Pennsylvania Department of Revenue.
Does Pennsylvania have a standard deduction or personal exemption?
No. Pennsylvania does not provide for a standard deduction or personal exemption. This makes Pennsylvania's tax base broader than most states, though the 3.07% rate is among the lowest flat rates in the country. Specific deductions are allowed for items such as Health Savings Account contributions and qualified Section 529 plan contributions. Source: Pennsylvania Department of Revenue.
What types of income does Pennsylvania tax?
Pennsylvania taxes eight classes of income: compensation (wages, salaries, tips), interest, dividends, net business profits, net gains from property sales, net income from rents and royalties, distributable income from estates or trusts, and gambling or lottery winnings. Losses in one class cannot offset income in another. Source: Pennsylvania Department of Revenue.
What is Pennsylvania's Tax Forgiveness program?
Pennsylvania's Tax Forgiveness credit (PA Schedule SP) can reduce or eliminate personal income tax owed by qualifying low-income taxpayers. Eligibility depends on eligibility income and family size. The credit is calculated on Schedule SP and applied directly against the 3.07% tax liability. Source: Pennsylvania Department of Revenue.
Official sources
- Pennsylvania income tax rates applied to capital gains (tax year 2025): Pennsylvania Department of Revenue, as at Jun 12, 2026.
Reviewed by the CalculatorHub team, edited by James Graham, 25 June 2026. See our methodology. General information, not financial or tax advice. State-specific exclusions, if any, are set by the Pennsylvania Department of Revenue.