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PennsylvaniaSales Tax

A Complete Guide For Businesses

Automate My PennsylvaniaSales Tax Filings

State Rate
6.00%

Local Tax
yes

Phone
(717) 787-1064

General requirements

Pennsylvania is an origin-based state (sales are taxed where the seller is located).

  • Sales tax is charged on the retail sale, consumption, rental or use of tangible personal property (TPP) including digital products in Pennsylvania.
  • The tax is also charged on certain services relating to such property and on the charge for specific business services
  • Major items exempt from the tax include food (not ready-to-eat), candy and gum, most clothing, textbooks, computer services, pharmaceutical drugs, and sales for resale

All businesses registered to collect and pay the state sales tax must file a sales tax return (PA-3) each reporting period, even if you don’t owe tax during the period. The two ways to pay the tax and file your return with the State are:

Rates

The Pennsylvania sales tax rate is 6%.

By law, a 1% local tax is added to purchases made in Allegheny County, and a 2% local tax is added to purchases made in Philadelphia.

How food is taxed

Prepared food sold in restaurants is taxed at the full state and local rate, while not-ready-to-eat food is exempt.

Nexus in Pennsylvania

A business is considered to have established a tax presence in the state if it:

  • Has a business presence in the state including office or warehouse
  • Employs salespeople or other representatives
  • Maintains inventory in the state

Remote seller activity constituting nexus in the state:

  • Using a fulfillment or distribution center in the state
  • Having a sales or marketing relationship with an individual or business located in the state
  • Shipping orders to Pennsylvania customers from a Pennsylvania facility operated by an affiliate or contractor of a seller
  • Having an affiliate relationship with an individual or business located in the state where orders are received or sales made through a website

Find more information about nexus in Pennsylvania.

Filing schedule

The discount for filing and paying on time equals the lesser of $25 or 1% of tax collected for a monthly filer, $75 or 1% of tax collected for a quarterly filer, and $150 or 1% of tax collected for a semi-annual filer.

The filing schedule is found here. Generally, returns are due between the 20th-22nd of the month following the end of the filing period. Filing periods are monthly, quarterly, or semi-annual.

Registering to collect sales tax in Pennsylvania

You can register for a Sales and Use Tax License using Form PA-100 online.

Within 24-48 hours you’ll receive an email confirmation of your business account information, provided that you entered a valid email address on the application. If you don’t provide an email address, the account information will be mailed in 7 to 10 business days.

Other ways to obtain a PA-100 application:

  • Print a copy of the paper Form PA-100
  • Call 1-888-PATAXES, select the Forms Ordering Message Service for fax or mailing of the PA-100. TDD # (717) 772-2252
  • Visit your local District Office
  • Send a written request to: PA Department of Revenue, Tax Forms Service Unit, 711 Gibson Blvd., Harrisburg, PA 17104-3200

Penalties

Penalties and interest are charged on taxes filed and/or paid after the due date. Generally, you will be charged a 5% per month penalty plus interest. Use the penalty and interest calculator to determine the exact charge.

See how easy it is to automate your sales tax filings.

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