PennsylvaniaPennsylvania taxpayers could subtract Trump account contributions from taxable income
For tax years starting in 2027 or later, Pennsylvania taxpayers could deduct Trump account contributions within yearly limits, without reducing taxable income below zero.
What it does
Trump account contributions would be deductible up to the annual federal limit for tax-free gifts per beneficiary, without reducing taxable income below zero. This would apply to tax years starting in 2027 or later.
Argument forFor tax years starting in 2027 or later, the deduction could lower Pennsylvania taxes for account contributors who have taxable income.
Argument againstBecause the deduction cannot reduce taxable income below zero, contributors with little or no taxable income may receive little or no help.
More detail
Taxpayers could subtract Trump account contributions from income on their Pennsylvania personal income tax returns. Accounts must be established under section 530A of federal tax law. The yearly deduction could not exceed the federal limit for tax-free gifts for each named beneficiary. The deduction could not reduce taxable income below zero. The deduction would apply to tax years beginning after December 31, 2026. The act would take effect immediately upon becoming law.
Where do you stand?
Choose your position
Tell your reps
Take a position to see your representatives and ways to contact them.
Where it stands
- Introduced
- Passed House
- Passed Senate
- To Governor
- Became Law
Looking ahead
No hearings or votes scheduled.
History
- 2026
- Oct 28Referred to FinanceIntroduced
Taxes & Budget