TIN ComplianceA resource from TIN Comply
Backup withholding
No
Nonresident payments
Yes, 3.07%
Threshold
$5,000
State withholding

Pennsylvania backup withholding and nonresident contractor withholding

Pennsylvania’s Act 43 of 2017 (72 P.S. 7324.4) requires withholding at the 3.07 percent personal income tax rate on Pennsylvania-source non-employee compensation and business income reported on a 1099-MISC or 1099-NEC to a nonresident individual or a disregarded entity with a nonresident member, and on lease payments for Pennsylvania real estate to a nonresident individual, estate or trust lessor. It is mandatory once payments to the payee exceed $5,000 in the year and optional below that. Form REV-1832 is the exemption certificate; the payer registers a 1099-MISC/NEC withholding account on myPATH and files REV-1667 with the 1099s by January 31. There is no Pennsylvania backup withholding.

State backup withholding not requiredNonresident non-wage withholding requiredSources checked November 1, 2026Updated November 1, 2026
In this guide
  1. Status
  2. Withholding on non-wage payments to nonresidents
  3. What Pennsylvania does not require
  4. Pass-through entity withholding
  5. From the source
  6. What to confirm
  7. Sources

Status

State backup withholdingNot required (inferred)

Inferred: no provision found in the saved statute or guide

Non-wage payments to nonresidentsRequired

Primary source (statute, regulation or agency publication saved in full); DOR guidance page; statute text not fetched

Federal backup withholding under IRC 3406 (24 percent on a missing or mismatched TIN) applies in Pennsylvania exactly as everywhere else; this page covers only what the state adds. The 50-state tables put Pennsylvania next to its neighbours, and the Pennsylvania 1099 filing page covers whether the state wants its own copy of the 1099.

Withholding on non-wage payments to nonresidents

Applies to
Nonresident individuals and disregarded entities with a nonresident member receiving PA-source non-employee compensation or business income reportable on federal 1099-MISC or 1099-NEC; nonresident individual, estate or trust lessors receiving lease payments (rents, royalties, bonus and damage payments) for PA real estate from a lessee in a trade or business. Not corporations, partnerships, multi-member LLCs, or disregarded entities owned by them.
Threshold
Required when payments to the payee exceed $5,000 in the calendar year; optional below $5,000 (DOR encourages withholding when the total is uncertain)
Rate
3.07% (the PA personal income tax rate under 72 P.S. 7302)
Statute
72 P.S. 7324.4 (Tax Reform Code 324.4, added by Act 43 of 2017); DOR Nonresident Withholding Guidance
Withholding return
1099-MISC/NEC withholding account registered via myPATH (or existing employer withholding account); deposits and quarterly returns via myPATH; REV-1667 Annual Withholding Reconciliation Statement with 1099-MISC/NEC by January 31
Exemption certificate or waiver
REV-1832 (1099-MISC/NEC Withholding Exemption Certificate)
Payee statement
Federal Form 1099-MISC/1099-NEC showing PA withholding, to payee/lessor by January 31; payee files copy with PA return
Due dates
Semiweekly ($5,000+ per quarter), semimonthly ($1,000-$4,999.99 per quarter, within 3 banking days after period), monthly ($300-$999, 15th of following month) or quarterly (under $300, last day of April/July/October/January); REV-1667 and 1099s January 31; payments of $1,000+ by EFT
Exceptions
Wages (reciprocity rules); goods and materials; residential lease payments; real estate outside PA; corporate, partnership and multi-member LLC payees; governmental payors (including PASSHE) are exempt from the duty to withhold on NEC/business income; payees with no PA-source income; REV-1832 exemption certificate

What Pennsylvania does not require

State backup withholding

No state backup withholding: 72 P.S. 7316 et seq.; PA has no backup-withholding provision; the only non-wage withholding is the nonresident 1099-MISC/NEC and lease rule below

Basis: Inferred: no provision found in the saved statute or guide.

Pass-through entity withholding (out of scope)

Pennsylvania requires partnerships and S corporations to withhold PA tax on nonresident individual owners' income (72 P.S. 7324). Entity-level withholding on distributions to nonresident owners is a duty of the entity, not of a payer, and is not covered on this page.

From the source

“Pennsylvania law requires withholding at a rate of 3.07 percent on non-wage Pennsylvania source income payments made to nonresidents”

Pennsylvania DOR, Nonresident Withholding Guidance, read November 1, 2026

What to confirm

  • The statute text (72 P.S. 7324.4) was not retrieved; every figure comes from the Department of Revenue’s nonresident withholding guidance pages.

Sources

Each source below was read and saved on November 1, 2026; the page is built from the saved text. Statutes are cited to the section; department pages and publications to their title and, where shown, revision date.

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