Filing Your Corporate Net Income Tax Report Online
File your RCT-101, PA Corporate Net Income Tax Report, schedules and payments electronically through the Modernized e-File (MeF) platform provided by the Internal Revenue Service, also known as Fed/State e-File. A list of software developers and products approved by the Pennsylvania Department of Revenue to electronically prepare and file the RCT-101, forms and schedules, can be found on the department’s website.
Overview
This tax is levied on federal taxable income as reported on line 28 of the Federal Form 1120 and modified by certain additions and subtractions. For tax years beginning January 1, 1995, through December 31, 2022, a tax rate of 9.99 percent is in effect. The following rate reduction schedule applies to subsequent tax years.
| January 1, 2023 through December 31, 2023 | 8.99 percent |
| January 1, 2024 through December 31, 2024 | 8.49 percent |
| January 1, 2025 through December 31, 2025 | 7.99 percent |
| January 1, 2026 through December 31, 2026 | 7.49 percent |
| January 1, 2027 through December 31, 2027 | 6.99 percent |
| January 1, 2028 through December 31, 2028 | 6.49 percent |
| January 1, 2029 through December 31, 2029 | 5.99 percent |
| January 1, 2030 through December 31, 2030 | 5.49 percent |
| January 1, 2031 and each taxable year thereafter | 4.99 percent |
Entities exempt from the corporate net income tax include certain qualifying:
- not-for-profit organizations
- homeowners’ associations
- membership organizations
- agricultural cooperatives
- business trusts
- non-PA companies that limit business activity to solicitation of sales of tangible personal property in PA
Further, corporations subject to bank and trust companies shares tax, mutual thrift tax, and title insurance company shares tax are exempt from corporate net income tax.
Any entity classified as a corporation for federal income tax purposes is considered a corporation in Pennsylvania. For detailed and historic Pennsylvania corporate net income tax information, please review the Tax Compendium.
Taxpayers subject to the corporate net income tax may also be subject to the gross receipts tax, surplus lines agent tax, and/or the gross premiums tax for premiums paid to unauthorized foreign insurance companies.