PA Has 4th Worst Tax Rate In The Nation, New Study Says

HARRISBURG, PA — The Keystone State is one of the worst states in the nation for taxes and tax policy, according to a new study that pains a grim picture for Pennsylvanians in the weeks approaching the 2023 due date.

The ranking from financial analysts with WalletHub takes into account state and local taxes, as well as various types of taxes, ranging from income tax to real estate and excise taxes.

Pennsylvania came in at 48th overall on the list, which included all 50 states and the District of Columbia. The Keystone State was ahead of only New York, Connecticut, and Illinois. Among the most notable findings: Pennsylvanians are taxed almost 30 percent more than the average American.

The state's effective sales and excise tax of 4.31 percent is 49th overall. The real estate tax isn't much better, as the state's 5.40 rate sits at 40th overall.

Analysts say that recent inflation and lingering economic concerns in a post-pandemic world have made people hyperaware of their bank accounts. It's also put many people who weren't financially vulnerable five years ago in a difficult position.

"Perhaps people feel that a tax break is necessary to lessen the pressures of inflation,” Jill Gonzalez, WalletHub analyst, said in a statement. “Another reason why people think their current tax rate is too high could be that they feel the benefits they receive from the government do not equal the money subtracted from their income. They may also disagree with how their tax dollars are being used or think they are being used inefficiently.”

Wallethub also included an smörgåsbord of eclectic, tax-adjacent statistics along with the study that served as indicators of the modern economic realities most Americans face. Amongst the fundings: apparently 23 percent of people claim that to avoid taxes forever, they would stop speaking for 6 months.

Perhaps even worse, 37 percent of people would get an "IRS" tattoo if it meant they'd never be taxed again.

The study did not note where on the hypothetically untaxed body the IRS tattoo would be located.