PA tax filing for FL property sales

[wendyle1993]

I live in PA and sold a rental residential property located in FL in 2025. Do I need to report that in my PA state tax filing?

[MindyB]

Yes.  As a PA resident, you are required to report the sale of the Florida property on your PA-40 tax return. Pennsylvania taxes residents on their "worldwide income," which includes net gains from the sale of real estate regardless of where the property is located. 

Because Florida does not have a state income tax, you won't be able to claim a "Resident Credit" for taxes paid to another state, meaning the entire gain will be subject to the PA flat tax rate of 3.07%.

[wendyle1993]

Do I also need to report rental profit/loss from Florida as well?

[MindyB]

Yes, you are required to report any rental profit or loss from your Florida property on your Pennsylvania state return for the portion of the 2025 tax year that you owned it.

Because Pennsylvania taxes its residents on their worldwide income, it doesn't matter that the property is physically located in Florida; the net income is still taxable by PA.

[wendyle1993]

Should I split the rental gain/loss and sales gain/loss 50%/50% with my spouse since I am filing married filing separately for PA state tax?

[Vanessa A]

It depends.  If you both owned the home, then yes, you would split the gain/loss 50/50 with your partner.  If the home was solely in your name, then you would report it all on your return.