Pennsylvania · Flat 3.07% income tax, local taxes
CPA, bookkeeping & fractional CFO services in Pennsylvania
Pennsylvania has a flat 3.07% personal income tax, but most residents and workers also pay local earned income tax, and Philadelphia adds its own wage tax and Business Income and Receipts Tax. CPA Torrance is a CPA-led firm based in Torrance, California that provides bookkeeping, tax planning, tax filing and fractional CFO support to Pennsylvania businesses remotely.
- Serving all of Pennsylvania remotely
- Pennsylvania PA-20S/PA-65 and local filings tracked for you
- Monthly reporting included
In short
What local taxes do Pennsylvania businesses pay?
On top of the flat 3.07% state income tax, most Pennsylvania municipalities and school districts charge a local earned income tax on wages and net profits, collected by local tax collectors. Philadelphia has its own wage tax, net profits tax and Business Income and Receipts Tax, and Pittsburgh has local business taxes too. Employers must also withhold local taxes correctly for each worker.
- State income tax
- Flat 3.07%
- State sales tax
- 6% (+1 to 2% local)
- Key business tax
- Local earned income tax, Philadelphia BIRT
- How we serve
- Remotely, statewide
Services in Pennsylvania
What we do for Pennsylvania business owners
From Philadelphia professional firms and Pittsburgh tech companies to Lehigh Valley distributors and Lancaster family businesses, Pennsylvania owners need state and local taxes handled together. We provide monthly bookkeeping, federal and Pennsylvania tax planning, filings and CFO reporting from one coordinated team.
Bookkeeping Services
- Monthly reconciliations in QuickBooks Online
- Pennsylvania sales tax and local tax tracking
- Payroll and contractor payment review
- Monthly profit and loss and balance sheet
- Catch-up and clean-up bookkeeping
Tax Planning & Strategy
- Entity and S corporation review
- Local earned income and BIRT planning
- Federal and state estimated payments
- Multi-state income review
- Year-end tax planning meeting
Tax Filing & Compliance
- Federal business returns (1120, 1120S, 1065)
- Pennsylvania PA-20S/PA-65 and RCT-101 returns
- Owner individual returns
- IRS and state notice help
- Due-date tracking for every filing
Fractional CFO Services
- Cash-flow forecasts
- Budget versus actual reviews
- Margin and pricing analysis
- Lender- and investor-ready reporting
- Growth and hiring plans
Pennsylvania tax planning
Planning around Pennsylvania taxes
Pennsylvania planning blends the flat state rate, local earned income taxes, Philadelphia and Pittsburgh business taxes and federal planning.
Book a 15-min callLocal tax withholding
Each employee may owe a different local earned income tax. We review payroll so withholding matches where they live and work.
Philadelphia BIRT
Philadelphia businesses pay BIRT on gross receipts and net income. We plan it alongside state and federal tax.
Entity choice
Pennsylvania does not always follow federal rules for S corporations and depreciation. We plan both sets of rules.
Who we work with
Pennsylvania industries we serve
We work with owner-led businesses across Pennsylvania, with experience in the industries that drive the state economy.
Healthcare and life sciences
Practices and research companies across the state.
Manufacturing
Job costing and inventory for Pennsylvania makers.
Logistics and distribution
Warehouses along the I-78 and I-81 corridors.
Family businesses
Multi-generation companies planning succession.
E-commerce sellers
Online brands with Pennsylvania sales tax, inventory and multi-channel books.
Professional firms
Consultants, agencies and law firms billing by the hour, project or retainer.
Why Pennsylvania businesses choose CPA Torrance
Areas we cover
Serving businesses across Pennsylvania
Businesses in Philadelphia, Pittsburgh, Allentown, Harrisburg, Erie work in healthcare, manufacturing, education, logistics and energy. CPA Torrance helps Pennsylvania businesses, including those owned from out of state, stay compliant and organized through remote meetings.
- Philadelphia
- Pittsburgh
- Allentown
- Harrisburg
- Erie
- Lancaster
- Reading
- Scranton
- King of Prussia
- Bethlehem
- Video meetings on your schedule
- Secure document portal for statements and returns
- Cloud accounting you can see any time
FAQ
Pennsylvania business tax and accounting questions
Not covered here? A 15-minute call gets you a straight answer for your situation.
What financial services can CPA Torrance provide to Pennsylvania businesses?
We provide monthly bookkeeping, federal and Pennsylvania tax planning, business tax filing and fractional CFO services. Everything runs from one set of books, so your bookkeeper, CPA and CFO advisor work from the same numbers.
What is the Philadelphia BIRT?
The Business Income and Receipts Tax is a Philadelphia tax on businesses based on both gross receipts and net income, with an exemption for some smaller businesses that still have to file.
Does Pennsylvania follow federal depreciation rules?
Not completely. Pennsylvania has its own rules for bonus depreciation and some deductions, so state taxable income can differ from federal.
Who collects local earned income tax?
Local tax collection agencies collect it for each municipality and school district. Self-employed owners file local returns too.
Can CPA Torrance work with Pennsylvania businesses remotely?
Yes. We serve businesses across Pennsylvania, including Philadelphia, Pittsburgh, Allentown, Harrisburg, Erie, Lancaster, Reading, Scranton, King of Prussia and Bethlehem, through video meetings, a secure document portal and cloud accounting you can see any time. Our office is in Torrance, California.
How do I get started?
Book a 15-minute call or request a free financial assessment. We review your books, tax position and systems and recommend the right mix of support for your Pennsylvania business.
Get your Pennsylvania books and taxes in order.
Book a call to review bookkeeping and tax planning for your Pennsylvania business.