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, for when withholding not required, for returns and liability and for return of Pennsylvania S corporation.

SB 206 modifies Pennsylvania's personal income tax by setting a 3.07% rate for taxable years ending in 2025, after which no personal income tax will be collected for years beginning in 2026 or later. It also eliminates employer withholding requirements starting in 2026 if employees certify they had no prior-year tax liability and expect none for the current year. Additionally, the bill repeals the requirement for residents to file personal income tax returns and for Pennsylvania S corporations to submit annual returns for taxable years starting in 2026. These changes directly affect Pennsylvania residents, employees, employers, and S corporations.