Students interested in this college are also interested in: Colorado State University, University of Washington, University of California, Berkeley, University of Oregon, University of California, Los Angeles, University of California, Santa Barbara. Overview.
These plans areexcluded from tax on your federal return, but not onyour state income tax return. Once you retire and beginto receive pension benefits, you will pay federal tax onyour retirement payments, but you will not pay PA taxon those benefits.
Pennsylvania's state income tax is fairly low at a flat rate of 3.07 percent, and retirement income isn't taxed - which is a nice break for seniors. Property taxes can be high in some areas, however, and taxes levied on gasoline and cigarettes are among the highest in the nation.