Pennsylvania Sales
Tax Rate

State and local rates, exemptions, use tax, economic nexus and the 2026 Philadelphia and Allegheny sourcing change.

Pennsylvania sales tax is 6 percent statewide in 2026. Taxable sales delivered to or used in Allegheny County generally carry an additional 1 percent local tax for a 7 percent combined rate, while taxable sales delivered to or used in Philadelphia generally carry an additional 2 percent local tax for an 8 percent combined rate. Pennsylvania also imposes a complementary use tax when enough sales tax was not collected on a taxable purchase.

A major 2026 change affects local tax sourcing. Act 21 of 2026 moved Philadelphia and Allegheny local sales tax toward destination-based sourcing for taxable products and services. The Department of Revenue states that the law applies retroactively to tax years after December 31, 2025, while enforcement of the new vendor collection rules begins October 1, 2026. Businesses selling into these jurisdictions should therefore review destination information rather than assuming the seller location controls the local rate.

Pennsylvania Sales Tax Rates in 2026

Pennsylvania uses a 6 percent state sales and use tax plus limited local additions in Philadelphia and Allegheny County. Most other Pennsylvania locations use the 6 percent state rate for ordinary taxable transactions.

The applicable rate should be based on the transaction and the current sourcing rule. A business should not apply a statewide average when the delivery destination is Philadelphia or Allegheny County.

How to Calculate Pennsylvania Sales Tax

Pennsylvania sales tax is calculated by multiplying the taxable purchase price by the rate that applies to the sale or delivery location. The taxable base can include certain charges connected with a taxable sale, depending on the transaction.

Pennsylvania Sales Tax = Taxable Sales Price × Applicable State and Local Rate

For example, a taxable $500 purchase at the 6 percent state rate produces $30 of sales tax. If the same taxable purchase is delivered to Philadelphia at an 8 percent combined rate, the tax is $40. In Allegheny County at 7 percent, the tax is $35.

What Is Taxable in Pennsylvania?

Pennsylvania generally taxes retail sales, rentals and use of tangible personal property unless an exemption applies. The tax base also covers digital products plus certain services identified by Pennsylvania law.

• Most ordinary taxable tangible personal property
• Digital products such as many e-books, streaming subscriptions, digital audio, apps and games
• Certain services related to tangible personal property
• Specific business services identified by Pennsylvania tax law
• Prepared food and many restaurant transactions
• Taxable delivery or service charges when they are part of a taxable sale

Service businesses should verify whether their exact activity is taxable. Pennsylvania does not tax every service simply because the business receives payment for it.

Pennsylvania Sales Tax Exemptions

Pennsylvania exempts many common consumer purchases plus specific business or resale transactions. Exemption treatment depends on the product, purchaser and supporting documentation.

• Food for home consumption that is not ready-to-eat
• Candy and gum under Pennsylvania rules
• Most ordinary clothing and footwear
• Textbooks that meet the exemption rules
• Prescription drugs and qualifying pharmaceutical items
• Residential heating fuels such as oil, electricity, gas, coal and firewood
• Property purchased for resale with proper exemption documentation
• Other transactions specifically exempt under Pennsylvania law

An exemption should not be treated as a zero-rate sale without documentation when Pennsylvania requires an exemption certificate. Sellers should keep records that explain why tax was not collected.

Food, Clothing and Digital Products in Pennsylvania

Pennsylvania treats common purchase categories differently. Many grocery-store food items and most ordinary clothing are exempt, while ready-to-eat food and many digital products are taxable.

This distinction is important for online catalogs and mixed retail businesses. A cart can contain both taxable and exempt items, so the tax calculation should classify each line item instead of applying one rate to the entire order.

Pennsylvania Use Tax

Use tax is the counterpart to Pennsylvania sales tax. It applies when a taxable item or service is delivered into or used in Pennsylvania and the seller did not collect enough Pennsylvania sales tax.

The use tax rate generally matches the sales tax rate for the location where the item or service is used: 6 percent statewide plus the applicable 1 percent Allegheny County or 2 percent Philadelphia local use tax. Businesses can owe use tax on online purchases, out-of-state purchases or taxable business expenses when the vendor did not collect the required tax.

Pennsylvania Economic Nexus for Online Sellers

A remote seller can create Pennsylvania sales tax nexus when Pennsylvania annual gross sales exceed $100,000. Businesses that meet the economic nexus standard generally must register, collect and remit Pennsylvania sales tax even without a traditional storefront in the state.

Physical presence can also create collection duties. Inventory stored at a Pennsylvania fulfillment or distribution center can establish Pennsylvania tax obligations even when the business sells through an online platform.

Marketplace Facilitators and Online Sales

Marketplace facilitators can have Pennsylvania collection responsibilities for taxable marketplace transactions. A seller should identify which sales are collected by the marketplace plus which direct sales remain the seller's own responsibility.

Third-party delivery platforms can also have sales tax collection duties on taxable restaurant or retail orders. Tax can apply to taxable items plus related customer-facing delivery or service fees when those charges are part of the taxable transaction.

Do Pennsylvania Businesses Need a Sales Tax License?

Businesses required to collect Pennsylvania sales tax need the appropriate Sales, Use and Hotel Occupancy Tax license. Registration is handled through the state business tax registration process.

A business should register before collecting tax from customers. Collected sales tax is money held for remittance to the state, so it should remain separate from ordinary business revenue in accounting records.

Pennsylvania Sales Tax Filing and Recordkeeping

Pennsylvania sales and use tax reporting frequency depends on the taxpayer's account and liability. The Department of Revenue commonly uses monthly reporting for many sales tax accounts, with the tax due by the twentieth day of the following month under the standard monthly schedule.

Businesses should retain records supporting gross sales, taxable sales, exempt sales, tax collected, exemption certificates, marketplace transactions and use-tax adjustments. Good documentation is especially important when one business sells into multiple Pennsylvania local tax jurisdictions.

Pennsylvania Sales Tax vs. Income Tax and Payroll

Sales tax applies to taxable customer transactions while Pennsylvania personal income tax applies to taxable income. Employee payroll withholding is a separate system. Ordinary sales tax should not be deducted from an employee's wages.

For annual personal income tax questions, use the Pennsylvania income tax guide. If a business needs to document genuine employee wages after payroll has been calculated, the Pennsylvania pay stub generator is the relevant payroll tool.

Businesses that need a broader payroll-document workflow can use make online paystub only after the underlying earnings, deductions and payment information has been verified.

Methodology and 2026 Accuracy

This guide reflects Pennsylvania Department of Revenue sales and use tax guidance available in August 2026, including the 6 percent state rate, Philadelphia and Allegheny local rates, economic nexus guidance plus the 2026 destination-sourcing change for local tax. Businesses should verify current rates and sourcing instructions when a transaction is finalized.