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Pennsylvania Sales Tax

On this page you will find handy sales and use tax information about Pennsylvania.

How to use this page:

We’ve pulled in the information from all our Charts for a consolidated view by state.  Here you can see the sales tax rates and if the state has remote seller nexus rules. You can also see any sales tax holidays or amnesty programs that may exist, though these do not apply to all states.

Below the chart you can find any News & Tip item we have published that relates to Pennsylvania that you can filter by topic. This will help you get informed on current and past legislation that has passed in the state.

State Sales Tax Rates
State Rate

6.000%
Range of Local Rates

0% – 2% Some local jurisdictions do not impose a sales tax.
Local Rates Apply to Use Tax

No
Remote Seller Nexus Rules
CLICK-THROUGH NEXUS

12/1/2011
AFFILIATE NEXUS

12/1/2011
REPORTING REQUIREMENTS

4/1/2018 and 4/1/2019 – repealed effective 6/30/2019
ECONOMIC NEXUS

4/1/2018 – TPP; 4/1/2019 – digital as alternative to Notice/Reporting

7/1/2019 – see state notice, see additional state notice
MARKETPLACE NEXUS

4/1/2018 and 4/1/2019

7/1/2019
Sales Tax Amnesty
Status

Inactive

Amnesty Filing Dates

April 21, 2017 - June 19, 2017

Go to Pennsylvania Amnesty Page
AMNESTY INCLUSION PERIODS

Taxes that are delinquent as of December 31, 2015.

TAX TYPES AND CONDITIONS

All taxes administered by the Pennsylvania DOR. More details.
AMNESTY BENEFITS

50% of interest and 100% of penalties waived.

Status

Inactive

Amnesty Filing Dates

April 26, 2010 - June 18, 2010

Go to Pennsylvania Amnesty Page
AMNESTY INCLUSION PERIODS

Any taxable period ending on or before June 30, 2009.

TAX TYPES AND CONDITIONS

Any taxes administered by the Department of Revenue; Post amnesty a 5% non participation penalty will be imposed on all unpaid tax, penalty and interest not paid during amnesty.
AMNESTY BENEFITS

All penalties and one-half of the interest due waived.

Status

Inactive

Amnesty Filing Dates

February 8, 2021 - June 8, 2021

Go to Pennsylvania Amnesty Page
AMNESTY INCLUSION PERIODS

Taxpayers that choose to participate in this program will not be liable for taxes owed prior to January 1, 2019.

TAX TYPES AND CONDITIONS

A 90-day Voluntary Compliance Program for any business that has inventory or stores property in Pennsylvania but is not registered to collect and pay Pennsylvania taxes.

Sales tax and income tax if there is inventory in the state for 2019 and 2020. Participants are required to complete the Physical Presence Business Activity Questionnaire (BAQ) to determine nexus. Once the BAQ is received by the DOR, they will complete a review and contact the business to discuss how to become compliant.
AMNESTY BENEFITS

Wavier of penalties and a limited lookback period.

Administration Information
Streamlined Sales Tax Status

Project State – Not Advisory
NUMBER OF TAXING AUTHORITIES

3 Sales Tax Jurisdictions
HOME RULE AUTHORITIES

N/A
Sales Tax Sourcing (Intrastate)

Origin
Sales Tax Return Due Date

The 20th of the month following the reporting period
Exemption Information
RESALE CERTIFICATE

Pennsylvania Resale Certificate
TYPES OF EXEMPTIONS

Product types of exemptions: food (not-ready-to-eat); candy and gum; most clothing; textbooks; computer services; pharmaceutical drugs; sales for resale; and residential heating fuels such as oil, electricity, gas, coal, and firewood

 

Entity types of exemptions: A nonprofit organization must file the proper application in order to obtain a sales/use tax exemption – not every entity that is a nonprofit or is exempt from federal tax purposes is entitled to the Pennsylvania sales/use tax exemption; qualifying government agencies; charities

 

Pennsylvania Exemption Certificate Forms
State Links
State Tax Web Page

Pennsylvania Department of Revenue
Rate Look-Up Page

Pennsylvania Sales Tax Rate Look-Up
Registration Link

Register for Pennsylvania Sales Tax
History & Fun Facts
HISTORY

U.S. sales taxes date back to at least 1821 when the Pennsylvania mercantile license tax was introduced. However, it was not a broad-based tax prevalent today.

 

The state’s modern rendition of Pennsylvania sales and use tax became effective March 7, 1956.
FUN FACTS
  • The Pennsylvania state-wide sales tax rate is 6 percent. By law, a 1 percent local tax is added to purchases made in Allegheny County, and a 2 percent local tax is added to purchases made in Philadelphia.
  • In addition to sales and use tax, Pennsylvania also has a hotel occupancy tax that is imposed at the same rate as the sales tax.

Internet Tax Freedom Act is Extended through December 11, 2014

President Barack Obama has signed federal legislation extending the Internet Tax Freedom Act through December 11, 2014.

Philadelphia Extends Current Sales and Use Tax Rates

Effective July 1, 2014, Philadelphia will add 1% to its sales and use tax rates. However, the current rate of 2% will decrease to 1% on June 30, 2014.

New Federal Digital Goods and Services Bill Proposed

Representative Lamar Smith (Republican, Texas) has introduced a bill to bar multiple taxes on digital goods and services. Smith had proposed an earlier bill which failed to pass. This bill is a revised version of the earlier bill. The proposed…

Federal Government Introduces New Remote Seller Bill

The federal Marketplace Fairness Act of 2013 was introduced in the House of Representatives and the Senate on February 14, 2013.

In-State Remote Access Software Taxable in Pennsylvania

Charges for the use of canned computer software hosted on a server and accessed electronically by a taxpayer’s customers and employees are subject to Pennsylvania sales and use tax if the end user is located in-state. Computer software is tangible…

Pennsylvania Amends Keystone Opportunity Zone Act

Pennsylvania Governor Tom Corbett has signed legislation amending the Keystone Opportunity Zone (KOZ), Keystone Opportunity Expansion Zone (KOEZ), and Keystone Opportunity Improvement Zone (KOIZ) Act. Effective immediately, the legislation authorizes the extension of tax exemptions, deductions, abatements, and credits; the…

Online Travel Company Not Liable for Philadelphia Hotel Tax

An online travel company (OTC) was not liable for Philadelphia hotel tax on the difference between the room rates it contracted with hotels and the room rates (including fees) it charged its customers because the OTC is not considered an…

Philadelphia Sets Dates for Amnesty Program

The Philadelphia Department of has set the dates for its tax amnesty program: May 3, 2010 to June 25, 2010. All taxes the city administers will be eligible except for sales and use tax, hotel occupancy tax, general acute care…

Philadelphia Amnesty Ordinance Signed

The City of Philadelphia has passed an ordinance authorizing a tax amnesty program which will occur over a 45 day period ending in June 2010, and overlap with the state amnesty program. During this period, delinquent taxpayers will be allowed…

Professional Employer Organization Services Not Taxable in Pennsylvania

A Professional Employer Organization’s (PEO) charges for providing certain human resources-related services (PEO Services) to clients through the placement the clients’ employees on the payroll of the PEO were found not subject to Pennsylvania sales and use tax. Pennsylvania imposes…

Pennsylvania DOR Issues 2010 Amnesty Guidelines

Pennsylvania has issued rules and guidelines for its upcoming tax amnesty program. The 2010 Tax Amnesty will apply to any taxes administered by the Department of Revenue and will run from April 26, 2010 to June 18, 2010. To participate,…

Pennsylvania Enacts Tax Amnesty for 2010

The Pennsylvania Department of Revenue has announced dates for its 2010 tax amnesty program. The tax amnesty period from will run from April 26 to June 18, 2010. During this time, the Pennsylvania Department of Revenue will waive all penalties…

Transfer in Connection with a Merger is Not Taxable in Pennsylvania

A transfer of delivery trucks at the time of a merger was nor subject to Pennsylvania sales and use tax. The transfer did not involve any consideration, which is a requirement in the definition of a sale at retail. Therefore,…

Food Sold by Pennsylvania Church During Community Festival Taxable

A reissue of a 2004 Letter Ruling clarifies that sales of food or beverages by a church are generally exempt from taxation…

Exempt Organization in Pennsylvania Must Collect Tax on Fundraiser

The Pennsylvania Department of Revenue decided that a taxpayer must collect sales tax on its 2008-2009 fundraisers because these sales activities are frequent and recurring, not isolated.

Pennsylvania Rental of Advertising Space Taxable

Customer fees paid to a lessor to display advertising materials in display cases and on phone boards are subject to Pennsylvania sales and use tax. The lessor’s charges are subject to tax because the charges are for a license to…

Wind Turbine Electricity Production Qualifies As Exempt Manufacturing in Pennsylvania

The generation of electricity through the use of wind turbines qualifies as manufacturing under the Pennsylvania tax law. In addition, machinery, equipment, parts, and foundations that are predominantly and directly used in the production or generation of electricity are exempt.…

Fuel to Heat Garage Qualifies for Pennsylvania Exemption

A homeowner\’s purchase of fuel oil used to heat a detached garage that housed the homeowner\’s vehicle was exempt from Pennsylvania sales and use tax.

Pennsylvania Isolated Sales Exemption Explained

In a recent Legal Letter Ruling, the Pennsylvania Department of Revenue has clarified the three “times/seven days” restriction of the isolated sales exemption from sales tax. The Department defines “isolated sale” as the infrequent sale of a nonrecurring nature made…

Pennsylvania Incentives Enacted for Strategic Development Areas

On November 20, 2006, Pennsylvania Governor, Edward Rendell, signed S.B. 854 which enacts numerous exemptions, abatements, and credits. Among the list of tax incentives, a sales and use tax exemption is granted for retails sales of services or tangible personal…

Pennsylvania Exempts Defibrillators and Related Accessories

Pennsylvania exempts defibrillators and related accessories from sales and use tax on the grounds that they alleviate physical incapacities. Therapeutic devices are “devices designed for the use of a particular individual to correct or alleviate a physical incapacity, and a…

Web-Based Services Not Subject to Sales/Use Tax in Pennsylvania

The Pennsylvania sales and use tax is applied primarily to those activities enumerated in Article II of the Tax Reform Code. The web-based service of providing exemption certificates for customer completion and other sales tax compliance services are not specifically…

No Tax On Free Meals In Pennsylvania

Pennsylvania restaurants that provide free meals to employees or patrons are not subject to sales and use tax. In addition, no use tax is due on restaurant purchases as long as the food is obtained from wholesalers, distributors, grocery stores…

Pennsylvania Issues Letter Ruling Discussing Purchases of Natural Gas and Machinery Used in Electricity Generation.

The Pennsylvania Department of Revenue recently issued a Legal Letter Ruling stating that a taxpayer’s purchase of natural gas, machinery, equipment, parts, and supplies qualifies for the manufacturing exclusion when used “directly and predominantly” in the production of electricity at…