The sales tax in Allegheny County is 7%: Pennsylvania’s 6% statewide sales and use tax plus a 1% local tax unique to the county.1Commonwealth of Pennsylvania. Tax Rates2County of Allegheny, PA – eCode360. Article II: Allegheny Regional Asset District Only Philadelphia (2% local) and Allegheny County add a local sales tax in Pennsylvania, so shoppers here pay a penny more on the dollar than buyers in most of the state. The 1% is collected under the Regional Asset District ordinance and helps fund libraries, parks, cultural organizations, and public transit.3Allegheny Regional Asset District. RAD Works Here
What You Pay 7% On
The 7% rate applies to the retail sale of tangible personal property — electronics, furniture, appliances, tools, and most physical goods sold in a store.4Pennsylvania Department of Revenue. Sales, Use and Hotel Occupancy Tax Motor vehicles registered in Allegheny County also carry the full 7%, calculated on the purchase price or fair market value.5Pennsylvania Department of Revenue. Motor Vehicle Understated Value Program
Digital products are taxable too. Since Act 84 of 2016, Pennsylvania has taxed items delivered by download or streaming: video subscriptions, music and audiobook downloads, apps, in-app purchases, and online game subscriptions.6Pennsylvania Department of Revenue. Digital Products If your Netflix or Spotify billing address is in Allegheny County, you pay 7% on the subscription.
A few services fall under the tax as well, including telecommunications (mobile plans, landlines, data), lobbying, and certain building maintenance activities.4Pennsylvania Department of Revenue. Sales, Use and Hotel Occupancy Tax Most professional services such as legal advice and accounting are not taxed.
What’s Exempt
Pennsylvania exempts most everyday necessities from sales tax. The main categories are grocery food, most clothing, prescription drugs, textbooks, and residential heating fuels including gas, oil, electricity, coal, and firewood.4Pennsylvania Department of Revenue. Sales, Use and Hotel Occupancy Tax
Clothing
Everyday clothing and footwear are tax-free regardless of price: jeans, t-shirts, work boots, winter coats, uniforms. Formal wear, fur garments, clothing designed primarily for sports, and accessories like umbrellas and handkerchiefs are taxable.7Pennsylvania Department of Revenue. Retailer’s Information (REV-717) A tuxedo, prom dress, swimsuit, or pair of ski boots gets 7%; a leather jacket or hunting camo does not.
Food
Food sold for home preparation is exempt — produce, dairy, meat, baked goods, groceries generally. Ready-to-eat food, candy, soft drinks, and restaurant meals are taxable.8Pennsylvania General Assembly. Pennsylvania Code 72 PS 3407-102 – Definitions An unheated deli sandwich sold as a grocery is generally exempt; if it’s heated, it isn’t.
Medical
Prescription medications are exempt, along with crutches, wheelchairs, artificial limbs, hearing devices, and eyeglasses prescribed by a doctor.8Pennsylvania General Assembly. Pennsylvania Code 72 PS 3407-102 – Definitions Over-the-counter medications have more limited exemptions, so not everything at the pharmacy counter is tax-free.
Hotels and Short-Term Rentals Are Taxed Differently
Lodging doesn’t follow the 7% retail rate. On top of Pennsylvania’s 6% state hotel occupancy tax, Allegheny County adds a 7% hotel room rental tax that applies to hotels, motels, and short-term rentals booked through platforms like Airbnb.9Allegheny County Treasurer Office. Hotel Room Rental Tax The combined rate on a hotel stay is 13%. A $200 room ends up with roughly $26 per night in taxes.
Use Tax on Out-of-State and Online Purchases
When you buy a taxable item from a seller that doesn’t collect Pennsylvania sales tax, you owe use tax at the same 7% rate and must report it to the Department of Revenue yourself.10Pennsylvania Department of Revenue. Use Tax Individuals report it on their Pennsylvania personal income tax return. Businesses report it on line 6 of their regular sales and use tax return in myPATH. The Department audits for unpaid use tax, and if an auditor finds untaxed purchases, you owe the tax plus penalty and interest.
For Businesses: Collecting and Filing Sales Tax
Any business making taxable sales in Pennsylvania needs a Sales, Use, and Hotel Occupancy Tax License before collecting tax from customers. Registration happens online through myPATH using the “Pennsylvania Online Business Tax Registration” service, which replaced the old paper PA-100.11Commonwealth of Pennsylvania. Register My Business for Taxes You’ll need your FEIN (or SSN for sole proprietors), legal business name, physical address, ownership structure, and expected sales volume. The state assigns your filing frequency based on expected collections and re-evaluates it each year.
Remote Sellers and Marketplaces
Out-of-state sellers with at least $100,000 in annual Pennsylvania gross sales must register, collect, and remit Pennsylvania sales tax, including the 1% Allegheny County portion on deliveries to county addresses. The threshold is measured by calendar year and counts all sales channels, taxable and nontaxable. There is no separate transaction-count requirement.12Pennsylvania Department of Revenue. Online Retailers
Marketplace facilitators like Amazon, eBay, and Etsy handle collection for sales made through their platforms. A facilitator combines its facilitated sales and any direct sales to measure the $100,000 threshold. Sellers who also sell outside a marketplace, through their own website for instance, remain responsible for collecting tax on those non-marketplace sales.
Filing Frequency
Filing frequency depends on how much tax you report. For monthly or quarterly filers, the Department looks at third-quarter tax (July through September) to set the next year’s schedule:
- Monthly: $600 or more in Q3 sales tax
- Quarterly: $75 to $599.99
- Semi-annual: under $75
Semi-annual filers are evaluated differently, using total tax from the last half of the prior year plus the first half of the current year. For that group, monthly is $2,400 or more, quarterly is $300 to $2,399.99, and semi-annual is under $300.13Pennsylvania Department of Revenue. How Is My Filing Period for Sales Tax Determined?
2026 Due Dates
All returns are filed through myPATH at mypath.pa.gov or by phone via TeleFile at 1-800-748-8299. Returns must be filed even for periods with zero taxable sales.14Pennsylvania Department of Revenue. 2026 Pennsylvania Sales, Use, and Hotel Occupancy Tax Returns, Tax Periods, and Administrative Due Dates Monthly returns are due by the 20th of the following month. When the 20th lands on a weekend or holiday, the deadline moves to the next business day. The 2026 quarterly deadlines:
- Q1 (January–March): April 20, 2026
- Q2 (April–June): July 20, 2026
- Q3 (July–September): October 20, 2026
- Q4 (October–December): January 20, 2027
Returns and payments must be submitted by 11:59 PM on the due date to count as timely.
Vendor Discount
Businesses that file and pay on time get a vendor discount of 1% of the tax due, capped by filing frequency: up to $25 per return for monthly filers, $75 for quarterly, and $150 for semi-annual.15Pennsylvania Department of Revenue. What Is the Latest Date and Time a Sales and Use Tax Return and Payment Can Be Submitted? myPATH and TeleFile apply it automatically when you file on time.
Penalties for Filing Late
Missing a deadline gets expensive. Pennsylvania imposes two penalties that can stack: a late filing penalty of 5% per month on the unpaid tax, up to 25%, and an underpayment penalty of 3% per month on the unpaid balance from the date filed until the date paid, up to 18%. Interest also accrues, set at 7% for 2026.16Pennsylvania Department of Revenue. How Is Sales Tax Penalty/Interest Calculated? A business three months late on $1,000 of tax owes $150 in late-filing penalty alone before interest. Deliberate tax evasion carries criminal penalties including fines and potential imprisonment.