HB1742

In personal income tax, further providing for imposition of tax, for when withholding not required, for returns and liability and for return of Pennsylvania S corporation.

Introduced·7/16/25
Introduced Text

Pennsylvania HB1742 amends personal income tax rules, exempting certain taxpayers from withholding and filing requirements starting in 2026.

Pennsylvania HB1742 amends the Tax Reform Code of 1971 to modify personal income tax rules. It exempts employers from withholding tax on wages for employees who certify no tax liability for the current year, effective from 2026. The bill also exempts certain taxpayers from filing personal income tax returns starting from 2026. Additionally, it requires Pennsylvania S corporations to file specific returns detailing income, deductions, and shareholder information, though this requirement is also set to end in 2025. The act takes immediate effect upon enactment.

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Where it stands

Current
Finance Committee
Next
Committee decision

Sponsors

0
8
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Democratic CaucusRepublican Caucus

History

Jul 16, 2025

House

Referred to Finance