Sales tax in PA is 6 percent statewide, with two local add-ons: Allegheny County adds 1 percent for a total of 7 percent, and Philadelphia adds 2 percent for a total of 8 percent.1Commonwealth of Pennsylvania. Tax Rates The tax applies at the point of sale on most tangible goods, all digital products, and a defined list of services. Sellers collect it and send it to the Pennsylvania Department of Revenue.
What You Pay and Where
Most of Pennsylvania pays the flat 6 percent rate. The two local additions are set by law and apply based on where the purchase happens, not where the buyer lives.2Department of Revenue. Sales, Use and Hotel Occupancy Tax
- Statewide: 6 percent
- Allegheny County: 7 percent
- Philadelphia: 8 percent
No other county or municipality in Pennsylvania adds a local sales tax. Vehicles are the exception to the location rule: when you title and register a car or truck through PennDOT, the rate is based on your county of residence, so an Allegheny County resident pays 7 percent and a Philadelphia resident pays 8 percent even if they bought the vehicle somewhere else.3PennDOT. Buying or Selling Your Vehicle in Pennsylvania Trade-ins reduce the taxable amount, since the tax is calculated on the difference between the purchase price and the trade-in value.
What Pennsylvania Taxes
The default rule is that physical items sold or rented at retail are taxable unless specifically exempted. That covers electronics, furniture, appliances, building materials, and household goods, along with equipment rentals and leases.4Legal Information Institute. 61 Pa. Code 31.4 – Rentals or Leases of Tangible Personal Property
Digital Products
Since Act 84 of 2016, the 6 percent tax applies to digital products delivered electronically, whether downloaded or streamed. That includes e-books, streaming video subscriptions like Netflix or Hulu, music and audiobooks, apps, games, and canned software.5Department of Revenue. Digital Products
A Short List of Taxable Services
Most services in Pennsylvania are not taxed, but a defined list has been taxable since 1991. The ones people run into most often are lawn care, self-storage, pest control, and disinfecting services.6Legal Information Institute. 61 Pa. Code 60.3 – Disinfecting or Pest Control Services Also on the list: lobbying, credit reporting, employment agency and help supply services, secretarial and editing services, and catering. Computer programming, custom software development, and computer integration are taxable when the work bundles software and hardware into one system.
Prepared Food and Beverages
Anything sold by a restaurant, café, deli, or other eating establishment is taxable, dine-in or takeout.7Legal Information Institute. 61 Pa. Code 60.7 – Sale and Preparation of Food and Beverages A convenience store that sells sandwiches and hot coffee counts as an eating establishment for this purpose. Certain items are taxable wherever you buy them: soft drinks, sandwiches, salad bar items, hand-dipped ice cream, hot soup, hot pizza, and hot beverages.
What Pennsylvania Exempts
The exemption list is unusually broad, especially for food and clothing. Knowing what qualifies is where real money is saved on everyday purchases.
Groceries
Most food sold by grocery stores is exempt: baked goods, produce, canned goods, meat and cheese by the pound, milk, prepackaged ice cream, frozen foods, and unprepared seafood. Candy, gum, and prepackaged frozen treats are also exempt when sold at a grocery or retail store.7Legal Information Institute. 61 Pa. Code 60.7 – Sale and Preparation of Food and Beverages
The exemption breaks down for prepared or ready-to-eat items. Soft drinks are always taxable. Sandwiches, hot food, salad bar items, and hand-dipped ice cream are taxable even at a grocery store. The practical test is whether the item is ready to eat or needs cooking at home.
Clothing and Footwear
Most everyday clothing and shoes are exempt. Jeans, dress shirts, winter coats, sneakers, and underwear come without sales tax. The taxable exceptions are narrower than most people expect:8Legal Information Institute. 61 Pa. Code 53.1 – Clothing
- Formalwear such as tuxedos, dinner jackets, bridal gowns, opera capes, and silk hats
- Sporting clothing and gear, including team uniforms, cleats, ski boots, golf shoes, bowling shoes, bathing suits, and protective equipment like helmets and pads
- Garments made primarily of fur
- Halloween and theatrical costumes
The rule of thumb is that ordinary daily clothing is exempt, while clothing designed for a specific formal occasion or athletic purpose is taxed.
Medicine and Medical Supplies
Prescription drugs are exempt. So are medical supplies that are consumed during use, like bandages and syringes, along with prosthetic and therapeutic devices designed for a specific individual’s physical condition.9Legal Information Institute. 61 Pa. Code 52.1 – Purchases of Medicines, Medical Supplies, Medical Equipment and Prosthetic or Therapeutic Devices A custom wheelchair fitted for a particular patient is exempt. General medical equipment that is not a prosthetic or therapeutic device remains taxable.
Residential Heating Fuels and Utilities
Electricity, natural gas, fuel oil, kerosene, and bottled gas are exempt when purchased for residential use.10Legal Information Institute. 61 Pa. Code 32.25 – Steam, Gas, Electricity, Fuel Oil and Kerosene The same fuels are taxable for commercial use. In a mixed-use building, only the residential portion qualifies.
Resale and Qualifying Nonprofits
Businesses buying inventory for resale do not pay sales tax on those purchases if they give the seller a properly completed Pennsylvania Exemption Certificate (Form REV-1220). Qualifying charitable, religious, volunteer fire, and nonprofit educational organizations get a limited exemption tied to purchases directly related to their exempt purpose; it does not cover everything the organization buys.11Pennsylvania Code. 61 Pa. Code 32.21 – Charitable, Volunteer Firemens and Religious Organizations
Online Purchases and Use Tax
Most online purchases from major retailers already have Pennsylvania sales tax added at checkout, because the state requires out-of-state sellers to collect once they exceed $100,000 in gross sales to Pennsylvania customers over a rolling 12-month period. There is no separate transaction-count threshold. That rule took effect July 1, 2019, under Act 13 of 2019.12Department of Revenue. Online Retailers Selling Goods and Services to Pennsylvania Customers Marketplace facilitators like Amazon, eBay, and Etsy also collect for sales made through their platforms.
When a seller does not collect Pennsylvania sales tax on something that would have been taxable here, you owe use tax at the same rate.13Legal Information Institute. 61 Pa. Code 31.7 – Use Tax Individuals can report and pay it in two ways: file a use tax return online through myPATH at mypath.pa.gov, or report it annually on the PA-40 state income tax return.14Department of Revenue. Use Tax for Individuals The PA-40 shortcut cannot be used for motor vehicles, watercraft, ATVs, snowmobiles, or items imported through U.S. Customs. Those must go through a separate myPATH use tax return.
If You Sell in Pennsylvania
Any business selling taxable goods or services in Pennsylvania needs a sales tax license before making its first sale. Registration is free through the Department of Revenue’s myPATH portal at mypath.pa.gov.15Commonwealth of Pennsylvania. Register My Business for Taxes
The Department assigns a filing frequency based on how much tax you collect, and you have to file even for periods with no taxable sales.16Pennsylvania Department of Revenue. 2026 Pennsylvania Sales, Use, and Hotel Occupancy Tax Returns, Tax Periods, and Administrative Due Dates
- Monthly filers: due by the 20th of the following month
- Quarterly filers: due April 20, July 20, October 20, and January 20
- Semi-annual filers: due August 20 for the first half of the year and the following February for the second half
If a due date lands on a weekend or holiday, it shifts to the next business day.
File and pay on time and you can keep 1 percent of the tax you collected as a vendor discount, capped per return at $25 for monthly filers, $75 for quarterly filers, and $150 for semi-annual filers, with an annual ceiling of $300 across all periods.17Pennsylvania Department of Revenue. Sales Tax Discount Miss the deadline and the discount is gone for that period.
Late filing triggers a 5 percent penalty on the unpaid tax for the first month, plus another 5 percent for each additional month or fraction of a month, up to a 25 percent cap. The minimum penalty is $5.18Pennsylvania Code. 61 Pa. Code 121.26 – Penalties for Failure to File or for Filing a Late Return Daily interest also accrues on any unpaid balance. For obligations due during 2025 and 2026, the annual rate is 7 percent, which comes out to a daily rate of 0.000192 and compounds until the tax is paid in full.19Pennsylvania Department of Revenue. 2026 Interest Rate and Calculation Method