HB 141 — An Act amending the act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971, in personal income tax, further providing for imposition of tax.

PRINTER'S NO.   3070

                     THE GENERAL ASSEMBLY OF PENNSYLVANIA



                         HOUSE BILL
                         No. 141
                                                  Session of
                                                    2026

     INTRODUCED BY KRAJEWSKI, RABB, WAXMAN, BRIGGS, CURRY, BURGOS,
        HOHENSTEIN, FIEDLER, BOROWSKI, INGLIS, BOYD, CEPEDA-FREYTIZ,
        SMITH-WADE-EL, KENYATTA, RIVERA, FLEMING, KHAN, GREEN, MAYES,
        PROBST, O'MARA, GIRAL, TAKAC, SHUSTERMAN, WEBSTER, CARROLL,
        PIELLI, KAZEEM, MADSEN AND HOWARD, MARCH 24, 2026

     REFERRED TO COMMITTEE ON FINANCE, MARCH 24, 2026


                                    AN ACT
 1   Amending the act of March 4, 1971 (P.L.6, No.2), entitled "An
 2      act relating to tax reform and State taxation by codifying
 3      and enumerating certain subjects of taxation and imposing
 4      taxes thereon; providing procedures for the payment,
 5      collection, administration and enforcement thereof; providing
 6      for tax credits in certain cases; conferring powers and
 7      imposing duties upon the Department of Revenue, certain
 8      employers, fiduciaries, individuals, persons, corporations
 9      and other entities; prescribing crimes, offenses and
10      penalties," in personal income tax, further providing for
11      imposition of tax.
12      The General Assembly of the Commonwealth of Pennsylvania
13   hereby enacts as follows:
14      Section 1.    Section 302 of the act of March 4, 1971 (P.L.6,
15   No.2), known as the Tax Reform Code of 1971, is amended to read:
16      Section 302.    Imposition of Tax.--(a)     Except as provided in
17   subsection (c)[, every]:
18      (1)   Every resident individual, estate or trust shall be
19   subject to, and shall pay for the privilege of receiving each of
20   the classes of income hereinafter enumerated in section 303, a
21   tax upon each dollar of income received by that resident during
 1   that resident's taxable year at the rate of three and seven
 2   hundredths per cent. This paragraph shall not apply to taxable
 3   years commencing after December 31, 2025.
 4      (2)   Except as provided in paragraph (3), every resident
 5   individual, estate or trust shall be subject to, and shall pay
 6   for the privilege of receiving each of the classes of income
 7   hereinafter enumerated in section 303, a tax upon each dollar of
 8   income received by that resident during that resident's taxable
 9   year at the rate of nine and seven hundredths per cent. This
10   paragraph shall apply to taxable years commencing after December
11   31, 2025.
12      (3)   Every resident individual, estate or trust shall be
13   subject to, and shall pay for the privilege of receiving each of
14   the classes of income hereinafter enumerated in section 303(a)
15   (1), (2) and (4), a tax upon each dollar of income received by
16   that resident during that resident's taxable year at the rate of
17   three and seven hundredths per cent. This paragraph shall apply
18   to taxable years commencing after December 31, 2025.
19      (b)   Except as provided in subsection (c)[, every]:
20      (1)   Every nonresident individual, estate or trust shall be
21   subject to, and shall pay for the privilege of receiving each of
22   the classes of income hereinafter enumerated in section 303 from
23   sources within this Commonwealth, a tax upon each dollar of
24   income received by that nonresident during that nonresident's
25   taxable year at the rate of three and seven hundredths per cent.
26   This paragraph shall not apply to taxable years commencing after
27   December 31, 2025.
28      (2)   Except as provided in paragraph (3), every nonresident
29   individual, estate or trust shall be subject to, and shall pay
30   for the privilege of receiving each of the classes of income

20260HB0141PN3070                  - 2 -
 1   hereinafter enumerated in section 303, a tax upon each dollar of
 2   income received by that nonresident during that nonresident's
 3   taxable year at the rate of nine and seven hundredths per cent.
 4   This paragraph shall apply to taxable years commencing after
 5   December 31, 2025.
 6      (3)   Every nonresident individual, estate or trust shall be
 7   subject to, and shall pay for the privilege of receiving each of
 8   the classes of income hereinafter enumerated in section 303(a)
 9   (1), (2) and (4), a tax upon each dollar of income received by
10   that nonresident during that nonresident's taxable year at the
11   rate of three and seven hundredths per cent. This paragraph
12   shall apply to taxable years commencing after December 31, 2025.
13      (c)   The classes of income under section 303 received by a
14   resident trust, and the classes of income received by a
15   nonresident trust from sources within this Commonwealth, shall
16   be taxable to the grantor of the trust or another person to the
17   extent the grantor or other person is treated as the owner of
18   the trust under sections 671, 672, 673, 674, 675, 676, 677, 678
19   and 679 of the Internal Revenue Code of 1986 (Public Law 99-514,
20   26 U.S.C. § 1 et seq.), as amended, whether or not [such] the
21   income is distributed or distributable to the beneficiaries of
22   the trust or accumulated.
23      Section 2.   This act shall take effect immediately.




20260HB0141PN3070                  - 3 -