What the PA-40 is

The PA-40 is Pennsylvania's individual income tax return. It computes your PA tax on the eight classes of income Pennsylvania taxes, applies the flat rate, subtracts credits (including the Tax Forgiveness Credit on Schedule SP), and either generates a refund or a balance due.

Pennsylvania's personal income tax rate has long been a flat 3.07% — there are no brackets. The simplicity ends there: Pennsylvania's eight-class system means each kind of income is reported and computed separately, with its own rules for what counts as taxable.

Filing options — myPATH, e-file, paper

Four practical ways to file a PA-40:

  1. myPATH.The PA Department of Revenue's official online portal. Free for eligible filers. Handles most schedules.
  2. Tax software (TurboTax, H&R Block, FreeTaxUSA, etc.). Most major packages support PA e-filing. Some charge for the state return.
  3. Paid preparer. A PA-licensed CPA, enrolled agent, or tax preparer can prepare and e-file on your behalf. See our guide to finding a PA tax professional.
  4. Paper. Print the PA-40 from the Department of Revenue website, complete it by hand, and mail. Slower refund turnaround than e-filing.

Deadline and extensions

PA grants an automatic extension to October 15 whenever you file federal Form 4868. No separate PA action is required in that case. If you don't need a federal extension but need extra time for PA only, file PA Form REV-276. Either way, an extension extends time to file, not time to pay. Pay any PA tax you expect to owe by April 15 to avoid interest.

PA's eight classes of taxable income

Pennsylvania taxes the following eight classes of income. Each is computed and reported separately on the PA-40:

  1. Compensation (wages, salary, tips).
  2. Interest income.
  3. Dividend income.
  4. Net profits from a business, profession, or farm.
  5. Net gains from the sale, exchange, or disposition of property.
  6. Net gains or income from rents, royalties, patents, and copyrights.
  7. Income from estates or trusts.
  8. Gambling and lottery winnings (other than PA Lottery).

PA does not allow losses in one class to offset gains in another class. That separation is one of the most common surprises for new PA filers.

The schedules you'll usually attach

The most commonly required PA-40 schedules:

  • Schedule A — interest income
  • Schedule B — dividend income
  • Schedule C — profit/loss from business or profession
  • Schedule D — sale, exchange, or disposition of property
  • Schedule E — rents, royalties, patents, copyrights
  • Schedule J — income from estates or trusts
  • Schedule SP — Tax Forgiveness Credit
  • Schedule T — gambling and lottery winnings
  • Schedule UE — allowable employee business expenses

Check eligibility for the Tax Forgiveness Credit

Before sending in the PA-40, check Schedule SP. The Tax Forgiveness Credit refunds part or all of PA income tax for eligible filers based on eligibility income, a broader measurement than taxable income. Many eligible filers — especially retirees, students, and single parents — never claim it. See our Tax Forgiveness Credit guide for who qualifies and how the sliding scale works.

Refunds and direct deposit

E-filed PA returns with direct deposit are typically the fastest path to a refund. Paper returns and paper checks are noticeably slower. Refund status can be checked through myPATH. See our PA tax refund guide for typical timing and common reasons for delays.

Common PA-40 mistakes

  • Treating federal taxable income as the PA taxable income — the two are computed separately.
  • Forgetting to attach Schedule SP and missing the Tax Forgiveness Credit.
  • Filing only the federal return and assuming PA is handled.
  • Letting losses in one PA class offset gains in another — PA doesn't allow it.
  • Missing PA-source income reporting as a nonresident or part-year resident.