Sales tax is considered to be an essential component of the state’s revenue system. If you are running a business in Pennsylvania, it is important to understand the ins and outs of sales tax in Pennsylvania. It is governed by the Pennsylvania Department of Revenue and therefore, it is crucial for all business owners to understand its implications to stay compliant with state regulatory protocols. Basically, a sales tax is a consumption tax imposed on the sales of goods and services. The current Pennsylvania sales tax rate is 6%. Along with this, some counties like Philadelphia and Allegheny impose an additional sales tax of 1% and therefore the total base tax in Pennsylvania stands at 7%. At Tax 365, we will guide you in collecting and remitting the actual tax. With our sales tax calculator in Pennsylvania, we can instantly calculate the right amount of tax that you need to collect and remit it to the sales tax department. It is important to submit the actual tax to the government to keep the business compliant with state regulatory protocols.

Sales tax in Pennsylvania is applied to most of the tangible goods and services including clothing, footwear, food and beverages and various types of services such as hotel accommodations, restaurant meals, and car rentals incur sales tax. On the other hand, certain things and services are exempted from sales tax in Pennsylvania including purchases done by non-profit organizations are exempted from sales tax, and businesses purchasing goods for resale are exempted from paying sales tax in Pennsylvania. Understanding sales tax in Pennsylvania is crucial for both customers and business owners. At Tax 365, we will keep you informed about current PA sales and use tax rates, exemptions, and filing to ensure your compliance and avoid penalties.