Surplus Line Agents Tax

The Pennsylvania surplus lines tax is imposed upon all premiums received for insurance placed with an unlicensed insurer by a surplus lines agent. The surplus lines tax is in addition to the premiums charged by the insurer.

This tax is 3 percent of gross premiums and must be collected at the time of the delivery of the policy. Licensed surplus lines agents are required to file RCT-123, Gross Premiums Tax — Surplus Lines Agents Report, and remit the taxes due to the Department of Revenue by Jan. 31 of the following year.

The Department of Revenue has determined that premiums charged the commonwealth and its political subdivisions (counties, municipalities, school districts, etc.) are exempt from the tax. However, the enabling statute does not provide any exemptions from the tax.

You may email the Revenue Department at RA-RV-BDRA-CORP-FAX@pa.gov ​to confirm premium tax-exempt status of a particular risk.

For detailed and historic Pennsylvania surplus line agents tax information, please review the Tax Compendium.