Pennsylvania has a 6 percent sales tax on most goods
Pennsylvania charges a 6 percent sales tax on tangible personal property — things you can touch and take home. This applies to clothing, electronics, furniture, groceries at the checkout, and most other retail purchases. The tax is added at the register, so the final price you pay is higher than the sticker price.
Some counties and cities add their own local sales tax on top of the state rate. Philadelphia adds an additional 1.3975 percent, bringing the total to about 7.4 percent. Other municipalities may add smaller amounts. The total rate depends on where you make the purchase, not where you live.
Pennsylvania does not have a separate income tax on sales the way some states do. The 6 percent is the only state-level sales tax you owe, though local additions vary by location.
Key Takeaways
- Pennsylvania's state sales tax is 6 percent on most goods, with Philadelphia and some other localities adding an extra 1 to 1.4 percent.
- Groceries, prescription medications, and medical equipment are exempt from sales tax in Pennsylvania.
- Clothing and footwear under $110 per item are tax-free, but items over that threshold are taxed at the full rate.
- Services like haircuts, repairs, and professional fees are generally not subject to sales tax unless they involve a taxable product.
- Online purchases from out-of-state sellers may or may not include Pennsylvania sales tax depending on the seller's policies and nexus in the state.
What is exempt from Pennsylvania sales tax
Pennsylvania exempts several categories of goods and services from the 6 percent tax. Groceries and food items — bread, milk, vegetables, meat, and other items you buy at a supermarket — are not taxed. Prepared foods and restaurant meals are taxed, but raw ingredients are not.
Prescription medications and medical devices are exempt. This includes insulin, inhalers, hearing aids, and prosthetics. Over-the-counter medications like aspirin and cold medicine are taxed, but prescription drugs are not.
Clothing and footwear under $110 per item are tax-free. A shirt that costs $50 is not taxed. A coat that costs $150 is taxed on the full amount. This rule applies to individual items, so buying two $60 shirts means neither is taxed, but a single $120 jacket is fully taxable.
Newspapers, magazines, and certain printed materials are also exempt. Textbooks sold at schools and universities are not taxed when purchased through the institution.
Services and labor are usually not taxed
Most services — haircuts, plumbing repairs, car maintenance, accounting, legal information — are not subject to Pennsylvania sales tax. You pay the service provider's fee, but no sales tax is added on top.
The exception is when a service includes a taxable product. If a plumber fixes your pipe and charges you $200 for labor plus $50 for a new fitting, the $50 part of the bill may be taxed because it is a tangible good. The labor itself is not. Your plumber's invoice should show which portion is taxable.
Rental services — car rentals, equipment rentals, hotel rooms — are generally not subject to the 6 percent sales tax, though some localities may have separate hotel or rental taxes.
How local sales tax adds to the state rate
Pennsylvania allows counties and cities to add their own sales tax on top of the state 6 percent. Philadelphia's additional rate is 1.3975 percent, making the total about 7.4 percent. Other cities and counties have different rates or no local tax at all.
The local tax applies to the same goods and services as the state tax. If you buy a shirt in Philadelphia, you pay 7.4 percent total. If you buy the same shirt in Pittsburgh, you pay a different rate because Allegheny County has its own local tax structure.
You do not choose which rate applies — it is determined by the address where the sale happens. An online purchase shipped to your Philadelphia address is taxed at the Philadelphia rate, even if you ordered from a store in another county.
Online purchases and out-of-state sellers
Whether you owe Pennsylvania sales tax on an online purchase depends on whether the seller has nexus in Pennsylvania — a legal connection like a warehouse, office, or employees in the state. Large retailers like Amazon, Walmart, and Target have nexus in Pennsylvania and collect sales tax on orders shipped to Pennsylvania addresses.
Smaller sellers without a physical presence in Pennsylvania may not collect Pennsylvania sales tax at checkout. You are technically responsible for paying use tax — a tax on goods you buy out of state and bring into Pennsylvania — but it is rarely enforced for individual purchases. If you buy something from a small out-of-state seller and no tax is collected, you do not owe it unless you are a business.
The safest approach is to assume that major online retailers will collect the tax for you. If a seller does not, the purchase price is lower, but you should not count on that as a permanent discount.
What happens if you do not pay sales tax
Sales tax is collected by the seller at the point of sale, not by you directly. If you buy something at a store, the cashier adds the tax and you pay it. You do not file a separate form or send money to the state for each purchase.
If a seller fails to collect sales tax when they should have, that is the seller's responsibility, not yours. The Pennsylvania Department of Revenue pursues businesses that do not remit collected taxes, not individual shoppers.
The only situation where you might owe tax directly is if you buy something out of state, bring it into Pennsylvania, and the seller did not collect Pennsylvania tax. This is use tax, and it applies to the same rate as sales tax would. Again, enforcement is rare for individuals and focuses on large purchases or business transactions.
Frequently Asked Questions
Is clothing always tax-free in Pennsylvania?
No. Clothing and footwear under $110 per item are tax-free. Items over $110 are taxed at the full rate. A $50 shirt is not taxed, but a $150 coat is taxed on the entire $150.
Do I pay sales tax on groceries?
No. Raw groceries — produce, meat, dairy, bread, canned goods — are not taxed. Prepared foods like deli items, hot foods, and restaurant meals are taxed. The distinction is whether the food is ready to eat or requires preparation at home.
What is the sales tax rate in my city?
Pennsylvania's state rate is 6 percent. Philadelphia adds 1.3975 percent for a total of about 7.4 percent. Other counties and cities have different local rates. You can check your specific rate by entering your address on the Pennsylvania Department of Revenue website or asking a local retailer.
Do I owe sales tax on a used car?
Yes, but the rate and rules vary. Pennsylvania taxes the sale of used vehicles, though the calculation may be based on the sale price or the vehicle's assessed value depending on the transaction type. A licensed dealer handles the tax collection, so you do not pay it separately.
Are digital products like apps and e-books taxed?
Digital products are generally not subject to Pennsylvania sales tax. E-books, software, streaming services, and digital downloads are not taxed. Physical books and CDs are also not taxed in Pennsylvania.