Pennsylvania sales tax is 6%. By law, an extra 1% local tax applies in Allegheny County and an extra 2% applies in Philadelphia, so buyers there pay 6% plus 1% or 6% plus 2%. Food that isn't ready to eat and most clothing are exempt.
That makes Pennsylvania one of the simplest rate maps in the country: three possible rates, not hundreds. The work is in the exemptions and the licence you register for. This guide uses the Pennsylvania Department of Revenue's sales, use and hotel occupancy tax pages, read in October 2026.
The three Pennsylvania rates
| Where the sale happens | State | Local | Total (as of October 2026) |
|---|---|---|---|
| Most of Pennsylvania | 6% | None | 6% |
| Allegheny County | 6% | 1% | 7% |
| Philadelphia | 6% | 2% | 8% |
What's taxed and what isn't
The tax applies to the retail sale, consumption, rental or use of tangible personal property, including digital products. It also applies to certain services connected with that property and to charges for specific business services. The Department lists major exemptions, including:
- Food that isn't ready to eat, so groceries rather than restaurant meals.
- Candy and gum.
- Most clothing.
- Textbooks.
- Pharmaceutical drugs.
Notice the digital products point. Plenty of sellers assume downloads and online products sit outside sales tax, and in Pennsylvania they don't. Course creators, template sellers and anyone selling files to Pennsylvania buyers should check this first.
Which Pennsylvania licence you need
| Licence or certificate | Who needs it |
|---|---|
| Sales, Use and Hotel Occupancy Retail Tax License | Businesses making taxable retail sales |
| Booking Agent License | Anyone renting out a home, room or apartment to guests for fewer than 30 days, on top of the retail licence |
| Promoter License | Anyone running a show where space is rented for selling taxable goods or services; register at least 30 days before the first show and renew every year |
| Wholesale Certificate | Businesses that only sell to retailers |
| Transient Vendor Certificate | Sellers registering as transient vendors |
All of them are registered through the Pennsylvania Online Business Tax Registration on myPATH.
The short-term rental trap
Here's the rule people miss. A booking agent handling stays of fewer than 30 days needs two licences, not one, to collect hotel occupancy tax: the retail licence first, then the booking agent licence. And the booking agent return must be filed even for periods when no taxable bookings happened. Pennsylvania applies the same principle to ordinary returns: they're filed whether or not taxable sales took place.
Use tax
Use tax is charged at the same rate as sales tax on taxable purchases used in Pennsylvania when no sales tax was paid to the seller, for example goods bought out of state. Businesses often owe it on equipment and supplies.
- Pull every invoice where a seller charged no Pennsylvania tax.
- Take out anything you bought to resell, which a resale exemption covers.
- Apply the rate for where the item is used: 6%, or 6% plus the Allegheny County or Philadelphia local tax.
- Report the total as use tax on your return for that period.
Buying for resale: the wholesale side
A business that only sells to other retailers registers for a Wholesale Certificate instead of a retail licence. Once you give a supplier a Pennsylvania Exemption Certificate, form REV-1220, it can be used for all your future tax-exempt purchases from that supplier, and it must show your Account ID. It isn't valid for things the business uses up itself, only for items it resells.
Pennsylvania sales tax by type of business
| Business | What the rules mean for you |
|---|---|
| Cafe or takeaway | Ready-to-eat food is taxable; groceries that aren't ready to eat are exempt |
| Clothing shop | Most clothing is exempt, so check the exceptions for the lines you stock |
| Bookshop | Textbooks are exempt |
| Online seller of downloads | Digital products are taxable |
| Holiday let host | Hotel occupancy tax applies to stays of fewer than 30 days |
| Event organiser | A Promoter License is needed at least 30 days before the first show |
The Department also publishes separate guidance on digital goods, non-fungible tokens, home-sharing and third-party broker rentals, CBD and hemp products, consumer fireworks and local sales tax rules, plus a question-and-answer sheet on the sales tax discount. If your business sits in one of those areas, read that notice before you set up your till.
How returns are filed
Returns go in through myPATH, and Pennsylvania also runs myPATH Telefile, a toll-free phone service on 1-800-748-8299 for filing and paying. Either way, the rule is the same: every period gets a return, including one with no taxable sales. The Department also runs programmes for accelerated sales tax prepayments and a non-registrant programme, which are worth reading if you're a large seller or you've been selling without a licence.
Want AI doing the heavy lifting in your marketing?
I build the systems that handle the boring 80 percent, so you get your week back. Done properly, with the human kept in.
Getting it right, step by step
- Register on myPATH for the licence that matches what you sell.
- Set your rate by location: 6%, 7% in Allegheny County or 8% in Philadelphia.
- Mark exempt lines such as groceries, most clothing and textbooks in your till.
- File every return on time, including periods with no taxable sales.
- Accrue use tax on untaxed business purchases.
If you hire there, my guide to pay frequency rules covers how often staff must be paid. Buying stock to resell? Use a resale certificate.
My verdict
Pennsylvania is kind to sellers on rates: 6% nearly everywhere, 7% in Allegheny County and 8% in Philadelphia. Spend your attention on the exemptions, register for the right licence, and file every return, even the empty ones. If you run holiday lets or events, the extra licences matter more than the rate, so sort those first.
Across the Delaware River, New Jersey has a single statewide rate plus half-rate zones, which the New Jersey sales tax page explains.
Frequently asked questions
What is the sales tax rate in Pennsylvania?
The state rate is 6% as of October 2026. Allegheny County adds 1% and Philadelphia adds 2%.
What is the sales tax in Philadelphia?
It's 8% in total: the 6% state rate plus a 2% local tax.
Is clothing taxed in Pennsylvania?
Most clothing is exempt from Pennsylvania sales tax, along with food that isn't ready to eat, candy and gum, textbooks and pharmaceutical drugs.
Are digital products taxable in Pennsylvania?
Yes. Pennsylvania sales tax applies to tangible personal property including digital products.
Is a Pennsylvania sales tax return needed with no sales?
Yes. The Department of Revenue says returns are filed whether or not taxable transactions took place in the period.
