As an e-commerce seller, you will need to collect sales tax in Pennsylvania if you have:
(1) $100,000 in annual retail sales in Pennsylvania (economic nexus), or
(2) Physical presence in Pennsylvania (physical nexus).
Below, we will highlight some of the basic provisions of Pennsylvania sales tax law.
What is the tax rate range for Pennsylvania?
State: Pennsylvania’s general sales tax rate is 6%.
County: Allegheny County’s rate is 1%.
City: Philadelphia’s rate is 2%.
See Pennsylvania Department of Revenue - Sales Tax for more information.
Do you have physical or economic nexus in Pennsylvania?
Physical nexus. Certain business activities create physical nexus in Pennsylvania. If you have physical nexus, you are required to collect and remit sales tax on all taxable sales that are shipped to Pennsylvania. Examples of business activities that can create physical nexus in Pennsylvania include:
- Having an office of place of business
- An employee present in the state
- Inventory or goods in a warehouse
- Delivery of merchandise in the state
- Business representatives in the state
- Leasing property in Pennsylvania
Economic nexus. Pennsylvania recognizes economic nexus for any vendor with $100,000 or more in gross sales into the state in the previous calendar year. Sales through all channels, including marketplace providers, are included. Once you have economic nexus established, you will be obligated to collect sales tax from buyers in the state beginning no later than April 1.
What are examples of sales of taxable items?
- Tangible personal property, unless an exemption applies
- Digital goods
- Software as a Service (SaaS)
What are examples of sales of nontaxable/exempt items?
- Food that is not “ready-to-eat"
- Candy & gum
- Most clothing
- Pharmaceutical drugs
Are there any sales tax holidays?
Pennsylvania does not currently recognize any scheduled sales tax holidays.
Is Pennsylvania a member of the SST (Streamlined Sales Tax)?
Currently, Pennsylvania is not a full or associate member of the Streamlined Sales Tax Governing Board (SSTGB).
Pennsylvania has, however, entered into contracts with and certified various service providers, including TaxCloud, and will provide liability relief to sellers using those providers. Certified Service Providers
How to get a sales tax permit / links to register in this state?
You can register online at: Pennsylvania myPATH - Sales Tax Permit.
If you use a Certified Service Provider, such as TaxCloud, you will not need to register in the state.
For more information on Pennsylvania rates, see: Pennsylvania Sales, Use and Occupancy Tax Page.