Does PA Have Sales Tax?

Sales Tax in Pennsylvania

  • Pennsylvania has a 6% state sales tax rate as of 2024.
  • Some counties and cities charge an additional local sales tax up to 2%, making the maximum possible combined sales tax 8%.
  • Groceries, clothing, prescription drugs, and non-prescription drugs are exempt from sales tax in Pennsylvania.
  • To start collecting sales tax, first obtain a sales tax license. There is no fee to register for a Pennsylvania sales tax license.
  • However, you need a Federal Tax ID Number (EIN) to register.

Tax Exemptions and Calculations

  • Exemptions in Pennsylvania include food not meant to be immediately consumed, most clothing, textbooks, computer services, pharmaceuticals, sales for resale, and residential heating fuels.
  • Use the PA sales tax calculator to estimate sales tax rates.
  • The sales tax formula is: Sales Tax Rate = Sales Tax Percent / 100. Sales Tax = List Price x Sales Tax Rate.

Sales Tax Details

  • Remote sellers with over $100,000 in Pennsylvania sales must collect and remit sales tax.
  • Pennsylvania sales and use tax must be filed and paid electronically.
  • Anyone making retail sales or leasing/renting tangible property in Pennsylvania must register for a sales tax license.

Pennsylvania Sales Tax Specifics

  • Pennsylvania has a statewide sales tax rate of 6%. Localities can add up to 2%, making the maximum possible rate 8%.
  • Philadelphia and Pittsburgh add a local tax on top of the state rate.
  • Food and clothing are exempt from the state sales tax.

Sales Tax Obligations

  • Amazon’s fulfillment centers in Pennsylvania create a sales tax obligation for sellers participating in the Fulfillment by Amazon (FBA) program.
  • Sellers who meet the nexus threshold are required to register for a Pennsylvania sales tax permit, collect sales tax on sales that ship into Pennsylvania, and remit sales tax to the state.

Pennsylvania Sales Tax Insights

  • Pennsylvania has a single, statewide sales tax which businesses are required to file and remit electronically.
  • The state sales tax in PA is just six percent, which is one of the lowest in the country.

Comparison to Other States

  • Almost every state in the country has a sales tax, with varying rates.
  • The only five states with no state sales tax are Alaska, Oregon, Montana, Delaware, and New Hampshire.

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