Pennsylvania to Reduce Corporate Net Income Tax Rate to 4.99% by 2031
From having the second-highest Corporate Net Income (CNI) tax rate in the country at 9.99%, Pennsylvania will soon have the sixth-lowest by 2031. Beginning January 1, 2023, the new CNI will be 8.99% and will lower by half a percent annually until it reaches 4.99% in 2031.
State Senator Pat Browne stated that “Pennsylvania’s overall business tax climate will soon be the most competitive among our northeastern states and the most competitive in the nation.”
In that same tax code reform package, like-kind exchanges for small businesses to defer personal tax liabilities are now allowed. Pennsylvania was the only state in the country that previously did not offer this type of deferral.
Pennsylvania Chamber of Business and Industry President and CEO Luke Bernstein describes this new reform as a win for the people of Pennsylvania. “Pennsylvania has so much to offer potential investors and entrepreneurs. These tax reforms instantly make us more globally competitive and allow us to focus on Pennsylvania’s strengths as a hub of global commerce and opportunity – our prime location, world-class educational institutions, innovative workforce, and more.”
For more information, please reach out to the professionals at The Center for Financial, Legal, and Tax Planning Inc., at (618) 997-3436 or by visiting our website at www.taxplanning.com.
*Disclaimer – The information in the article above is only for general informational purposes. It is not to be construed as financial, legal, or tax planning advice. Please consult with your financial and/or tax advisor before making any financial decisions. Please consult with your legal representative before making any legal decisions.