PA.gov Skip Navigation
Go

TAXES ON BENEFITS


Do I have to pay taxes on my benefits?

Unemployment benefits are considered gross income on your federal income tax return. You may choose to have Federal Income Tax withheld from your UC benefit payments at the rate of 10 percent of your weekly benefit rate plus the allowance for dependents (if any). You do not have to pay state income tax on unemployment benefits.
 
 
PA Department of Labor and Industry