Article IX: PAYMENT OF TAX TO OTHER POLITICAL SUBDIVISIONS OR STATES AS CREDIT OR DEDUCTION: WITHHOLDING TAX
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Section 9.01. Generally.

Payment of any tax to any political subdivision pursuant to an ordinance or resolution passes or adopted prior to the effective date of this act shall be credited to and allowed as a deduction from the liability of taxpayers for any like tax respectively on salaries, wages, commissions, other compensation or on net profits of business, professions or other activities and for any income tax imposed by any other political subdivision of this Commonwealth under the authority of this act.

Section 9.02. Credits for Tax Paid to Place of Residence.

Payment of any tax on salaries, wages, commissions, other compensation or net profits of business, professions or other activities to a political subdivision by residents thereof pursuant to an ordinance or resolution passed or adopted under the authority of this act shall be credited to and allowed as a deduction from the liability of such persons for any other like tax respectively on salaries, wages, commissions, other compensation or on net profits of business, professions or other activities imposed by any other political subdivision of this Commonwealth under the authority of this act.

Section 9.03. Credits for Tax Paid to Other States by Non-Residents of Pennsylvania.

Payment of any tax on income to any state or to any political subdivision thereof by residents thereof, pursuant to any State or local law, may, at the discretion of the Pennsylvania political subdivision imposing such tax, to the extent that such income includes salaries, wages, commissions, or other compensation or net profits of businesses, professions or other activities but in such proportions as hereinafter set forth, be credited to and allowed as a deduction from the liability of such person for any other tax on salaries, wages, commissions, other compensation or net profits of businesses, professions or other activities imposed by any political subdivision of this Commonwealth under the authority of this act, if residents of the political subdivision of Pennsylvania receive credits and deductions of a similar kind to a like degree from the tax on income imposed by the other state or political subdivision thereof.

Section 9.04. Credits for Tax Paid to Other States by Residents of Pennsylvania.

A. Payment of any tax on income to any State other than Pennsylvania or to any political subdivision located outside the boundaries of this Commonwealth, by residents of a political subdivision located in Pennsylvania shall, to the extent that such income includes salaries, wages, commissions, or other compensation or net profits of businesses, professions or other activities but in such proportions as hereinafter set forth, be credited to and allowed as a deduction from the liability of such person for any other tax on salaries, wages, commissions, other compensation or net profits of businesses, professions or other activities imposed by any political subdivision of this Commonwealth under the authority of this act. No credits are given for state income taxes paid to states that reciprocate with the Commonwealth of Pennsylvania. These states are: Maryland, New Jersey, Ohio, Virginia, West Virginia, and Indiana.

B. No credit or deduction shall be allowed against any tax on earned income imposed under authority of Act 511 for payment of any tax on salaries, wages, commissions, other compensation or net profits of business, professions or other activities to a foreign country, state or political subdivision located outside the geographic and political boundaries of the United States, by residents thereof, pursuant to foreign law.

Section 9.05. Calculation of Credits.

A. Where a credit or a deduction is allowable in any of the several cases hereinabove provided, it shall be allowed in proportion to the concurrent periods for which taxes are imposed by the other state or respective political subdivisions, but not in excess of the amount previously paid for a concurrent period.

B. No credit or deduction shall be allowed against any tax on earned income imposed under authority of this act to the extent of the amount of credit or deduction taken for the same period by the taxpayer against any income tax imposed by the Commonwealth of Pennsylvania under section 314 of the act of March 4, 1971 (P.L. 6) known as the Tax Reform Code of 1971, on account of taxes imposed on income by other states or by their political subdivisions. (As amended 1967 P.L. 171, No. 47 and 1972 P.L. 1043, No. 261).

COMMENT: These are "crediting provisions" set forth in 53 P.S. § 6914. Under O’Reilly v. Fox Chapel, supra., a taxpayer who has paid an income tax to a foreign country may not deduct same or take a credit for such against Act 511 earned income taxes.