The Allegheny County RAD tax is a 1% local sales tax that sits on top of Pennsylvania’s 6% state sales tax, bringing the total rate on most taxable purchases in the county to 7%. The extra penny per dollar goes to the Allegheny Regional Asset District, which funds libraries, parks, museums, the zoo, transit, and cultural organizations, and also sends money to the county and its 128 municipalities for local services and property tax relief. For 2026, the district projects roughly $135 million in sales tax collections.
How the 1% Rate Works
Pennsylvania authorized the tax through Act 77 of 1993, which let Allegheny County add a 1% local option sales and use tax to the same transactions covered by the state’s 6% levy.1Allegheny Regional Asset District. About It took effect in 1994 and has operated continuously since. Buy a $100 television in the county and you pay $6 to the state, $1 to RAD, and $7 total. In neighboring counties without a local surtax, the same purchase costs $6 in tax.
The RAD tax is not a separate tax with its own categories. It mirrors the state sales tax exactly. If Pennsylvania taxes something at 6%, Allegheny County adds 1%. If the state exempts it, so does the county.
What’s Taxable and What’s Exempt
Because the RAD tax follows state rules, the full 7% applies to electronics, furniture, appliances, household supplies, cleaning products, pet supplies, toys, and restaurant meals. Most tangible goods sold at retail are taxable unless they fall into a specific exemption.
Pennsylvania’s exemptions cover a lot of everyday spending:
- Most clothing and shoes for everyday wear are exempt. Formalwear, real and synthetic furs, costumes, and specialized sports equipment like helmets or cleats are taxable.
- Unprepared food from a grocery store, farmers market, or bakery is exempt. Ready-to-eat meals, hot food, and sandwiches are taxable. Soft drinks and flavored water are taxable, but candy, gum, and fruit drinks with at least 25% juice are not.
- Prescription drugs and most over-the-counter medical supplies are exempt.
- Textbooks sold by a school or authorized bookstore, newspapers, and subscription magazines are exempt.
The Pennsylvania Department of Revenue publishes detailed guidance for edge cases.2Commonwealth of Pennsylvania. Sales, Use and Hotel Occupancy Tax
Vehicles and the Registration Rule
Cars work differently from most purchases. Pennsylvania charges the 1% local tax on motor vehicles registered to an Allegheny County address, even if you buy the vehicle at a dealership in another county.3Pennsylvania Department of Revenue. What Is the Sales Tax Rate and When Do Licensees Collect Local Sales Tax The tax follows your registration address, not the seller’s location. Crossing the county line to save 1% on a $30,000 car does not work, so build the extra cost into your budget.
Online and Out-of-County Purchases
When a taxable item comes from a seller that does not collect the Allegheny County tax, you still owe it. Pennsylvania calls this the use tax, and for county residents it works out to the same combined 7%.2Commonwealth of Pennsylvania. Sales, Use and Hotel Occupancy Tax Major online retailers and marketplaces generally collect both portions automatically, but smaller sellers sometimes collect only the 6% state rate, or nothing at all.
Individuals can report and pay use tax in two ways: filing a use tax return through the Department of Revenue’s myPATH portal, or reporting it on the annual PA-40 state income tax return.4Commonwealth of Pennsylvania. Use Tax for Individuals The annual PA-40 method works for routine household purchases. It cannot be used for vehicles, watercraft, ATVs, or items flagged by a Notice of Potential Use Tax Due; those go through myPATH separately.
Where the Money Goes
Act 77 splits RAD revenue in half. Half funds regional assets. The other half goes to the county government and municipalities for local services and property tax relief.5Allegheny Regional Asset District. Allegheny Regional Asset District Each side has received more than $2.5 billion since 1994. The municipal share carries a requirement that a portion reduce residential property taxes, so residents who never set foot in a RAD-funded institution still benefit.
For 2026, the district authorized $147.9 million in total investments. The largest recipients under the long-term funding agreements include:
- Allegheny County Regional Parks: about $39.2 million (operating and capital)
- Carnegie Library of Pittsburgh: about $26.4 million
- City of Pittsburgh Regional Parks: about $13.4 million (operating and capital)
- Allegheny County Library Association: about $8.3 million
- Pittsburgh Zoo and Aquarium: about $7.2 million (operating and capital)
- Carnegie Museums of Pittsburgh: about $4.5 million
- Phipps Conservatory and Botanical Gardens: about $3.8 million (operating and capital)
- National Aviary in Pittsburgh: about $2.3 million (operating and capital)
Annual grants go to dozens of other organizations, including the Pittsburgh Symphony Orchestra, Pittsburgh Ballet Theatre, the Children’s Museum, the Senator John Heinz History Center, and WQED Pittsburgh. Pittsburgh Regional Transit receives $3 million. The Sports and Exhibition Authority gets a separate $13.4 million multi-year allocation for stadium and convention center debt service.6Allegheny Regional Asset District. RAD 2026 Budget Book
Deducting the Tax on Your Federal Return
If you itemize on your federal return, you can deduct state and local sales taxes, including the 1% RAD portion, on Schedule A. You choose between deducting state income tax or state and local sales tax, whichever helps more. For 2026, the total state and local tax deduction is capped at $40,000 for most filers, or $20,000 if married filing separately. A modified adjusted gross income limitation can reduce that cap, but it will not drop below $10,000.7Internal Revenue Service. Topic No. 503, Deductible Taxes
Two methods work for calculating the sales tax deduction. You can add up every receipt showing sales tax paid during the year, or you can use the IRS optional sales tax tables, which estimate the deduction based on income, family size, and ZIP code. The tables cover routine spending. Any large one-time purchase such as a car or boat has to be calculated from the actual receipt and added on top.8Internal Revenue Service. Use the Sales Tax Deduction Calculator Because Allegheny County’s 7% rate runs above the base in most Pennsylvania counties, the sales tax deduction is worth checking in years with significant purchases.