The sales tax in Pennsylvania is 6 percent statewide, with two local exceptions: Allegheny County adds 1 percent for a total of 7 percent, and Philadelphia adds 2 percent for a total of 8 percent.1Department of Revenue. Tax Rates The tax applies to most tangible goods and a specific list of services. Several large categories of everyday spending are exempt, including most clothing, groceries bought for home preparation, and prescription medications.
The Statewide Rate and the Two Local Add-Ons
The base rate across all of Pennsylvania is 6 percent, applied to retail sales of tangible personal property and certain services.2Commonwealth of Pennsylvania Department of Revenue. Sales, Use and Hotel Occupancy Tax Only two jurisdictions layer anything on top of it:
- Allegheny County: a 1 percent local surcharge, for a combined rate of 7 percent on taxable purchases made in or delivered to the county.1Department of Revenue. Tax Rates
- Philadelphia: a 2 percent local surcharge, for a combined rate of 8 percent.3City of Philadelphia. Sales, Use, and Hotel Occupancy Tax
No other county or municipality in Pennsylvania imposes its own sales tax. Philadelphia merchants collect both the city and state portions and remit them together to the Department of Revenue rather than to the city.3City of Philadelphia. Sales, Use, and Hotel Occupancy Tax
What’s Exempt from Sales Tax
Pennsylvania keeps several large categories of daily spending off the tax rolls. The three biggest are clothing, groceries, and healthcare items.
Clothing and Footwear
Most clothing and footwear for everyday use is tax-free: shirts, pants, shoes, coats, and undergarments all qualify. The exemption has limits. Fur garments, formal day or evening wear, and sporting equipment or clothing designed primarily for sports use remain taxable. Accessories such as jewelry, handbags, and luggage are taxable too.
Groceries
Food bought for preparation and consumption at home is exempt. That covers produce, dairy, bread, meat, and similar staples. Prepared hot foods, restaurant meals, and items sold for immediate consumption at the point of sale are not exempt and carry the full tax.
Prescription Drugs and Medical Supplies
Prescription medications, medical supplies, orthopedic devices, and prosthetics are all exempt from the 6 percent tax.
Taxable Items That Catch People Off Guard
A few things are taxable in Pennsylvania that shoppers often assume aren’t.
Digital Products
Since 2016, Pennsylvania has applied the 6 percent sales and use tax to digital products delivered electronically. This includes e-books, downloaded music, streaming video subscriptions such as Netflix or Hulu, apps, games, and canned software.4Department of Revenue. Digital Products If you pay for it and receive it by download or stream, it is generally taxable.
A Specific List of Services
Pennsylvania taxes a defined set of services rather than services broadly. Taxable services include building maintenance and janitorial work, pest control, disinfecting and exterminating, computer programming and software design, custom software development, computer systems integration, and employment agency or help-supply services.5Pennsylvania Code and Bulletin. 61 Pa. Code 9.3 – Additional Services Which Are Subject to Tax Expect sales tax to appear on the invoice when you hire a provider in one of these categories.
When the Seller Doesn’t Charge Pennsylvania Tax
If you buy a taxable item from a seller who does not charge Pennsylvania sales tax, which happens with some out-of-state online orders, catalog purchases, or items picked up while traveling, you owe use tax at the same rate: 6 percent statewide, 7 percent in Allegheny County, or 8 percent in Philadelphia.6Department of Revenue. Use Tax For Individuals
You have two ways to report and pay it. You can file an Online Use Tax Return through the Department of Revenue’s myPATH portal at any point during the year. Or you can report it once a year on Line 25 of your PA-40 personal income tax return, using the Use Tax Worksheet in the instructions.7PA.gov. 2025 Pennsylvania Personal Income Tax Return Instructions (PA-40 IN) The worksheet lets you subtract sales tax you already paid to another state on the same items.
The annual PA-40 method is not available for certain higher-value or regulated purchases: motor vehicles, boats, ATVs, snowmobiles, items imported through U.S. Customs, cigarettes, or anything bought for a business. Those have to be reported separately through myPATH.6Department of Revenue. Use Tax For Individuals
Buying a Vehicle Out of State
If you buy a car, truck, or other motor vehicle from an out-of-state dealer or private party and bring it into Pennsylvania, you owe use tax when you register it. Pennsylvania credits sales tax paid to another state, but only when that state offers the same credit to Pennsylvania buyers.8Department of Revenue. Motor Vehicle Understated Value Program The Department publishes a reciprocity chart on Form REV-227 listing which states qualify.
If You’re Collecting the Tax as a Business
Any business that sells taxable goods or provides taxable services in Pennsylvania must obtain a Sales, Use, and Hotel Occupancy Tax License before making its first taxable sale.2Commonwealth of Pennsylvania Department of Revenue. Sales, Use and Hotel Occupancy Tax You apply through the Pennsylvania Online Business Tax Registration on myPATH. There is no fee for the license. Once registered, the sales tax you collect is held in trust for the Commonwealth, not treated as your own revenue.9Legal Information Institute. 61 Pa. Code 34.2 – Keeping of Records
Returns are filed electronically through myPATH on a monthly, quarterly, or semi-annual schedule assigned by the Department based on how much tax you typically collect.10Pennsylvania Department of Revenue. 2026 Pennsylvania Sales, Use, and Hotel Occupancy Tax Returns, Tax Periods, and Administrative Due Dates (REV-819) Each return is due by the 20th of the month following the close of the reporting period, moving to the next business day if the 20th falls on a weekend or holiday. You still have to file for periods when you made no taxable sales.
If you buy inventory for resale, you can purchase it tax-free by giving your supplier a completed PA Exemption Certificate (Form REV-1220) with the resale box checked and your 8-digit sales tax license or wholesaler certificate number.11PA Business Hub. Help Guides – Complete the PA Tax Exemption Certificate The form stays with the seller rather than being filed with the state. Misusing a resale certificate to avoid tax on items you actually consume makes you liable for the unpaid tax plus penalties and interest.
Late Filing Costs
Filing late carries a penalty of 5 percent of the tax due, plus an additional 5 percent for each additional month or partial month the return remains unfiled, capped at 25 percent. The minimum penalty is $5.12Pennsylvania Code and Bulletin. 61 Pa. Code 121.26 – Penalties for Failure to File or for Filing a Late Return On top of that, interest accrues daily on unpaid tax at an annual rate of 7 percent for the 2025–2026 period, running from the original due date until the tax is paid in full.13PA.gov. 2026 Interest Rate and Calculation Method for Title 72 Taxes Due After Jan. 1, 1982