Minimum Sales Rate Tax for 2024
| 6% | Column content | Column content | Column content | Column content | |
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| 2.0% | Column content | Column content | Column content | Column content | |
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| Scientific & Cultural Fac.(cd) | Column content | Column content | Column content | Column content | |
| Regional Transport Authority | Column content | Column content | Column content | Column content | |
| Minimum combined sales tax rate value | 8.0% | Column content | Column content | Column content | Column content |
| Special tax | 20th or last day of the month following the reporting period. | Column content | Column content | Column content | Column content |
| Economic sales nexus threshold | Column content | Column content | Column content | Column content | |
| Transactions threshold | $100,000 | Column content | Column content | Column content | Column content |
| Sales tax return filing due date | N/A | Column content | Column content | Column content | Column content |
The statewide state sales tax rate in Pennsylvania is 6.0%, and since the Philadelphia County sales tax rate is 2.0% and city-specific sales tax rate is 0%, the minimum sales tax rate for Philadelphia is 8.0%.
How to calculate your sales tax rate
Use our online sales tax calculator to determine the combined state and local sales tax rate for each location where you have a physical or economic nexus. Just enter your state and ZIP code to get your sales tax rate.
Looking for help calculating your sales tax? Contact us today to book a free consultation!
What is nexus?
In Philadelphia, businesses must understand “nexus” to determine their tax obligations. Nexus refers to the connection that requires a business to collect sales tax in a state. This concept became even more important after the U.S. Supreme Court’s decision in South Dakota v. Wayfair, Inc., which allowed states to require sales tax collection based on economic activity rather than just a physical presence.
Specific sales tax rules for Philadelphia
Pennsylvania imposes various taxes on specific goods and services. Cigarettes and little cigars are taxed at $2.60 per pack of 20 ($0.13 per stick) or $26 per carton, with retailer costs increasing from 6% to 7%. Liquor sold by the Pennsylvania Liquor Control Board is subject to an 18% tax calculated on the consumer price, including markup and fees, along with an additional sales tax. Medical marijuana is taxed at 5% on gross receipts from grower/processors selling to dispensaries. Vehicle rentals of 29 days or less are subject to a 2% Vehicle Rental Tax, applied to the purchase price, in addition to standard state and local taxes and fees.
Services
Mostly not subject to sales tax
Goods
Products like appliances, cars, furniture, electronics, and sports equipment are typically taxed.
Clothing
Mostly exempt from tax.
Electronics
Taxable.
SaaS
Taxable.
Digital Products
Generally subject to sales tax
Software
Prewritten software is taxed
Freight/Shipping
Taxed if integrated into the items sales price
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