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 and for requirement of withholding tax.

This bill amends Pennsylvania's personal income tax law to establish a temporary lower tax rate of 2.99% for six months starting in 2026, before reverting to the standard rate of 3.07%. It applies this reduced rate to income earned by residents and nonresidents from sources within the state. Additionally, the legislation requires employers to withhold taxes from employee paychecks in a way that accounts for this temporary rate change. The changes are set to take effect on July 1, 2026, or later if the law is not signed into effect sooner.