Why Pennsylvania?
Pennsylvania’s diverse regions and vibrant economy — ranked the 19th largest in the world — make it a launchpad for businesses across sectors. From robotics and life sciences research centers to thriving hubs of manufacturing and agriculture, Pennsylvania offers prime locations across the state for your business to grow and succeed. Whether you need seamless port access or a deeply skilled talent pool, our business climate provides stability and room for expansion.
We’re not just good for business, we’re ready for action. Pennsylvania has a clear 10-year economic development strategy, with significant investments in infrastructure, workforce training, and site development. Through programs like PA SITES, we are fast-tracking projects to make more industrial and commercial sites shovel-ready — so your business can hit the ground running.
Lower rates and fewer barriers give companies an edge.
Here in Pennsylvania, we’re taking bold steps to boost our tax competitiveness. Cutting the corporate net income tax rate to 4.99% by 2031 is just the tip of the iceberg. Learn why the Keystone State is among the most attractive states to do business
- Reduced Corporate Net Income Tax Rate
- Decreasing 0.5% annually from 7.99% in 2025 to 4.99% in 2031, Pennsylvania’s corporate net income tax rate is becoming one of the most competitive regionally and nationally. Once fully phased down, the rate will be lower than all of our neighboring states, where rates currently range from 6.5% (West Virginia) all the way up to 11.5% (New Jersey).
- Personal Income Tax Rate: 3.07%
- With a flat 3.07% tax that applies to partnerships, LLCs, and S corporations, Pennsylvania is prime for small and medium-sized businesses that operate as pass-through entities. Only two states — Arizona (2.5%) and North Dakota (2.9%) — have lower rates.
- Personal Property Tax: 0%
- Pennsylvania does not tax machinery, equipment, or inventories — a tax imposed in 27 other states. This removes barriers to capital investment and makes business expansion more cost-effective.
- Increasing Allowable NOL Deductions
- The state is increasing allowable Net Operating Loss (NOL) deductions by 10% annually — from 40% in 2025 up to the federal limit of 80% in 2029. This change supports innovation in start-up, technology, and life sciences businesses.
- Broad Sales and Use Tax Exemptions for Manufacturing and R&D
- Pennsylvania offers broad exemptions for manufacturing and R&D-related purchases, reducing acquisition costs and supporting business upgrades.
A 10-year plan for economic growth
Revealed in 2024, Pennsylvania's 10-year Economic Development Strategy is our blueprint for economic growth in the Commonwealth - and we're already acting on it. This strategy charts a path forward as we work to:
- Prioritize economic development investments that capitalize on Pennsylvania’s strengths and result in real opportunities for our businesses, communities, and residents.
- Continue to make government work at the speed of business.
- Open doors of opportunity for all Pennsylvanians, and increase pathways to the workforce.
- Spur innovation
- Build vibrant and resilient regions, where every community flourishes