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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.