Total Range for 2025
| Base state sales tax rate | 6% | Base state sales tax rate | Base state sales tax rate | Base state sales tax rate | Base state sales tax rate |
| Local rate range | 0%-2.0% | Base state sales tax rate | Base state sales tax rate | Base state sales tax rate | Base state sales tax rate |
| Total rate range | 6.0%-8.0% | Base state sales tax rate | Base state sales tax rate | Base state sales tax rate | Base state sales tax rate |
| Economic sales nexus threshold | Base state sales tax rate | Base state sales tax rate | Base state sales tax rate | Base state sales tax rate | |
| Transactions threshold | N/A | Base state sales tax rate | Base state sales tax rate | Base state sales tax rate | Base state sales tax rate |
| Sales tax return filing due date | 20th of following month | Base state sales tax rate | Base state sales tax rate | Base state sales tax rate | Base state sales tax rate |
The base state sales tax rate in Pennsylvania is 6%, but since the local rates range from 0-2% the total sales tax range is 6-8%.
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.
Example of using the sales tax rate in a tax calculation:
If you sell a product for $100 in a location with a combined sales tax rate of 7.5% (6% base rate + 1.5% local rate), the sales tax amount would be $7.50 (100 x 7.5%). You would collect $107.50 ($100 + $7.50) from the customer.
Nexus: Why may you need to collect sales tax in Pennsylvania?
In Pennsylvania, similar to many other states, nexus can be established through two primary avenues, triggering the responsibility for a business to collect and remit sales tax: physical nexus and economic nexus.
Physical Nexus: A business establishes physical nexus in Pennsylvania if it maintains a tangible presence in the state. This includes, but is not limited to:
- Operating an office, warehouse, or store in Pennsylvania.
- Employing individuals, representatives, or agents who solicit sales within Pennsylvania on the business’s behalf.
- Possessing or leasing tangible personal property within Pennsylvania, with certain exceptions.
Economic Nexus: Even in the absence of a physical presence, a business may still establish nexus in Pennsylvania if it meets the state’s economic nexus criteria. Pennsylvania follows a destination-based sourcing rule, meaning sales tax is determined by the customer’s location rather than the seller’s.
As of July 1, 2019, Pennsylvania considers a seller to have economic nexus if their sales of tangible personal property delivered to Pennsylvania customers surpass $100,000 within the preceding twelve months.
Key Points to Note:
- Economic nexus calculations encompass both taxable and non-taxable sales.
- Should a business meet the economic nexus thresholds, it is required to register for a sales tax permit promptly and commence collecting sales tax from Pennsylvania customers with immediate effect.
Understanding the nexus status of your business in Pennsylvania is essential for ascertaining your obligations regarding sales tax collection. If uncertain about your nexus status, seeking guidance from a tax professional like Yonda Tax is highly recommended.
Services
- While most services themselves aren’t subject to taxation in Pennsylvania, there are exceptions. Services directly related to the sale of tangible personal property, with the service charge included in the sales price, may render the entire sale taxable.
Goods
- The majority of tangible personal property sold in Pennsylvania is taxable, encompassing common items like furniture, sporting goods, and electronically delivered prewritten computer software.
- However, specific exemptions exist, such as: certain unprepared food items (but not restaurant meals), prescription drugs and medical devices, and certain farm machinery and equipment.
Freight/Shipping
- Shipping and transportation charges separately listed on the invoice, not included in the product’s sales price, are generally exempt from taxation in Pennsylvania.
- Conversely, if shipping and transportation charges are integrated into the product’s sales price without separate itemization, they are considered taxable alongside the product itself.
Clothing
- Most clothing is exempt from sales tax.
- Exemptions: fur clothing, formal or evening clothes and sports clothes. Formal day or evening apparel.
Electronics
- Electronics are subject to sales tax
SaaS
- SaaS is taxable in Pennsylvania.
Digital Products
- Downloaded digital products like ebooks, audiobooks, and music intended for personal use are subject to sales tax in Pennsylvania.
Software
- Electronically delivered prewritten computer software is deemed tangible personal property and is thus taxable.
How to register for sales tax in Pennsylvania
If you’ve determined you need to collect sales tax in Pennsylvania, registering for a Sales Tax Account is the next step. Here’s how you can do it:
- Online Registration:
The Pennsylvania Department of Revenue (DOR) offers online registration through their myPATH system ([invalid URL removed]). This is generally the fastest and most convenient method. Here’s what you’ll need:
- Business name and address
- Contact information (phone number and email)
- Federal Employer Identification Number (EIN)
- Business activity start date
- Projected monthly sales and taxable sales
- Products or services offered
- Mail-in Registration:
If online registration isn’t an option, you can also register by mail using an application form (PA-100 Business Entity Tax Registration).
- Download the Pennsylvania Business Entity Tax Registration (PA-100) form from the Department of Revenue website.
- Complete the form following the instructions provided. The form will ask for the same information required for online registration.
- Mail the completed application form along with any required documentation (such as a copy of your EIN paperwork) to the address listed on the form.
Whichever method you choose, make sure to have all the necessary information readily available to ensure a smooth registration process.
Additional Notes:
- You may be required to file a surety bond along with your application, depending on your business type and projected sales tax liability. You can find information on surety bond requirements on the DOR website.
- Once your application is approved, you’ll receive a Sales Tax Account number. You’ll need this number to collect and report sales tax.
For more detailed information and specific instructions, visit the Pennsylvania Department of Revenue website or contact them directly.
How to Collect Sales Tax in Pennsylvania
Once you’ve registered for a Sales Tax Account and received your account number in Pennsylvania, here’s what you need to know about collecting sales tax:
- Determine the Tax Rate:
The sales tax rate in Pennsylvania is a combination of a statewide base rate and potential additional local rates. The base rate is currently 6%. However, many counties and municipalities in Pennsylvania impose additional local sales taxes on top of the base rate.
- Apply the Tax Rate:
Once you know the applicable tax rate (statewide base rate + any local rates), simply add it to the taxable sales price of your goods or services to determine the amount of sales tax to collect from the customer.
- Keep Good Records:
It’s crucial to maintain accurate records of your sales and sales tax collected. These records are essential for filing sales tax returns and during any potential audits by the Department of Revenue. Your records should include:
- Sales receipts
- Tax rates applied
- Amount of sales tax collected for each transaction
- Details of exempt sales
- Report and Remit Sales Tax:
We’ll cover reporting and remittance of sales tax in a separate section, but for now, focus on collecting the correct sales tax amount based on your location and product/service taxability.
How to get a sales tax permit/license in Pennsylvania?
To obtain a sales tax permit in Pennsylvania, first determine if your business needs one, which generally includes selling taxable goods, services, or digital products. Gather necessary information such as your business name, Federal Employer Identification Number (FEIN) or Social Security Number (SSN), business type, and NAICS code.
Apply online through the Pennsylvania Department of Revenue’s PA-100 system. After completing the application, you will receive your sales tax license, which must be displayed at your business location. Ensure you collect sales tax on taxable transactions and file returns regularly with the Department of Revenue to maintain compliance.
When are Pennsylvania’s sales tax returns due?
Sales tax return deadlines in Pennsylvania depend on your assigned filing frequency (monthly or quarterly) and the last day of the month your account became active.
- Monthly: Returns are due on the 20th day of the month following the end of the reporting period. For example, the return for July is due by August 20th.
- Quarterly: Returns are due on the 20th day of the month following the end of the quarter. For example, the return for the first quarter (January-March) is due by April 20th.
- Annually: Returns are due on the 20th day of the month following the end of the calendar year. For example, the return for the year 2023 is due by January 20, 2024.
If the due date falls on a weekend or holiday, the return is due the next business day. Always check the Pennsylvania Department of Revenue’s website for any updates or changes to the deadlines.
Is anyone exempt from sales tax in Pennsylvania?
Yes, Pennsylvania provides several exemptions from sales tax. Some key exemptions include:
- Certain Sales:
- Purchases made by federal government agencies are generally exempt.
- Items purchased for resale, rather than personal use
- Types of Goods and Services:
- Most food and beverages for human consumption are exempt, though there are exceptions (e.g., prepared foods).
- Most clothing items
- Prescription medications and certain medical devices are exempt.
- Services such as educational, medical, and certain personal services are exempt.
- Nonprofit Organizations:
- Purchases made by certain nonprofit organizations may be exempt, but the organization must provide proof of their exempt status.
- Agricultural Items:
- Items used directly in farming operations, such as feed and fertilizer, are often exempt.
Do I Have to Collect Sales Tax from Pennsylvania Customers if I Sell on Amazon, Walmart, Ebay, or Etsy?
No.
That’s because Pennsylvania has a marketplace facilitator tax law, which means that marketplaces like Walmart or Amazon collect sales tax on behalf of 3rd party sellers on their platforms.
If you have a sales tax nexus in Pennsylvania, remember that you must collect sales tax on your other non-marketplace Pennsylvania sales.
