Pennsylvania Sales Tax 2023 - 2024

Pennsylvania sales tax is a state-imposed levy on the sale of certain goods and services. It is a complex issue for online retailers, and understanding how it works within specific jurisdictions is crucial to maintaining compliance. In 2024, Pennsylvania’s combined state and local sales tax rate will be 6 percent, a decrease from last year. The state’s gas tax will be reduced as well, erasing an automatic increase that was set to occur in 2023. Pennsylvania sales and use tax rules are complex, and it is important to be aware of them in order to avoid unanticipated penalties and interest. The department’s sales tax manual and FAQs are good places to start.

• State sales tax: 6%
  • Local sales tax:1% in Allegheny County
  • 2% in Philadelphia
  • 0% in all other counties

How Does Pennsylvania Sales Tax Work?

Sales tax in Pennsylvania is administered by the Department of Revenue (DOR). Companies that sell taxable goods or services must register as a sales tax vendor and collect and report Pennsylvania sales tax on all applicable transactions. These vendors must have nexus in the state, which can be established by having physical presence or passing an economic threshold for sales in the state.

Once a business is registered and collecting sales tax, it must file returns with the DOR on a quarterly basis. These reports describe how much sales tax has been collected and remitted to the state. The DOR also enforces penalties and interest on late filings. These penalties are intended to encourage businesses to manage their taxes correctly. They can be costly and damage a company’s reputation. To help protect your business, use a trusted software solution to manage all of your sales tax compliance needs.

Items That Are Exempt From Pennsylvania Sales Tax

Here are some items that are exempt from Pennsylvania sales tax:

• Groceries
• Prescription drugs
• Medical devices
• Farm equipment
• Gasoline
• Natural gas
• Electricity
• Most services (such as haircuts, legal services, and dry cleaning)

You can find a complete list of sales tax exemptions on the Pennsylvania Department of Revenue website.

Pennsylvania Sales Tax Registration

Your filing frequency will be assigned in Pennsylvania when you register for your sales tax permit. You may be required to file monthly, quarterly, or semi-annual, depending on your sales volume. The state sales tax due date is typically the 20th of the month following your assigned period. The deadline is extended to the next business day if it falls on a weekend or holiday.