In PA is the Federal gov. still taxing Social security?

1. Pennsylvania’s stance — no state tax on Social Security

Pennsylvania is consistently reported as one of the states that exempts Social Security retirement benefits from state income tax, and multiple state- and retirement-focused sources confirm that residents do not pay state tax on Social Security payments (SmartAsset, AARP, Kiplinger, actsretirement) ^{[1] [2] [4] [5]}. This exemption also extends in Pennsylvania to many other retirement incomes for older residents, which is why the state is commonly described as “retiree-friendly” on tax treatment of benefits ^{[1] [4]}.

2. Federal taxation — conditional and long-established

At the federal level, Social Security benefits have been subject to income taxation since the early 1980s and current federal rules allow up to 85% of benefits to be included in taxable income when a beneficiary’s provisional income exceeds certain thresholds (Investopedia summary; SSA provisions context) ^{[6] [7]}. Federal taxation is determined by “provisional income” (half of Social Security benefits plus other taxable income and tax-exempt interest) and if that measure exceeds $34,000 for individuals or $44,000 for couples, up to 85% of benefits can be taxed; lower provisional-income amounts trigger smaller taxable proportions (AARP summary) ^[2].

3. Payroll taxes remain separate — FICA still applies to wages

The payroll-side Social Security tax (FICA) — the deduction taken from wages during employment that funds the program — continues to be collected at established rates; employee and employer portions remain in place and are separate from the federal income tax treatment of retirement benefits (University of Pennsylvania Division of Finance summary) ^[3]. In short: paying Social Security taxes while working is distinct from whether the benefit check received in retirement is subject to federal income tax.

4. Recent and proposed changes — watch the policy landscape

Policy changes and tax-law packages can alter how much of benefits are taxable; the SSA documents provisions that could revise benefit taxation rules and fiscal analyses prepared for solvency debates list options for changing those rules ^[7]. Some recent federal legislation and commentary—summarized by practitioners and commentators in Pennsylvania—suggests expanded standard deductions or targeted relief could reduce or eliminate federal tax for many retirees under certain income thresholds, but those analyses depend on specific provisions and individual circumstances ^[8]. The presence of these proposals means the taxable share for some beneficiaries could shift, but authoritative federal guidance and enacted law are the deciding factors.

5. Practical takeaway for Pennsylvania beneficiaries

For Pennsylvania residents the bottom line is clear: the Commonwealth will not add a state tax on Social Security benefits, but many beneficiaries still must evaluate federal tax rules because a portion of benefits can be federally taxable depending on other income and provisional income thresholds ^{[1] [2]}. Those who are working, drawing significant pension or investment income, or who fall within the provisional income thresholds should calculate federal taxable portions or consult a tax professional; state-level filing in Pennsylvania will generally not include Social Security income ^{[2] [9]}.

Limitations: the available documents summarize current rules, state practice, and proposals but do not provide every individual scenario; readers should consult the Social Security Administration, IRS guidance, or a tax advisor for calculations specific to a given year and household income ^{[7] [2]}.