York & most of PA
6% on taxable transactions.
- Main office: 717-757-5482
BOOKKEEPING · PENNSYLVANIA SALES & USE TAX
Sales tax affects what you charge customers—and what your business owes on purchases. Here’s a practical starting point for Pennsylvania businesses.
Guidance checked October 4, 2026. Examples below are not an exhaustive taxability list.
THE BASIC RATES
6% on taxable transactions.
7% total: 6% state plus 1% local.
8% total: 6% state plus 2% local.
Under Act 21 of 2026, vendors required to collect Pennsylvania sales tax must also collect local tax on taxable sales delivered to customers in Allegheny County or Philadelphia. The Department began enforcement October 1, 2026.
Local sales tax is now based on the delivery destination. Check your customer addresses and sales-system settings rather than relying only on your business location.
COMMON EXAMPLES
| Category | Typical treatment | Keep in mind |
|---|---|---|
| Goods & equipment | Retail sales and rentals of taxable tangible property are generally taxed. | Business computers and office furniture are common taxable purchases. A business purchase is not automatically exempt. |
| Digital products | Certain digital products and prewritten computer software are taxable. | Have ASY review the particular software, subscription, or service. |
| Food & clothing | Most grocery food not ready-to-eat, candy, gum, and most everyday clothing are exempt. | Restaurant food is generally taxable. Formal, sporting, and fur apparel have different rules. |
| Other common exemptions | Textbooks, pharmaceutical drugs, and residential heating fuels are major exempt categories. | Exemptions depend on the product and its use. |
| Purchases for resale | Qualifying resale purchases may be exempt. | Keep the proper exemption documentation. Supplies your business consumes are not resale inventory. |
Common taxable services include lawn care, pest control, building cleaning and maintenance, self-storage, employment/help-supply services, and certain printing, telecommunications, and video-streaming services.
Repairs to taxable personal property, motor-vehicle washing, and vehicle inspections are also taxable examples. The exact service and any applicable exemption matter.
Labor to repair taxable items—such as a vehicle, appliance, or jewelry—is generally taxable. Separately listing labor does not make it exempt.
Labor to install or repair items that become part of real estate, such as a roof or water heater, is generally not taxable. Real-estate contracting and other service categories require separate review.
WHEN THE SELLER DOES NOT COLLECT TAX
If you buy taxable goods or services for use in Pennsylvania and the seller does not collect the required tax, your business may owe use tax at the same state and applicable local rates.
For example, office furniture bought in Delaware and brought to your Pennsylvania business, or a computer delivered by an online seller that did not collect PA tax, can create a use-tax obligation.
Businesses registered for sales tax report use tax with their sales/use tax return. Other businesses should follow Pennsylvania’s use-tax filing options through myPATH.
MAKE IT PART OF YOUR BOOKKEEPING
Download ASY’s business income & expense spreadsheet (.xlsx) ↗
Use our spreadsheet to keep your records organized and make taxable and non-taxable sales easier to track. Keep separate totals for taxable sales, non-taxable/exempt sales, and sales tax collected.
If you already have a myPATH account, ASY will need your current login credentials to handle your sales tax filings. Provide them securely through SmartVault when requested by our office. Please do not send passwords by ordinary email or text.
LET’S REVIEW YOUR BUSINESS
ASY can obtain a Pennsylvania sales tax ID for your business and file sales tax returns for our clients. We also help review your sales-tax setup, organize records, and identify questions that need closer attention. Share a sample invoice, what you sell, and where customers receive it.