The Pennsylvania Department of Revenue recently released guidance regarding the local sales tax sourcing change which was enacted on July 12, 2026, with a retroactive effective date of tax years after December 31, 2025. Under the new rules sellers who are already required to collect and remit the Pennsylvania 6% sales tax are required to collect and remit Philadelphia’s 2% local sales tax and Allegheny County’s 1% local sales tax on taxable sales made to purchasers in those respective localities.
However one important change highlighted in the this guidance details that the department will not begin enforcing these changes until October 1, 2026. For more information click here.
