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, further providing for imposition of tax.

This bill amends Pennsylvania's Tax Reform Code to increase personal income tax rates for taxable years beginning after December 31, 2025. It raises the tax rate for residents and nonresidents from 3.7% to 9.7% on all income, while maintaining a 3.7% rate for specific income categories. The legislation also clarifies how trust income is taxed by aligning Pennsylvania rules with federal Internal Revenue Code provisions regarding grantor trusts.