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Old 03-31-2011, 04:05 PM
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Smile Is my pension taxable in PA

I am 57 years old and decided to begin receiving my defined benefit pension from my former company. I've worked there 28 years. It's a monthly annuity amount which is the same amount for the rest of my life. I never paid anything into this. It's a company benefit. Will I end up paying PA state taxes on this pension. I know I will have to pay federal taxes.



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Old 03-31-2011, 07:50 PM
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Join Date: Oct 2010
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“Will I end up paying PA state taxes on this pension.”---> Social Security benefits, public and private pensions as well as IRA distributions are all exempt from state income tax in Pennsylvania. Payments received from eligible Pennsylvania retirement plans are nontaxable retirement income. However, if you invested in a retirement annuity that is not part of an employer-sponsored program or a commonly recognized retirement program, you have Pennsylvania taxable income when you begin receiving annuity payments.



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