In this article
- What is sales tax in Pennsylvania?
- What is taxable in Pennsylvania?
- Exemptions and resale certificates in Pennsylvania
- Who must collect sales tax in Pennsylvania?
- Sales tax rates in Pennsylvania
- How to calculate sales tax in Pennsylvania
- How to register for a Pennsylvania sales tax permit
- Filing and payment in Pennsylvania
- Penalties and compliance risks in Pennsylvania
- How Quaderno helps with Pennsylvania sales tax
- Sales tax guides for neighboring states
Pennsylvania has a 6% state sales tax. Allegheny County adds 1% and Philadelphia adds 2%, bringing combined rates to 7% and 8% respectively. You must register if your annual sales into Pennsylvania exceed $100,000. SaaS and digital products are taxable in Pennsylvania.
Whether you sell software, physical goods, or digital content into the Keystone State, this guide covers everything you need to know — rates, taxability, nexus rules, registration, and filing.
What is sales tax in Pennsylvania?
Pennsylvania imposes a 6% statewide sales tax on most retail sales of tangible personal property and certain services. Only two jurisdictions add local taxes on top of the state rate: Allegheny County (home to Pittsburgh) adds 1%, and the City of Philadelphia adds 2%. All other Pennsylvania counties apply the flat 6% state rate.
Pennsylvania uses a modified origin-based sourcing rule: in-state sellers charge based on their business location, while remote sellers use destination-based sourcing.
What is taxable in Pennsylvania?
Pennsylvania taxes most retail sales of tangible personal property. Pennsylvania also taxes certain digital products and services, making it one of the more comprehensive states for digital good taxability. Always check with the Pennsylvania Department of Revenue for your specific product category.
Digital products and SaaS taxability in Pennsylvania
Pennsylvania taxes both SaaS and downloaded digital products:
- SaaS: Taxable. Pennsylvania treats cloud-based software and remote access to software as taxable digital services.
- Downloaded software: Taxable. Pennsylvania has taxed downloaded software for many years.
- Digital products (e-books, digital audio, digital video): Taxable. Pennsylvania extended its sales tax to these categories as digital delivery became common.
This broad taxability of digital goods and SaaS means Pennsylvania compliance is straightforward for software businesses: if you sell SaaS or digital content to Pennsylvania customers, it is taxable.
Sales tax on shipping charges in Pennsylvania
In Pennsylvania, separately stated, reasonable shipping and handling charges for taxable goods are generally not taxable. If shipping and handling charges are bundled into the price of the product rather than listed separately, they may be subject to tax. Always itemize shipping charges separately on your invoices.
Exemptions and resale certificates in Pennsylvania
Pennsylvania provides several notable exemptions. Key non-taxable items include:
- Clothing and footwear — exempt from Pennsylvania sales tax (a major exemption uncommon in most states)
- Most groceries and food for home consumption
- Prescription drugs and most medical equipment
- Agricultural equipment and supplies
- Manufacturing machinery and equipment
- Items purchased for resale, with a valid Pennsylvania Exemption Certificate (REV-1220)
- Sales to qualifying exempt organizations
See the Pennsylvania Department of Revenue for the current exemption certificate forms.
Who must collect sales tax in Pennsylvania?
Nexus is the legal connection between your business and Pennsylvania that creates a sales tax obligation. If you have nexus, you must register, collect, and remit sales tax on taxable Pennsylvania sales.
Economic nexus in Pennsylvania
You have economic nexus in Pennsylvania if your sales into the state exceed $100,000 in the previous twelve months. Pennsylvania uses a rolling twelve-month lookback period — not a calendar year — so you need to monitor your sales totals on an ongoing basis.
To learn more, see the Ultimate Guide to US Economic Nexus.
Physical nexus in Pennsylvania
| Type of nexus | Definition |
|---|---|
| Physical presence | Having a store, office, warehouse, distribution center, or other business location in Pennsylvania. |
| Employees or representatives | Having employees, agents, or contractors working on your behalf in Pennsylvania. |
| Inventory | Storing inventory in Pennsylvania, including through third-party warehouses or fulfillment centers. |
| Leasing property | Owning or leasing real or tangible personal property within Pennsylvania. |
| Delivery of goods | Regularly delivering goods into Pennsylvania using your own vehicles. |
Marketplace facilitator rules in Pennsylvania
Marketplace facilitators operating in Pennsylvania are required to collect, report, and remit sales tax on behalf of marketplace sellers. Sales through a qualifying marketplace do not count toward your $100,000 economic nexus threshold.
See our state-by-state guide to marketplace facilitator laws for more information.
Sales tax rates in Pennsylvania
Pennsylvania has a 6% state rate, with additional local taxes in two jurisdictions only.
How Pennsylvania sales tax is structured
| Jurisdiction | Rate | Notes |
|---|---|---|
| Statewide (all other counties) | 6% | Applies to all Pennsylvania counties except Allegheny and Philadelphia. |
| Allegheny County (Pittsburgh area) | 7% | 6% state + 1% Allegheny County local tax. |
| Philadelphia | 8% | 6% state + 2% Philadelphia local tax. |
Pennsylvania sales tax by city
Outside of Philadelphia (8%) and the Pittsburgh area in Allegheny County (7%), every other city and county in Pennsylvania applies the flat 6% state rate. Whether your customer is in Allentown, Erie, Harrisburg, or Lancaster, the rate is 6%.
Use Quaderno's Sales Tax Calculator to find the correct rate for any Pennsylvania address.
How to calculate sales tax in Pennsylvania
For remote sellers, Pennsylvania uses destination-based sourcing — check whether the customer is in Allegheny County, Philadelphia, or elsewhere.
Example: You sell a $200 SaaS subscription to a business in Pittsburgh (Allegheny County, 7%). Sales tax is $14, making the total $214.
Example: You sell a $150 SaaS subscription to a business in Philadelphia (8%). Sales tax is $12, making the total $162.
Example: You sell a $100 SaaS subscription to a customer in Harrisburg (6%). Sales tax is $6, making the total $106.
Use Quaderno's Sales Tax Calculator to look up the exact rate for any Pennsylvania address automatically.
How to register for a Pennsylvania sales tax permit
If your business has nexus in Pennsylvania, you must register before collecting sales tax. Register online through Pennsylvania myPATH, the Department of Revenue's official tax portal. Once registered, you can file returns and make payments through the same system.
For a step-by-step walkthrough of the registration process, see the Pennsylvania Sales Tax Registration Guide.
Filing and payment in Pennsylvania
How often do you file sales tax in Pennsylvania?
Pennsylvania assigns your filing frequency at registration based on your expected annual tax liability: monthly, quarterly, semi-annually, or annually.
When are Pennsylvania sales tax returns due?
Monthly filers generally submit by the 20th of the following month. Quarterly, semi-annual, and annual filers have different due dates. Check Pennsylvania myPATH for your specific schedule.
How to file and pay Pennsylvania sales tax
File and pay online through Pennsylvania myPATH. Pennsylvania requires a return for every assigned period — zero returns are required if you had no taxable sales.
For step-by-step filing instructions, see the Pennsylvania Sales Tax Filing Guide.
Penalties and compliance risks in Pennsylvania
Late filing or payment triggers penalties and interest. Common compliance risks in Pennsylvania:
- Applying the wrong rate to Philadelphia or Pittsburgh customers — only these two jurisdictions have local taxes.
- Treating SaaS or digital downloads as exempt — Pennsylvania taxes both.
- Misunderstanding the clothing exemption — clothing is exempt, but accessories and sports equipment may not be.
For penalty details, see the Pennsylvania Department of Revenue.
How Quaderno helps with Pennsylvania sales tax
Quaderno automatically calculates the correct Pennsylvania rate for every customer address — including the Philadelphia and Allegheny County rates — applies the right taxability rules for SaaS and digital products, and keeps your records organized. Stop worrying about compliance and focus on growing your business.
Sales tax guides for neighboring states
If you sell across the Mid-Atlantic or Northeast, you may have sales tax obligations in these states too.
Note: At Quaderno we love providing helpful information and best practices about taxes, but we are not certified tax advisors. For further help, or if you are ever in doubt, please consult a professional tax advisor or the tax authorities.