Updated October 24, 2026. Quick answer: Lines 11 and 12 of the Pennsylvania PA-40 turn your total taxable income into your Pennsylvania tax. Line 11 subtracts Line 10 from Line 9, and Line 12 multiplies the result by 3.07 percent. Every filer of the PA-40 reaches these two lines, and Line 12 is carried into the payments and credits comparison further down the form.
What this line does
The form labels line 11 “Adjusted PA Taxable Income. Subtract Line 10 from Line 9.” and line 12 “PA Tax Liability. Multiply Line 11 by 3.07 percent (0.0307).”. Line 11 is printed on the first page of the form and line 12 on the second. The booklet places the two instructions together, under the headings “LINE 11. ADJUSTED PA TAXABLE INCOME” and “LINE 12. PA TAX LIABILITY”.
These lines are part of Pennsylvania Form PA-40 line by line, and they follow the page on line 10 of the PA-40.
Who it applies to
Both lines follow from Lines 9 and 10 on the same return. Each instruction is a single sentence, and the sentences are in the table below.
What the instructions say
| Line | What the form says |
|---|---|
| Line 11, the form | “Adjusted PA Taxable Income. Subtract Line 10 from Line 9.” |
| Line 11, the booklet | “Subtract Line 10 from Line 9.” |
| Line 12, the form | “PA Tax Liability. Multiply Line 11 by 3.07 percent (0.0307).” |
| Line 12, the booklet | “Multiply Line 11 by 3.07 percent (0.0307).” |
| Booklet headings | “LINE 11. ADJUSTED PA TAXABLE INCOME” and “LINE 12. PA TAX LIABILITY” |
The figures the form prints
The rate is printed inside the running sentence for line 12: “Multiply Line 11 by 3.07 percent (0.0307).” The same sentence appears on the form itself, quoted in the table above.
Where the result goes next
The form’s line 24 reads “TOTAL PAYMENTS and CREDITS. Add Lines 13, 18, 21, 22, and 23.”, and the line 26 label refers back to this one: “If the total of Line 12 and Line 25 is more than Line 24”. The payments side of that comparison starts with lines 13 to 17 of the PA-40. For the state rate in context, see Pennsylvania tax brackets and Pennsylvania retirement taxes. The federal counterparts of these steps are Form 1040 lines 14 and 15 and Form 1040 line 16.
A worked example
Illustration, not a state example. The Line 9 and Line 10 amounts below are invented. The arithmetic follows the form’s own instruction: Line 11 is Line 9 minus Line 10, and Line 12 is Line 11 times 0.0307. No rounding step is stated in the sentences quoted on this page, so the result is shown to the cent.
| Line | Step | Amount |
|---|---|---|
| Line 9 | Invented Line 9 amount | $40,000 (invented, for the computation) |
| Line 10 | Invented Line 10 amount | $5,000 (invented, for the computation) |
| Line 11 | Line 9 minus Line 10 | $35,000 (computed) |
| Line 12 | Line 11 times 0.0307 | $1,074.50 (computed) |
Edition and line numbers
This page reads 2025 PA Personal Income Tax Return Instructions (PA-40 IN), Pennsylvania Department of Revenue, and 2025 Form PA-40, Pennsylvania Income Tax Return, Pennsylvania Department of Revenue, for tax year 2025, the current files the Pennsylvania Department of Revenue served on 2026-10-24. Check the edition printed on your own form and use that edition’s line numbers.
Common mistakes
- Starting from the wrong line. The form says “Subtract Line 10 from Line 9.”
- Using a rate other than the one printed. The form says “Multiply Line 11 by 3.07 percent (0.0307).”
- Skipping Line 11 and multiplying Line 9 directly. The form’s line 12 label reads “Multiply Line 11 by 3.07 percent (0.0307).”
Related: Pennsylvania tax brackets, Pennsylvania retirement taxes, Form 1040 line 16, and Form 1040 lines 14 and 15.
Find the right next step for your situation
About how much do you have invested? Pick the range that fits; your next step appears immediately below.
Talk to an advisor about retirement tax planning
For U.S. investors with $250,000 or more in investable assets. WiserAdvisor is an independent service matching you with 2 to 3 vetted advisers. Its form asks for your ZIP code and answers to a few questions; a match is not guaranteed.
Free to request, with no obligation to hire. By submitting, you consent to calls, texts and emails from WiserAdvisor and up to three advisers. Advisers pay for introductions.
Clear Money Guide may earn a referral payment for a qualifying completed form. An introduction is not a Clear Money Guide recommendation.
Opens on WiserAdvisor’s site in a new tab.
Explore advisor help with retirement income taxes
Price the destination before you decide. The matching service below introduces you to advisers who pay to meet you.
Before you start, what actually happens. The form is run by Kapitalwise, our advisor-matching partner. Kapitalwise sends your details to advisers who pay for the introduction, so expect calls and texts. Clear Money Guide may earn a referral payment for a qualifying submitted form, whether or not you ever hire anyone. This is free to you and there is no obligation to hire anyone.
The Kapitalwise form opens here; you stay on this page.
What happens when you press the button
It asks about nine questions: age, investable assets, location; then your name, email and phone number, and verifies the phone by text. Nothing loads and nothing reaches Kapitalwise until you press the button.
Prefer flat-fee or hourly pricing instead? Compare ranges here.
Answer againSources
- 2025 PA Personal Income Tax Return Instructions (PA-40 IN), Pennsylvania Department of Revenue: www.pa.gov
- 2025 Form PA-40, Pennsylvania Income Tax Return, Pennsylvania Department of Revenue: www.pa.gov
- Related official page (not quoted): Pennsylvania Department of Revenue, personal income tax forms and publications: www.pa.gov
Read from the state revenue documents linked above on October 24, 2026. General information, not tax advice. Your own facts decide the outcome, and a preparer or the state revenue department is the right place to confirm anything consequential.