Pennsylvania Local Sales Tax Calculations

To our understanding, Pennsylvania is an origin-based sales tax state. This means that if you have a physical location in Pennsylvania, sales tax should be collected based on where you, the seller, are located. 

The state tax rate for Pennsylvania is 6%, and there are only two locations in Pennsylvania that have an additional local tax rate: Allegheny County and Philadelphia. 

  • The local sales tax is imposed at the point of sale.
  •  A sale of property or a service delivered to a location within in PA is deemed to occur at the place of business of the retailer.
  • If this address is not in Alleghany County or Philadelphia the local sales tax is not collected. 
  • If the order's Ship To address is in Alleghany County or Philadelphia, the purchaser would pay use tax. The seller can choose to collect the local use tax. However, TaxJar calculations do not support this.
  • This means that the local tax rate will only apply if you have an Allegheny County or Philadelphia address listed in your Business Profile or State Nexus Settings and the order has a Ship To address in Pennsylvania.

Please note, if you do not have a physical location in Pennsylvania, you would only collect the state sales tax rate of 6% on all orders shipped to Pennsylvania. 

Why does your Sales Tax Calculator show this local 1% sales tax for all Pennsylvania addresses? 
  • We show this 1% in our free calculator tool so that sellers who have sales that are eligible for this added local tax are aware it exists.
  • Please note that the Sales Tax Calculator does not support nexus determination, sourcing, product tax-exemptions (or, product-specific reduced rates), or sales tax holidays.
    • If you need any of the above factors considered in your sales tax rates, we'd recommend using the SmartCalcs API.
  • If you are an out of state seller, then our API calculates accurately based on your Pennsylvania State Settings. 

We explain more about this in our Pennsylvania Sales Tax Guide and we offer supporting state documentation here.

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