Pennsylvania legislation · 2025-2026 Regular Session
Pennsylvania HB2511: An Act amending the act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971, in personal income tax, providing for exemption from tax for early withdrawals from certain accounts.
Status: In committee, May 13, 2026
What the bill says
An act relating to tax reform and State taxation by codifying and enumerating certain subjects of taxation and imposing taxes thereon; providing procedures for the payment, collection, administration and enforcement thereof; providing for tax credits in certain cases; conferring powers and imposing duties upon the Department of Revenue, certain employers, fiduciaries, individuals, persons, corporations and other entities; prescribing crimes, offenses and penalties," in personal income tax, providing for exemption from tax for early withdrawals from certain accounts.
From the introduced text, May 13, 2026:
An act relating to tax reform and State taxation by codifying and enumerating certain subjects of taxation and imposing taxes thereon; providing procedures for the payment, collection, administration and enforcement thereof; providing for tax credits in certain cases; conferring powers and imposing duties upon the Department of Revenue, certain employers, fiduciaries, individuals, persons, corporations and other entities; prescribing crimes, offenses and penalties," in personal income tax, providing for exemption from tax for early withdrawals from certain accounts. The General Assembly of the Commonwealth of Pennsylvania hereby enacts as follows: Section 1. The act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971, is amended by adding a section to read: Section 304.3. Exception from tax for early withdrawals from certain accounts.--(a) In accordance with the current tax exemption by the Federal Government, the following shall be exempt from taxation as personal income in this Commonwealth, to the limits under subsection (b): (1) Expenses related to the birth or adoption of a child. (2) The purchase of a house by a first time homebuyer. (b) The following amounts shall be excluded from tax: (1) Each parent may withdraw up to five thousand dollars ($5,000) individually for each child born or adopted. (2) The parents may withdraw up to ten thousand dollars ($10,000) together for each child …