The sales tax in Allentown, Pennsylvania is a flat 6%, the same statewide rate charged everywhere in Lehigh County with no local surcharge added on top.1Department of Revenue. Tax Rates That puts Allentown shoppers below the 8% paid in Philadelphia and the 7% paid in Allegheny County, where Pittsburgh sits. The 6% applies to most tangible goods and a range of services, but Pennsylvania keeps groceries, everyday clothing, and medicine off the tax rolls entirely.
Why the Rate Stays at 6%
Pennsylvania imposes a 6% sales tax on retail sales of tangible personal property and certain services statewide.2Pennsylvania General Assembly. Pennsylvania Code 72 PS 7202 – Imposition of Tax State law authorizes only two local add-ons: 2% in Philadelphia and 1% in Allegheny County.3Department of Revenue. Sales, Use and Hotel Occupancy Tax Lehigh County has no such supplement. Whether you’re buying furniture on Hamilton Street or electronics at a big-box store off Route 22, the tax on your receipt is 6% and nothing more.
What You Pay Tax On
The default rule is simple. If you’re buying a physical product at retail in Allentown, it’s almost certainly taxable at 6%. Electronics, appliances, household furniture, sporting goods, and most other tangible items all carry the tax. Vehicle purchases are taxed on the sale price, and the Department of Revenue can reassess that tax based on fair market value if it believes the stated price is suspiciously low.4Pennsylvania Department of Revenue. Motor Vehicle Understated Value Program
Services
Pennsylvania taxes many services performed on tangible personal property. Repairs, alterations, cleaning, and maintenance on items like appliances, electronics, and vehicles are all taxable, so an oil change or a dishwasher repair comes with the 6% added to the bill.5Cornell Law Institute. 61 Pa Code 31.5 – Persons Rendering Taxable Services Repairs on clothing and footwear are an exception. Resoling shoes or tailoring a coat is tax-free.
Cellular service, text messaging, and landline phone service are taxable.6Cornell Law Institute. 61 Pa Code 60.20 – Telecommunications Service Internet access is not. Pennsylvania classifies internet access as an “enhanced telecommunication service” outside the taxable definition, and the federal Internet Tax Freedom Act permanently bars states from taxing internet access.7Office of the Law Revision Counsel. 47 USC 151 – Internet Tax Freedom Act
Digital Goods and Software
Since 2016, digital products delivered electronically have been taxed at the same 6% rate as physical goods. Streaming video subscriptions, downloaded music and ebooks, mobile apps, and digital games all qualify. Canned software is also taxable, whether downloaded or accessed through the cloud as Software as a Service, when the user is in Pennsylvania.8Pennsylvania Department of Revenue. What Are the Sales and Use Tax Consequences When Software as a Service (SaaS) Is Accessed Remotely?
What’s Exempt
Pennsylvania’s exemption list is broader than many states’ and covers the categories that weigh most on household budgets. These exemptions apply statewide, so every Allentown shopper benefits from them.
Groceries and Beverages
Most food bought for home preparation is exempt. Produce, bread, cereal, meat, dairy, and other staples ring up tax-free.9Pennsylvania General Assembly. Pennsylvania Code 72 PS 7204 – Exclusions from Tax Candy and gum are also exempt, unlike in many other states. The line between taxable and tax-free comes down to preparation:
- Taxable: restaurant meals, deli sandwiches sold ready to eat, hot prepared foods, and items sold with utensils for immediate consumption.
- Tax-free: uncooked groceries, packaged foods meant for home preparation, coffee beans, and dry tea.
Beverages follow their own logic. Soft drinks, sports drinks, and flavored water are taxable. A brewed cup of coffee from a café is taxable, but a bag of coffee beans is not. Anything paid for with SNAP or WIC is exempt regardless of category.
Clothing and Footwear
Everyday clothing and shoes are exempt from sales tax.10PA Business One-Stop Hub. Business Licensing Reference Guides – Clothing Stores and Boutiques T-shirts, jeans, winter coats, sneakers, and similar wardrobe staples qualify. The exemption has edges that catch people off guard:
- Taxable: formal day or evening wear, accessories and ornamental items like jewelry, fur garments (where fur is the chief-value material), sporting goods, athletic clothing not worn outside of sports, and backpacks.
- Tax-free: ordinary garments, footwear, clothing patterns, and component materials for making clothing.9Pennsylvania General Assembly. Pennsylvania Code 72 PS 7204 – Exclusions from Tax
Medicine and Hygiene
Prescription and non-prescription medicines, medical supplies, and therapeutic devices are all exempt. That covers over-the-counter pain relievers through wheelchairs, hearing aids, and prosthetics.9Pennsylvania General Assembly. Pennsylvania Code 72 PS 7204 – Exclusions from Tax Pennsylvania also exempts personal hygiene products that other states tax: diapers, toilet paper, toothpaste, toothbrushes, dental floss, and feminine hygiene products.
Residential Utilities
Home heating is tax-free. Electricity, natural gas, fuel oil, and bottled gas purchased for residential use are exempt from the 6% tax.9Pennsylvania General Assembly. Pennsylvania Code 72 PS 7204 – Exclusions from Tax Basic local telephone service for residential customers is also exempt.
Out-of-State and Online Purchases
If you buy something taxable from an out-of-state seller that doesn’t charge Pennsylvania sales tax, you owe use tax at the same 6% rate. The use tax exists to prevent residents from avoiding sales tax by shopping across state lines or through sellers with no Pennsylvania presence. There is no minimum dollar amount or annual threshold below which use tax doesn’t apply. Every taxable purchase where sales tax wasn’t collected triggers the obligation, and the Department of Revenue can assess the tax along with penalties and interest when it finds unreported purchases.11Commonwealth of Pennsylvania. Use Tax In practice, this matters most for larger purchases like furniture, electronics, or vehicles bought out of state.
For routine online shopping, most of the work has already been done at checkout. Pennsylvania requires marketplace facilitators and remote sellers to collect and remit the 6% tax once their annual gross sales into the state top $100,000 in a calendar year. There is no separate transaction-count threshold.12Pennsylvania Department of Revenue. Online Retailers A marketplace facilitator is any platform that lists third-party sellers’ products, collects payment from buyers, and transmits payment to the seller. Once a facilitator crosses the threshold, it collects tax on every sale it facilitates into Pennsylvania. The practical result for Allentown shoppers is that most major online purchases already include the correct 6% tax at checkout.
Hotel Stays
Overnight visitors pay a 6% state hotel occupancy tax on their room charge. Unlike Philadelphia and Allegheny County, Lehigh County adds no local hotel tax on top of the state portion.13Pennsylvania Department of Revenue. What Is the Hotel Occupancy Tax Rate? So the total tax on an Allentown hotel bill matches the retail sales tax rate: a flat 6%.