General Sales Tax Rules
Pennsylvania has a 6% state sales tax. There is an additional 1-2% local tax, depending on the county. The sales tax applies to most goods but not services, food, clothing, or pharmaceuticals.
Businesses with over $100,000 in Pennsylvania sales or 200 transactions must collect sales tax. There is no fee to register for a sales tax license. A Federal Tax ID is required.
Sales tax is charged based on the store’s location. For online sales, the rate is based on the buyer’s location. PA has an origin-based tax system.
Out-of-state sales only require collecting PA sales tax if the seller has nexus (physical presence) in PA.
For assistance with licensing, filing returns, or paying taxes, contact the PA Department of Revenue. Support is available by phone and email. Consider using a sales tax automation service to simplify compliance.
How to Register for Sales Tax Collection in Pennsylvania
To collect PA sales tax, follow these steps:
- Register for a sales tax license in Pennsylvania by signing up on the Pennsylvania myPATH website.
- Ensure you have a Federal Tax ID Number (Employer Identification Number or EIN) to register.
- Apply online using PA Enterprise Registration Form (PA-100).
Once you have your sales tax license, begin to collect sales tax on taxable sales made in Pennsylvania and file regular sales tax returns.
How to Pay Sales Tax for Businesses
When it comes to remitting sales tax:
- Pay sales tax by phone or file returns online through the Department of Revenue.
- Charge 6% state sales tax plus any local taxes.
- Keep records of transactions and taxes collected.
- File returns and remit taxes on time to avoid penalties.
How do you calculate sales tax? The state-wide rate is 6%. Some counties or cities add more. Check the sales tax calculator to see rates by ZIP code.
Other taxes such as income, payroll, property, and more also apply, with rates and rules varying across Pennsylvania.