Pennsylvania LLC Tax Filing: Forms & Rates (2026)

Fact-checked by the LegalGlass editorial team against primary sources · Published Aug 6, 2026 · Last updated Aug 6, 2026

By default a Pennsylvania LLC is a pass-through entity: its profits are not taxed at the entity level but flow to the members, who pay Pennsylvania's flat 3.07% personal income tax. A multi-member LLC files the PA-20S/PA-65 information return by April 15, and there is no LLC franchise tax. Sales tax is 6%, and an LLC that elects C-corporation treatment pays the 7.49% corporate net income tax for 2026.

How a Pennsylvania LLC Is Taxed by Default

Pennsylvania does not impose a separate income tax on the LLC as an entity in its default form. Instead, the LLC's federal tax classification controls, and Pennsylvania follows it. A single-member LLC is a disregarded entity: the owner reports the business's income and expenses directly, and for a Pennsylvania resident that income lands on the PA-40 personal income tax return. A multi-member LLC is taxed as a partnership: the LLC files an information return, but the tax is paid by the members on their share of the profit. Either way, income "passes through" to the owners and is taxed once, at the individual level, at Pennsylvania's flat rate. For the general framework, see the national business tax overview and the Cornell explanation of key terms.

This pass-through treatment is the same reason most owners choose an LLC in the first place. It avoids the two layers of tax that a traditional C corporation faces, while still giving the owners limited liability. If you are still deciding on a structure, compare the options in LLC vs corporation and sole proprietorship vs LLC. To see how the LLC itself is created before any of these tax rules apply, read how to form an LLC in Pennsylvania.

Federal Classification and S-Corp or C-Corp Elections

Because Pennsylvania keys off the federal classification, the first tax decision an LLC makes is a federal one. The IRS default is disregarded (single-member) or partnership (multi-member), but an LLC can elect a different treatment. To be taxed as an S corporation, the LLC files IRS Form 2553; to be taxed as a C corporation, it files IRS Form 8832. An S-corporation election can reduce self-employment tax on the owner's wages-versus-distributions split, while a C-corporation election subjects profits to corporate tax. Weigh these trade-offs in S-corp vs LLC, LLC or S-corp, and LLC vs S-corp tax, and see Form 2553 explained for the S-election mechanics.

Pennsylvania generally recognizes the federal election. A federal S corporation is automatically a Pennsylvania S corporation unless it affirmatively elects not to be, and it files the PA-20S/PA-65. An LLC that elects C-corporation status becomes subject to Pennsylvania's corporate net income tax. Every LLC also needs a federal Employer Identification Number (EIN) before it can file business tax returns, hire employees, or open a bank account; it is free from the IRS. Multi-member LLCs and any LLC with employees are required to obtain one - see how to get an EIN for an LLC.

Pennsylvania Personal Income Tax (3.07%)

Pennsylvania taxes individual income at a flat 3.07% rate - one of the few states with a single flat rate rather than brackets. For a pass-through LLC, this is the rate that applies to each member's distributive share of business profit. A single-member LLC owner reports net profit on Pennsylvania Schedule C (business income) attached to the PA-40, mirroring the federal Schedule C. Members of a multi-member LLC receive a PA-20S/PA-65 Schedule RK-1 (resident) or NRK-1 (nonresident) showing their share, and they carry that figure to their PA-40.

Unlike the federal system, Pennsylvania does not allow the same deductions and loss offsets across classes of income, so the state figure can differ from the federal number. Owners of a pass-through LLC also owe federal self-employment tax on active business earnings, which the 3.07% state tax is separate from. Because Pennsylvania income tax is not withheld from pass-through profit automatically, members with significant income generally make quarterly estimated payments to both the IRS and the Department of Revenue to avoid underpayment penalties.

The PA-20S/PA-65 Information Return

A multi-member Pennsylvania LLC taxed as a partnership, and any LLC taxed as a Pennsylvania S corporation, files the PA-20S/PA-65, the state's information return for pass-through entities. The return itself generally does not pay entity-level income tax; its purpose is to report total income and allocate each owner's share so the members can report it on their own returns. The LLC issues each member a PA-20S/PA-65 Schedule RK-1 (for residents) or NRK-1 (for nonresidents). For calendar-year filers, the PA-20S/PA-65 is due April 15, matching the federal partnership and S-corporation calendar shifted to Pennsylvania's individual deadline. A single-member LLC skips this return entirely and reports on the owner's PA-40. For the federal counterparts, see Form 1120 vs 1120-S vs 1065 and the broader how to file business taxes guide.

No Franchise Tax, but Corporate Net Income Tax if You Elect

Pennsylvania has no LLC franchise tax. The state eliminated its capital stock and foreign franchise tax for tax years beginning in 2016, so a standard pass-through LLC owes nothing to the Commonwealth simply for existing. The only recurring Department of State charge is the $7 annual report; see Pennsylvania annual report and taxes and Pennsylvania LLC cost for how that fits the wider budget.

The one situation that creates an entity-level state income tax is a C-corporation election. An LLC taxed as a C corporation is subject to Pennsylvania's corporate net income tax (CNIT), filed on the RCT-101. Under the rate reduction schedule enacted in 2022, the CNIT rate is stepping down each year: it is 8.49% for 2024, 7.99% for 2025, and 7.49% for 2026, continuing down toward 4.99% by 2031. Most small LLCs do not elect C-corporation status precisely because it introduces this entity-level tax on top of tax on distributions to owners; the analysis is laid out in S-corp vs C-corp and LLC vs corporation.

Pennsylvania Sales and Use Tax (6%)

If a Pennsylvania LLC sells taxable tangible goods or certain services, it must register for a sales tax license, collect tax from customers, and remit it to the Department of Revenue. The Pennsylvania state sales and use tax rate is 6%. Two counties add a local sales tax on top: Allegheny County adds 1% (7% total) and Philadelphia adds 2% (8% total). Sales tax is a trust tax - the LLC collects it on the state's behalf, so it is legally distinct from the LLC's income tax and is not reduced by business losses.

You register for the sales tax license through the Department of Revenue's online portal, myPATH, at no charge for the license itself. Once registered, the LLC is assigned a filing frequency - monthly, quarterly, or semi-annually - based on the volume of tax it collects, and it must file a return for each period even when no tax is due. A business that buys taxable items without paying sales tax (for example, from an out-of-state seller) may also owe use tax at the same rate. For where sales-tax registration fits among other permits, see business licenses in Pennsylvania and the national business license overview.

Employer Withholding, Local Taxes, and Other Filings

An LLC with employees takes on payroll obligations. It must register for employer withholding so it can withhold Pennsylvania personal income tax from wages and remit it on an assigned schedule (typically semi-weekly, semi-monthly, monthly, or quarterly depending on the amount withheld), and it must register for unemployment compensation (UC) tax with the Department of Labor & Industry. Pennsylvania also has extensive local taxes: many municipalities and school districts levy an Earned Income Tax and a Local Services Tax collected through local tax collectors, and Philadelphia imposes its own Business Income and Receipts Tax and Wage Tax that operate separately from the state system. An LLC operating in Philadelphia should confirm those city obligations directly. A single-member LLC with no employees generally has none of these payroll filings, which keeps single-member LLC compliance simple. For the underlying ownership rules that determine who reports what, review your operating agreement.

Tax Deadlines, Forms, and Registration

You register for Pennsylvania business taxes - sales tax, employer withholding, and corporate taxes - through myPATH, the Department of Revenue's online system, which replaced the older PA-100 paper enterprise registration. Registration is free; the taxes themselves are what you pay. The table below summarizes the main returns and deadlines a Pennsylvania LLC may face; the exact forms depend on how the LLC is taxed. Rates and dates are effective for 2026 and set by the state.

Missing a return can trigger penalties and interest from the Department of Revenue, and the $7 annual report has its own separate consequence - administrative dissolution beginning with 2027 filings. Keep the income, sales, and annual-report calendars together so nothing slips; see when business taxes are due for the federal side.

Nonresident Members and Estimated Payments

Pennsylvania taxes nonresidents on income sourced to the state, so an out-of-state member of a Pennsylvania LLC still owes 3.07% on the Pennsylvania-source share of profit. Pass-through entities are generally required to withhold and remit Pennsylvania personal income tax on the PA-source income allocable to nonresident members, reported on the NRK-1, unless an exception applies. Resident members, and the LLC's owners generally, should plan for quarterly estimated payments because pass-through profit is not subject to automatic withholding. If your LLC operates in more than one state, each state where it does business may impose its own filing, so coordinate the Pennsylvania return with any other state's rules. When you eventually wind the business down, close out the tax accounts as part of dissolving the LLC in Pennsylvania.

Frequently Asked Questions

How is a Pennsylvania LLC taxed?

By default it is a pass-through entity: a single-member LLC is disregarded and a multi-member LLC is a partnership, so profits flow to members who pay the flat 3.07% personal income tax. The LLC can elect S-corporation or C-corporation treatment instead.

What tax return does a Pennsylvania LLC file?

A single-member LLC reports on the owner's PA-40. A multi-member LLC or an LLC taxed as an S corporation files the PA-20S/PA-65 and issues RK-1/NRK-1 schedules. An LLC taxed as a C corporation files the RCT-101 corporate net income tax report.

Does a Pennsylvania LLC pay a franchise tax?

No. Pennsylvania eliminated the capital stock and foreign franchise tax for tax years beginning in 2016. A standard LLC pays no franchise tax; the only recurring Department of State charge is the $7 annual report.

Does a Pennsylvania LLC collect sales tax?

If it sells taxable goods or services, yes. Register for a sales tax license through myPATH and collect 6% state tax, plus 1% in Allegheny County or 2% in Philadelphia. Returns are due monthly, quarterly, or semi-annually based on volume.

When are Pennsylvania LLC taxes due?

The PA-40 and PA-20S/PA-65 are due April 15 for calendar-year filers. Corporate net income tax reports are due 30 days after the federal due date. Sales tax and employer withholding follow assigned schedules.

Related

• Business tax (cluster hub)
• How to form an LLC in Pennsylvania
• Pennsylvania annual report and taxes
• Pennsylvania LLC cost and filing fees
• Pennsylvania registered office requirements
• Business licenses in Pennsylvania
• How to dissolve an LLC in Pennsylvania
• S-corp vs LLC
• How to file business taxes

Sources

1. Pennsylvania Department of Revenue - Personal Income Tax (flat 3.07% rate; pass-through treatment of LLCs, partnerships, and S corporations; PA-40).
2. Pennsylvania Department of Revenue - Corporate Net Income Tax (rate reduction schedule: 8.49% for 2024, 7.99% for 2025, 7.49% for 2026; RCT-101).
3. Pennsylvania Department of Revenue - Capital Stock and Foreign Franchise Taxes (eliminated for tax years beginning in 2016).
4. Pennsylvania Department of Revenue - Sales, Use and Hotel Occupancy Tax (6% state rate; 1% Allegheny; 2% Philadelphia; license registration).
5. Pennsylvania Department of Revenue - Partnerships, S Corporations, and LLCs (PA-20S/PA-65 information return; RK-1/NRK-1 schedules).
6. Pennsylvania Department of Revenue - Employer Withholding (withholding registration and remittance schedules).
7. Pennsylvania Department of Revenue - myPATH (online business tax registration and filing portal).
8. Pennsylvania Department of State - Annual Reports ($7 LLC annual report; September 30 deadline; administrative dissolution begins with 2027 filings).
9. IRS - Limited Liability Company (LLC) (default classification: disregarded entity / partnership).
10. IRS - S Corporations (S-corp status and pass-through reporting).
11. IRS - About Form 2553, Election by a Small Business Corporation (S-corp election).
12. IRS - About Form 8832, Entity Classification Election (electing corporate treatment).
13. IRS - Get an Employer Identification Number (free EIN).
14. IRS - Self-Employment Tax (Social Security and Medicare on active earnings).
15. Cornell Law School, Legal Information Institute - Pass-through taxation.
16. Cornell Law School, Legal Information Institute - Limited Liability Company (LLC).
17. Justia - 15 Pa.C.S. Chapter 88, Limited Liability Companies.

LegalGlass provides general information for educational purposes and is not a law firm or a substitute for advice from a licensed attorney or tax professional. Laws, fees, rates, and thresholds change; verify current requirements with the Pennsylvania Department of Revenue, the Pennsylvania Department of State, and the IRS before acting.