Sales Tax in Pennsylvania: A Complete Guide for Ecommerce Sellers

Pennsylvania has two distinctive rules that set it apart from most states: clothing is generally exempt, and separately stated shipping charges are generally not taxable. Outside of Philadelphia (8%) and Allegheny County/Pittsburgh (7%), Pennsylvania’s rate is a simple 6% with no other local additions. Pennsylvania is not an SST member state.

Quick reference

Economic nexus

Pennsylvania’s OR threshold requires $100,000 in gross sales OR 200 or more transactions into Pennsylvania in the current or prior calendar year. Either condition alone triggers registration.

Pennsylvania enacted its economic nexus rules effective July 1, 2019.

Physical nexus

Physical presence in Pennsylvania creates nexus without any threshold:

• Warehouse, storage facility, or office in Pennsylvania
• Amazon FBA inventory in Pennsylvania fulfillment centers
• Employees or independent contractors in Pennsylvania
• Sales representatives or agents in Pennsylvania

Registration

Register through myPATH (mypath.pa.gov), the Pennsylvania Department of Revenue’s online portal. Registration is free. Pennsylvania issues a Sales Tax License upon completion.

Pennsylvania’s myPATH portal also handles use tax registration and other state tax accounts.

Tax rates

State rate: 6%

Local additions:

• Philadelphia: 2% city rate, for a combined 8% rate, one of the higher rates among major US cities
• Allegheny County (Pittsburgh area): 1% county rate, for a combined 7% rate
• All other Pennsylvania counties: No local addition, state rate of 6% applies

This two-locality structure makes Pennsylvania’s rate landscape simpler than most states. Outside Philadelphia and Allegheny County, there is only one rate.

What’s taxable

Generally taxable: Electronics, furniture, sporting goods, toys, jewelry, home goods.

Generally exempt:

• Prescription medications
• Most food for human consumption (groceries)
• Clothing and footwear (see below)
• Residential utilities (natural gas, electricity for residential use)
• Agricultural products and equipment

Pennsylvania’s clothing exemption: Pennsylvania broadly exempts clothing and footwear from sales tax. Unlike New York’s $110-per-item threshold, Pennsylvania’s clothing exemption is not limited by price, any item of clothing or footwear is exempt regardless of cost.

Exceptions to the clothing exemption (taxable):

• Formal wear for rent
• Fur coats and fur apparel
• Sports uniforms (athletic uniforms worn by teams are taxable; personal athletic clothing is generally exempt)
• Protective equipment designed primarily for sports

Notable Pennsylvania rules:

• Digital products: Pennsylvania taxes many digital products, including downloaded software, digital books, and digital music. SaaS has been subject to guidance indicating it may be taxable in Pennsylvania as a computer service
• Computer services: Pennsylvania has an expansive taxable services list that includes certain computer services, relevant for technology companies and SaaS sellers
• Candy and gum: Taxable (not eligible for the grocery exemption)

Shipping taxability

Pennsylvania is one of the few major states that generally does not tax separately stated delivery charges. When shipping is listed separately on the invoice:

• The delivery charge is not taxable, even when the goods are taxable
• This exemption applies to shipments via common carrier (UPS, FedEx, USPS)

When shipping is bundled with the sale price (not separately stated):

• The total price including shipping is treated as the sale price
• If the goods are taxable, the bundled shipping is also taxable

Practical implication: Always separately state shipping on Pennsylvania invoices. This is easy to configure in most ecommerce platforms and preserves the exemption on every shipment.

Marketplace facilitator rules

Pennsylvania enacted marketplace facilitator legislation effective January 1, 2018, earlier than most states. Qualifying marketplace facilitators collect and remit Pennsylvania sales tax on marketplace-facilitated sales.

Remote sellers whose only Pennsylvania sales are through marketplace facilitators and who have no physical nexus may not need to separately register. Sellers with Pennsylvania physical nexus must register regardless.

State-specific notes

Clothing exemption with no price cap: Pennsylvania’s clothing exemption is broader than New York’s and applies to any clothing or footwear item regardless of price. Sellers of apparel need their tax software configured to exempt clothing in Pennsylvania: the same item taxable in Ohio or Texas is exempt in Pennsylvania.

Separately stated shipping is exempt: This rule significantly affects sellers who previously included shipping in product prices. In Pennsylvania, separately stated shipping is not taxable, so configuring your checkout to display shipping as a separate line item saves your customers tax and reduces your collection obligation.

Philadelphia is its own rate zone: At 8%, Philadelphia is a meaningfully different rate from the rest of the state. Sellers with significant Philadelphia delivery volume need correct city-level rate application.