“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. |