Can it be right that PA does not allow any of the deductions that were allowed on the federal return?

[SweetieJean · Accepted solution]

Yes.  PA has a single, flat rate tax; and virtually no deductions or credits.

If your PA state income is solely or mostly wages, you usually breakeven at tax time.

[eiversen]

Yes, I've learned that only HSA's, MSA's, and 529's count as deductible expenses in PA. Two years paying taxes in PA has been quite an experience in bizarro policies.

[SweetieJean]

Yeah, but the PA tax rate is only slightly above 3%.