Pennsylvania has the 10th highest tax burden in the United States.[90] Residents pay a total of $83.7 billion in state and local taxes with a per capita average of $6,640 annually. Residents share 76% of the total tax burden. Many state politicians have tried to increase the share of taxes paid by out of state sources. Suggested revenue sources include taxing natural gas drilling as Pennsylvania is the only state without such a taxation on gas drilling.[91] Additional revenue prospects include trying to place tolls on interstate highways; specifically Interstate 80 which is used heavily by out of state commuters with high maintenance costs.[92]
Sales tax provides 39% of Commonwealth's revenue; personal income tax 34%; motor vehicle taxes about 12%, and taxes on cigarettes and alcohol beverage 5%.[93] Personal income tax is a flat 3.07%. An individual's taxable income is based on the following eight types of income: compensation (salary); interest; dividends; net profits from the operation of a business, profession or farm; net gains or income from the dispositions of property; net gains or income from rents, royalties, patents and copyrights; income derived through estates or trusts; and gambling and lottery winnings (other than Pennsylvania Lottery winnings).[94]
Counties, municipalities, and school districts levy taxes on real estate. In addition, some local bodies assess a wage tax on personal income. Generally, the total wage tax rate is capped at 1% of income but some municipalities with home rule charters may charge more than 1%. Thirty-two of the Commonwealth's sixty-seven counties levy a personal property tax on stocks, bonds, and similar holdings.