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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4/1/2018 and 4/1/2019 – repealed effective 6/30/2019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.

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 Stating Free Restaurant Meals are Not Taxable.

The Pennsylvania Department of Revenue recently issued Legal Letter Ruling No. SUT-05-004, which stated that free meals provided by a restaurant to its employees or patrons were not subject to sales and use tax. The Department of Revenue concluded that…

Pennsylvania Issues Letter Ruling Stating Purchases of Stadium Turf by a College are Exempt from Tax.

The Pennsylvania Department of Revenue recently issued a letter ruling stating that a college qualifying as a purely public charity is not liable for sales and use tax on a contract for the purchase and installation of an artificial playing…

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…

Pennsylvania Issues Bulletin on VOIP Services.

In a recent sales tax bulletin, the Pennsylvania Department of Revenue has stated that Voice Over Internet Protocol (VOIP) services are subject to Pennsylvania state and local sales taxes. The VOIP service is such that it falls under the statutory…

Pennsylvania Clarifies Taxability of Contractor’s Purchases for a Federal Government Contract.

The State of Pennsylvania has issued a Letter Ruling clarifying that a contractor’s purchase of building machinery and equipment used in conjunction with a Federal Government contract are exempt from tax. The Letter Ruling defined that the term building machinery…

Pennsylvania Provides Guidance On Call Center Credit.

The Pennsylvania Department of Revenue has issued a sales tax bulletin offering guidance on the state sales and use tax credit available to call centers. According to the bulletin, the credit is for gross receipts taxes paid by a telephone…

Pennsylvania Discusses Taxability of Items Used in School Construction.

In a new ruling, the Pennsylvania Department of Revenue discusses the items used in construction of public schools that are exempt from sales tax. They state in the release that building equipment and machinery are exempt when applied to a…

Nursing services not subject to Pennsylvania sales tax.

A taxpayer’s subsidiary provided temporary nursing services exclusively for six of the taxpayer’s nursing homes and long-term care facilities. The subsidiary’s employees also received benefits from the taxpayer. The Department of Revenue declared that, though the sale at retail of…

Amount of allowable revenue for purely public charities increased in Pennsylvania.

Pennsylvania law states that the Department of Revenue should use a maximum revenue amount of $10, 615, 201.00 as the benchmark whereby a charity is considered exempt from sales and use tax, effective July 1, 2004. Previously the revenue benchmark…

Pennsylvania nonprofit electric cooperative corporations do not owe tax under the Pennsylvania Public Utility Realty Tax Act (PURTA).

The Pennsylvania Commonwealth Court reversed the decision made by the Pennsylvania Board of Finance and Revenue that these nonprofit electric cooperative corporations were subject to PURTA. A key phrase in PURTA reads, “furnishing public utility service.” Despite multiple technical issues…

Pennsylvania auditors have been given the authority to grant credits when it is found that the taxpayer has overpaid taxes.

For assessments issued on or after November 19, 2003, an auditor may grant a credit for overpayments. If the taxpayer believes that tax has been overpaid during the period under audit and the auditor will not grant a credit, the…

Pennsylvania taxes cellular service providers.

The Pennsylvania Supreme Court determined that cellular telecommunications providers did not qualify for the sales/use tax exemption provided for manufacturers or public utility providers because the cellular providers did not produce “tangible personal property.” The providers converted sound waves into…

Pennsylvania case declares audit assessment to include overpayments.

A sales and use tax audit performed on purchases made for the period of 1991 to 1994 disallowed any overpayments in its calculation, stating that the overpayment claims were not filed within the three-year statute. The taxpayer’s request for a…

Pennsylvania asphalt materials may be taxable.

Stone and oil used in the product of asphalt are taxable if the asphalt is used for contracts with the state for highway improvements. In most cases a manufacturing exemption would be applicable since the stone and oil and being…

Equipment regarded as taxable in Pennsylvania.

A Pennsylvania manufacturer contested that their equipment, used at their distribution facility, was essential in the production of its product and that the equipment met the criteria for classes of equipment to which the exemption applies, so therefore should qualify…