This blog was last updated on December 5, 2025
Pennsylvania imposes a statewide sales and use tax rate of 6%. The state allows local jurisdictions to levy additional sales taxes (specifically Allegheny County and City of Philadelphia). Staying compliant with Pennsylvania sales tax laws is essential for any business operating in the state. These laws define what goods and services are taxable, set the nexus standards, and outline exemption criteria.
What’s Taxable in Pennsylvania?
Pennsylvania sales and use tax applies to the sale of tangible personal property and certain enumerated services. Sellers selling taxable goods and/or services are required to collect and remit sales tax to the state.
Examples of taxable items include:
- Prewritten computer software
- Books
- Sporting goods and recreational equipment
- Installation Services
- Cosmetics and non-prescription personal care products
Sales Tax Nexus in Pennsylvania
Pennsylvania sales tax for businesses applies when a seller meets the state’s nexus requirements, which can be satisfied by having either a physical or economic presence.
PA: Physical Nexus
Physical presence is created by having a business location, office, warehouse, vehicle, employee, or other representative operating in the state of Pennsylvania.
PA: Economic Nexus
Pennsylvania enforces economic nexus for remote sellers. If your business has:
- Over $100,000 in sales in Pennsylvania during the preceding or current calendar year;
you may be required to register for and collect Pennsylvania sales tax.
Pennsylvania Sales Tax Exemptions
Certain products and services qualify for a Pennsylvania sales tax exemption, including most clothing, food, and sales to nonprofit organizations.
Exempt Products and Services
- Most services (unless Pennsylvania statutes specify otherwise)
- Clothing
- Food and food ingredients
- Drugs and medical supplies
- Prosthetic devices
Entity or Use Based Exemptions
Additionally, Pennsylvania exempts sales to certain entities from the sales/use tax, including the following:
- Certain qualified nonprofit entities
o 501(c)(3) organizations
o Churches and houses of religious worship
o Nonprofit schools, hospitals and homes for children and aged persons
- Certain wholesalers
- Retailers selling for resale
- Farmers
- S. Government
How to Claim Sales Tax Exemption in Pennsylvania
To claim an exemption, an entity must provide an exemption certificate with the sale. The Treasury accepts Form Rev-1220 as the most commonly used form. Additional guidance on acceptable exemption formats can be found in Sales Tax Exemption Application – FORM REV-72
Pennsylvania Filing and Remittance Requirements
Businesses must use the following Pennsylvania sales tax forms for filing:
- E-filing through Pennsylvania (My Path)
- Paper filing:
- o Form PA-3 (Sales and Use Tax Return)
Businesses required to make prepayments for sales, use and hotel occupancy tax by the 20th of each month and having an actual tax liability for the third quarter of the previous year of at least $25,000 but less than $100,000, now have two prepayment calculation options. The additional calculation option will allow businesses to adapt to monthly sales fluctuations while remaining compliant with the prepayment obligation. Businesses with an actual tax liability of $100,000 or more for the third quarter of the previous year cannot use the alternate calculation method.
Frequently Asked Questions
Does Pennsylvania have a sales tax holiday?
Currently, there are no Pennsylvania sales tax holidays, so all qualifying sales remain subject to tax throughout the year.
How does Pennsylvania sales tax apply to online sales?
Online retailers with nexus who sell taxable goods into Pennsylvania must collect sales tax based on the applicable rate at the location where goods are shipped.
Who is required to collect Pennsylvania sales tax?
Businesses with physical or economic nexus who make taxable sales in Pennsylvania are required to collect and remit Pennsylvania sales tax.
What is the current sales tax rate in Pennsylvania?
The current sales tax rate in Pennsylvania is 6%.
How to Register for a Pennsylvania Sales Tax License?
Pennsylvania businesses or individuals selling tangible personal property or certain services to Pennsylvania consumers may need to register to collect sales tax when meeting qualifying requirements.
Can you e-file in Pennsylvania?
Yes, Pennsylvania sales tax online filing can be submitted on Pennsylvania (My Path).
Additional Resources
For more information on U.S. sales tax compliance across all 50 states, check out our:
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