Pennsylvania

The Pennsylvania (PA) state sales tax rate is currently 6.0%. Depending on local municipalities, the total tax rate can be as high as 8%.

The maximum rate combined with local sales tax rates can be no higher than 8.0%. At present, Philadelphia is allowed to impose an additional 2% sales tax rate through June 30, 2014 and Allegheny County is authorized to levy a 1% local sales tax.

Pennsylvania is one of the few states with a single, statewide sales tax. Businesses in Pennsylvania are required to file and remit sales tax electronically. Trustfile, owned by Avalara, is the single approved third party software vendor for filing sales tax in Pennsylvania.

Major items that Pennsylvania does not tax: food (except for ready-to-eat), most clothing apparel, textbooks, drugs, sales for resale items and residential heating fuels. Pennsylvania provides a Retailer’s Information Guide with a list of taxable items in the state.

Pennsylvania was listed in Kiplinger’s 2011 10 tax-friendly states for retirees. Food, clothing and medicine are exempt from sales tax. There is no income tax on social security and qualified retirement income, but property taxes can be high in some areas.

Amazon.com owns and operates several fulfillment centers in Pennsylvania. This physical presence, or nexus, creates a sales tax obligation for Amazon and many sellers participating in Amazon’s Seller Central and Fulfillment By Amazon (FBA) programs.

It is said that the history of sales taxes in the US dates back to a license tax imposed by Pennsylvania in 1821. A general sales tax was adopted in the state around 1953.

TrustFile automated sales tax returns

Avalara Sales and Use Tax Products for Pennsylvania

AvaTax – AvaTax is a powerful, online sales tax compliance solution that provides all businesses with a level of sales tax automation that until now has been available only to Fortune 500 companies. AvaTax’s transaction-based service model and seamless integration into business applications gives you rapid access to all jurisdiction assignments and real-time sales tax calculations. Cutting-edge technologies and superior processing logic can manage even the most complicated tax issues, such as situs, nexus, tax tiers, tax holidays, exemptions, certificate management and product taxability rules.

TrustFile – TrustFile offers a simple and inexpensive solution that automates sales and use tax processes in the twelve states that mandate e–filing and e–payment.

TrustFile Forms – TrustFile Forms helps you streamline the paper returns preparation process with a catalog of more than 1,000 state-approved forms for US States, US Possessions and Canada.

Pennsylvania Department of Revenue