The 2023 picture for Pennsylvania residents
In 2023, Pennsylvania residents paid federal ordinary income tax at brackets topping out at 37%, plus Pennsylvania state tax up to 3.07%, plus Medicare (1.45% + 0.9% additional above $200k single MAGI), plus a federal supplemental-withholding layer on RSU-style income.
2023 federal capital gains brackets
In $2023, federal long-term capital gains rates were 0% up to approximately $44,625, 15% up to approximately $492,300, and 20% above. The 3.8% NIIT added for MAGI above $200,000 single, producing a 23.8% top federal rate on long-term equity sales.
Pennsylvania treatment in 2023
Pennsylvania taxed long-term capital gains at ordinary income rates in 2023, up to 3.07%. Combined with the 23.8% federal top, a Pennsylvania-resident equity seller paid approximately 26.9% on peak-bracket gains.
Frequently asked
- What supplemental-wage withholding rate applied to RSU income in Pennsylvania in 2023?
- The federal supplemental-wage withholding rate was 22% on the first $1,000,000 of supplemental wages per calendar year, rising to 37% above that. Pennsylvania state withholding ran up to 3.07% at the top bracket.
- Did Pennsylvania recognize federal QSBS exclusion in 2023?
- Pennsylvania's conformity status varies year by year and by type of taxpayer. As of 2023, most states other than California, New Jersey, Pennsylvania, and Mississippi either conformed fully or partially to Section 1202. Check the 2023 filing instructions for the specific language.
- What was the top federal ordinary bracket in 2023, and how did it apply to Pennsylvania residents?
- The 37% federal ordinary bracket started around $609,350 of taxable income for single filers in 2023. Pennsylvania stacked 3.07% on top of that for high earners, producing a combined top marginal rate of approximately 40.1%.