Do I have to pay Pennsylvania state tax for my retirement benefits?

by Tami Noll Russo, CPA | Jan 20, 2017

I turned 66 a couple weeks ago, and I am setting plans for retirement. I am filling out my paperwork for Social Security, pension, and an annuity from my company that went bankrupt. My pension was frozen and put into an annuity. Do I pay state income tax on these? 

Pennsylvania does not tax annuity payments generated from pension, IRA, or other qualified sources. In addition, Pennsylvania does not tax Social Security, pension, or other retirement benefits.

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Answered by: Tami Noll Russo, CPA, is a certified financial planner with Noll Financial Services in Middletown, Pa.
The responses are based on the limited information provided by the questioner and apply the laws and regulations at the time of posting. Other options could arise as rules and regulations may change over time, including but not limited to the passage of the Tax Cuts and Jobs Act of 2017. They are intended to provide general information, not specific accounting or tax advice; they are not intended or written to be used and cannot be used for the purpose of avoiding or evading taxes or penalties under the IRS code or regulations. Views expressed do not imply an opinion of the PICPA, its officers, directors, employees, or members.
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