Pennsylvania's Sales Tax Rate and What It Covers
Pennsylvania charges a 6 percent sales tax on most goods you buy in the state. This is the statewide rate that applies at checkout when you purchase items at a store, online retailer, or restaurant. The tax is added to your total before you pay — so a $100 purchase costs $106.
Not everything is taxed at the same rate. Some items are taxed at 6 percent, some at a lower rate, and some are not taxed at all. Groceries you buy to cook at home — like milk, bread, and vegetables — are not taxed. But prepared food you eat right away, like a sandwich from a deli counter or a meal at a restaurant, is taxed at 6 percent. The difference is whether you are buying ingredients or a ready-to-eat meal.
Clothing and footwear under $110 per item are also not taxed in Pennsylvania. If you buy a shirt for $50, there is no sales tax. But if you buy a winter coat for $150, the full 6 percent applies because the item costs more than $110.
Key Takeaways
- Pennsylvania's statewide sales tax is 6 percent, applied at the register to most purchases.
- Groceries for home cooking are not taxed, but prepared foods and restaurant meals are taxed at 6 percent.
- Clothing and shoes under $110 per item are tax-free; items over that threshold are taxed.
- Some counties add a local sales tax on top of the state rate, raising the total to 6.5 or 7 percent depending on where you shop.
Items That Are Not Taxed in Pennsylvania
Beyond groceries and low-cost clothing, Pennsylvania exempts several categories from sales tax. Prescription medications are not taxed. Over-the-counter medicines like pain relievers and cold medicine are also tax-free. Medical equipment — such as wheelchairs, hearing aids, and diabetic supplies — is not taxed when prescribed by a doctor.
Newspapers and magazines are not taxed. Textbooks sold by schools and colleges are not taxed. If you buy a used item from a private person (not a business), there is no sales tax, though sales between businesses may be taxed differently. Certain services, like haircuts and repairs, are also not subject to sales tax in Pennsylvania.
Local Sales Tax on Top of the State Rate
While the state charges 6 percent, some counties in Pennsylvania add their own local sales tax. This local tax stacks on top of the state rate, so your total can be higher than 6 percent depending on where you shop.
Allegheny County (which includes Pittsburgh) adds 1 percent, bringing the total to 7 percent. Philadelphia County adds 1.3975 percent, for a total of about 7.4 percent. Most other counties have no additional local tax and stay at the 6 percent state rate. A few counties add smaller amounts — 0.25 or 0.5 percent — so the total varies. If you shop near a county line, the tax rate changes based on which county the store is in, not where you live.
How Sales Tax Is Calculated at Checkout
Sales tax is calculated on the subtotal before any discounts or coupons are applied. If an item costs $50 and you have a $10 coupon, the tax is calculated on $40, not $50. The tax is then added to that discounted price.
When you buy multiple items, each item is taxed individually based on its category. If you buy a $30 shirt (under $110, so no tax), a $15 prepared sandwich (taxed), and a $5 magazine (not taxed), only the sandwich is taxed. The store's register automatically applies the correct rate to each item based on what it is.
Sales Tax on Online and Out-of-State Purchases
If you order something online from a Pennsylvania retailer, Pennsylvania sales tax applies. If the retailer has a physical location in Pennsylvania or meets certain sales thresholds, they must charge you Pennsylvania tax even if you order from out of state.
If you order from a retailer outside Pennsylvania that has no presence in the state, Pennsylvania tax may not be charged at checkout. However, Pennsylvania law requires you to report and pay tax on those purchases yourself through your state income tax return — though most individuals do not do this. Large online retailers like Amazon and Walmart now charge Pennsylvania tax on most orders regardless of where they are based, so the practical difference has narrowed.
Who Collects and Where the Money Goes
The store or business you buy from collects the sales tax at the register and sends it to the Pennsylvania Department of Revenue. Businesses file sales tax returns monthly or quarterly depending on their size. The state uses this revenue to fund schools, roads, and other public services.
If you are a business owner in Pennsylvania, you need a sales tax license from the Department of Revenue before you can legally collect tax from customers. Individuals do not need a license to shop — only businesses need one to collect and remit the tax.
Frequently Asked Questions
Do I pay Pennsylvania sales tax if I live out of state but shop in Pennsylvania?
Yes. Sales tax is based on where the sale happens, not where you live. If you shop in a Pennsylvania store, you pay Pennsylvania's rate for that county. If you are visiting from New Jersey and buy something in Philadelphia, you pay Philadelphia's 7.4 percent rate.
Why is clothing under $110 not taxed but clothing over $110 is?
Pennsylvania treats clothing as a necessity and exempts items under $110 to reduce the tax burden on basic apparel. The $110 threshold applies per item, so a $105 shirt is tax-free but a $115 shirt is taxed. This rule has been in place for decades and the threshold does not change with inflation.
Is restaurant tax the same as grocery tax?
No. Groceries you buy to cook at home are not taxed. Restaurant meals, takeout, and prepared foods from a deli or bakery counter are all taxed at 6 percent (plus any local tax). The rule is whether you are buying ingredients or a ready-to-eat meal.
What if a store charges me the wrong sales tax?
Check your receipt and contact the store. If the error is small, the store may refund you on the spot. For larger errors, you can file a complaint with the Pennsylvania Department of Revenue, though the store is responsible for correcting its own records and refunding you directly.
Do I owe Pennsylvania sales tax on items I buy from a private person?
No. Sales between private individuals are not subject to sales tax. If you buy a used car, furniture, or clothing from someone on Facebook Marketplace or Craigslist, there is no sales tax. Tax applies only to sales by businesses.