Guide to Sales Tax in Pennsylvania in 2025

Whether you’ve fully set up shop in Pennsylvania, or simply ship there once in a while, it’s important you know whether your business is liable to their sales taxes. In our 10+ years of experience helping online businesses comply with taxes, we’ve found that tax policies are confusing. So we translated all the information from Pennsylvania Department of Revenue's official sales tax laws into language that’s easy to understand.

This guide will tell you everything you need to know, plus direct you to the right places for handling any sales tax responsibility you may have.

What’s taxable in Pennsylvania?

In Pennsylvania, most types of goods where a physical product is transferred are taxable. Below is an overview of products that are generally taxable in Pennsylvania. Some local cities or districts might have their own rules or exceptions, however. For example, check out the Philadelphia Sales Tax Guide for specific rules in the city.

• Tangible personal property: These are physical items. Pennsylvania taxes most tangible products.
• Digital goods: These are generally taxable in Pennsylvania.
• Software as a service (SaaS): Pennsylvania does tax SaaS products.

To be absolutely clear about which products are subject to sales tax, and which are exempt, check the Pennsylvania Department of Revenue website.

What are non-taxable items in Pennsylvania?

Pennsylvania has several sales tax exemptions. Here are a few examples of non-taxable items that you don’t need to charge PA sales tax on:

• Most non-prepared food items
• Candy & gum
• Most clothing (with some exceptions)
• Items purchased with food stamps
• Prescription drugs
• Many services

Pennsylvania also exempts certain types of organizations from Pennsylvania sales taxes like government agencies, some nonprofit organizations, and merchants purchasing goods for resale, via exemption certificates.

What is the Pennsylvania food tax?

The Pennsylvania food tax is a sales tax exemption on most non-prepared food and grocery item purchases. However, there are some kinds of food items that don’t qualify for this exemption.

Examples of food that generally qualify for the Pennsylvania food tax exemption:

• Most groceries
• Non-prepared food items
• Candy & gum

Examples of food that generally doesn’t qualify for the Pennsylvania food tax exemption:

• Prepared food
• Hot prepared food
• Soft drinks
• Alcoholic beverages

See the Pennsylvania Sales and Use Tax Liability Lists for a more detailed breakdown of which food items qualify for the exemption and which do not.

What is Pennsylvania’s clothing sales tax?

Pennsylvania generally exempts most clothing from sales tax. However, there are some exceptions, such as certain accessories or formal wear. Learn more about Pennsylvania clothing sales tax and other Pennsylvania sales tax exemptions.

Do you have sales tax nexus in Pennsylvania?

The word “nexus” refers to a commercial connection in the state. Nexus determines the following questions for a state tax agency: Do you do business here, what kind, and how much? And when you do have nexus, that means you’re obligated to collect tax on your sales there. So the first question for you to answer is whether you have nexus in Pennsylvania.

Pennsylvania physical nexus

Pennsylvania economic nexus

• A significant amount of sales in Pennsylvania within twelve months. This is called an economic nexus, a sales tax nexus determined by economic activity, i.e. – the amount of sales you make in a particular state, not including sales through a marketplace.
• The threshold in Pennsylvania is $100,000 of gross sales in the previous 12 months. Marketplace facilitators and marketplace sellers with no physical presence in Pennsylvania should use both facilitated and direct sales to determine if the threshold has been met.

To learn more about how this works, check out the Ultimate Guide to US Economic Nexus.

Non-collecting seller use tax notice and reporting requirements

Pennsylvania requires marketplace facilitators, remote sellers, and referrers that make more than $10,000 in taxable sales to Pennsylvania customers during the prior 12-month period to make an election to either:

• Register to collect and remit sales tax, or
• Comply with use tax notification and reporting requirements for non-collecting sellers.

Once economic nexus takes effect (July 1, 2019), marketplace facilitators and sellers who made over $100,000 in Pennsylvania sales will no longer have the option to comply with non-collecting seller use tax notification and reporting requirements rather than register and collect. Instead, they’ll be required to comply with Pennsylvania sales and use tax laws.

Sales tax rates in Pennsylvania

Tax rates can vary based on the location of your business and the location of your customer, plus the levels of sales tax that apply in those specific locations.

The base Pennsylvania state sales tax is 6%. There are additional levels of sales tax at local jurisdictions, too. The total Pennsylvania sales tax rate a customer will pay is made up of two rates:

• A base Pennsylvania state sales tax of 6%
• Additional district Pennsylvania sales tax rates, such as 1% in Allegheny County and 2% in Philadelphia.

Currently, combined sales tax rates in Pennsylvania range from 6 percent to 8 percent, depending on the location of the sale.

Here are some examples of the tax being charged in different locations:

• Allegheny County sales tax: 7%
• Philadelphia sales tax: 8%

Check out Quaderno's Sales Tax Calculator to see your product's tax rate, amount, and final price in Pennsylvania.

How to calculate sales tax in Pennsylvania

Pennsylvania uses a modified origin-based sales tax system. For a Pennsylvania-based seller, sales and use tax is generally based on the location of the seller. However, sales from an out-of-state vendor to a Pennsylvania consumer (interstate sales) are generally sourced to the location where the consumer receives the property. Add the applicable tax to the price of your product, and collect the full payment.

How does Pennsylvania sales tax work with marketplaces?

Marketplaces in Pennsylvania are required to collect, report, and pay the tax on sales via their marketplaces. Marketplace sellers are, therefore, not required to pay taxes on what they sell through a marketplace. Here are some special rules that apply to marketplaces in Pennsylvania:

• Taxable and nontaxable sales are counted towards a marketplace facilitator’s economic nexus.
• Marketplace sellers must count the sales made through marketplaces towards their economic nexus even if they don’t have to pay taxes on those sales.
• Marketplace sellers are not required to register for economic nexus if all their sales are made via a marketplace.

See the Pennsylvania Department of Revenue, Online Retailers page for more information.

Sales tax on shipping charges in Pennsylvania

Pennsylvania does apply sales tax to shipping costs. Delivery charges are considered part of the sales price in Pennsylvania. That means the taxability of shipping charges depends on the contents of the shipment.

Generally, charges to prepare and deliver taxable tangible personal property to a location designated by the consumer are taxable in Pennsylvania. This is true even if the delivery charges for taxable goods are separately stated.

Charges associated with the delivery of exempt goods are generally exempt. If a shipment contains both taxable and exempt goods, the shipping and handling charges for the entire shipment are subject to tax.

The Pennsylvania Department of Revenue recommends keeping clear invoices and records for all transactions, with specific terms to describe delivery-related charges.

How to register for a Pennsylvania sales tax license

Remote sellers can register online for sales tax in Pennsylvania through an account with Pennsylvania myPATH, an online tax portal. (This portal is also where you’ll file and pay your tax returns. For information on how to file, check out this Pennsylvania sales tax filing guide.)

Note: The Pennsylvania Online Business Entity Registration (PA-100) has been replaced with myPATH's "Pennsylvania Online Business Tax Registration" service.

Start on the Pennsylvania myPATH website and follow the instructions to register your business.

Be prepared to share the following information:

• Your Employer Identification Number (EIN) if you have one.
• The date of your first sale in Pennsylvania
• The names of Pennsylvania counties where your customers live

How to sign up for MyPath

1. Go to the Pennsylvania myPATH website. Under the log-in section, click “Sign Up.”

2. On the next window, simply click “Next.”

3. On this window, review the Electronic Correspondence and Communications Agreement and finally check the box to confirm you agree to the terms. Then click “Next.”

4. Now create login information for your account. Choose an email address, a password, and enter your phone number.

In the Identification field, select “No,” then provide Federal Employer ID, also known as the EIN. Learn more about the EIN here.

5. Check the email you provided to sign up. In your email, you’ll find a confirmation code that you must use to log into your new account for the first time. As an extra security measure, myPATH will also ask you to set up two-factor authentication.

6. Once your account is created, you will be assigned an 11-digit Account ID.

Note: Once you receive your sales tax license, you’ll receive another 8-digit number that is your License ID. Both of these are important.

How to apply for a sales tax license in PA

1. In your myPATH account dashboard, click on the “Pennsylvania Online Business Tax Registration” service.

2. Select to apply for a “Pennsylvania Sales, Use and Hotel Occupancy Tax License.”

3. Follow the steps and fill out the required information about your business, products and customers.

4. At the very end, you’ll have a chance to review all the information you’ve provided and make sure it’s correct. Then, finally, you can submit! You’re done!

5. You will receive your sales tax license number by email in about 3 business days. This is an 8-digit License ID that you should keep on file. The actual license will be mailed in 7 to 10 business days.

Note: You are required to renew your sales tax permit every 5 years, and you do that online.

Once you’re registered for sales tax in PA, you’ll also be assigned a tax filing frequency: monthly, quarterly, or semiannually.

Sales tax guides for other states

• Alabama Sales Tax Guide
• Alaska Sales Tax Guide
• Arizona Sales Tax Guide
• Arkansas Sales Tax Guide
• California Sales Tax Guide
• Colorado Sales Tax Guide
• Connecticut Sales Tax Guide
• Delaware Sales Tax Guide
• Florida Sales Tax Guide
• Georgia Sales Tax Guide
• Hawaii Sales Tax Guide
• Idaho Sales Tax Guide
• Illinois Sales Tax Guide
• Indiana Sales Tax Guide
• Iowa Sales Tax Guide
• Kansas Sales Tax Guide
• Kentucky Sales Tax Guide
• Louisiana Sales Tax Guide
• Maine Sales Tax Guide
• Maryland Sales Tax Guide
• Massachusetts Sales Tax Guide
• Michigan Sales Tax Guide
• Minnesota Sales Tax Guide
• Mississippi Sales Tax Guide
• Missouri Sales Tax Guide
• Montana Sales Tax Guide
• Nebraska Sales Tax Guide
• Nevada Sales Tax Guide
• New Hampshire Sales Tax Guide
• New Jersey Sales Tax Guide
• New Mexico Sales Tax Guide
• New York Sales Tax Guide
• North Carolina Sales Tax Guide
• North Dakota Sales Tax Guide
• Ohio Sales Tax Guide
• Oklahoma Sales Tax Guide
• Oregon Sales Tax Guide
• Rhode Island Sales Tax Guide
• South Carolina Sales Tax Guide
• South Dakota Sales Tax Guide
• Tennessee Sales Tax Guide
• Texas Sales Tax Guide
• Utah Sales Tax Guide
• Vermont Sales Tax Guide
• Virginia Sales Tax Guide
• Washington Sales Tax Guide
• Washington, D.C. Sales Tax Guide
• West Virginia Sales Tax Guide
• Wisconsin Sales Tax Guide
• Wyoming Sales Tax Guide