The short version
- Social Security taxed?
- No
- Income tax
- Flat 3.07%
- Property tax on a $300,000 home
- ≈ $3,780 / yr ($315 / mo)
- Everyday cost index (U.S. = 100)
- 97
- January / July high
- 41°F / 87°F
- Sales tax (state + local avg)
- 6.34%
Retiring in Pennsylvania
One of the most retiree-friendly tax codes anywhere — no state tax on Social Security, pensions, or IRA withdrawals. Watch out: property taxes and the inheritance tax.
How Pennsylvania taxes your retirement income
Social Security: not taxed at all.
Pensions: All pension income exempt once you meet your plan's retirement requirements.
401(k) and IRA withdrawals: 401(k)/IRA withdrawals exempt after retirement age.
The setup: Flat 3.07%.
Property tax & senior breaks
The average effective property tax rate is about 1.26% — roughly $3,780 a year ($315 a month) on a $300,000 home. Your county sets the real number.
Help for seniors: Property tax/rent rebate of up to $1,000 for homeowners 65+ with income under about $46,000.
Try your own home value in the Property Tax Estimator.
Everyday costs & sales tax
Overall cost of living runs about 3% below the U.S. average. The combined state and average local sales tax is 6.34%.
Weather
January days top out around 41°F and July days around 87°F, with roughly 207 sunny days a year. Watch out for: Snowy winters and flooding.
Healthcare
Top systems in Philadelphia (Penn) and Pittsburgh (UPMC).
Estate & inheritance taxes
Pennsylvania has an inheritance tax. Inheritance tax: 0% spouses, 4.5% children, 12% siblings, 15% others