Philadelphia Sales Tax Guide 2025 (Pennsylvania)

Who Needs to Collect Sales Tax in Philadelphia?

Sales tax collection in Philadelphia is required for businesses that meet the following criteria:

1. Physical Presence: Businesses with a store, office, warehouse, or employee in Philadelphia.

2. Economic Nexus: Out-of-state businesses exceeding $100,000 in Pennsylvania.

Not sure if your business meets these criteria? Kintsugi’s Nexus Analysis Tool can help you determine your sales tax obligations.

What Is Taxable in Philadelphia?

In Philadelphia, Pennsylvania, sales tax applies to:

1. Tangible personal property (e.g., electronics, clothing, furniture).

2. Certain services.

There are also exemptions for items like General Clothing, Grocery Food, Machinery, Raw Materials, Utilities & Fuel, Medical Devices, Medicines, Newspapers, General Occasional Sales, Parts Purchased for Use in Performing Service Under Optional Maintenance Contracts, General Trade-Ins, Supplements. Ensure you check with your state’s tax authority or consult Kintsugi for clarity.

How to File Sales Tax in Philadelphia

Here’s a step-by-step guide for filing your sales tax returns:

1. Register Your Business: Get a sales tax permit through the https://https://mypath.pa.gov/_/?_gl=11ftubxz_gcl_au*MjEzNTI1NjkwMC4xNzEyMDczNzE1.

2. Collect Sales Tax: Accurately calculate sales tax on taxable transactions.

3. File and Pay: Submit sales tax returns through https://https://mypath.pa.gov/_/?_gl=11ftubxz_gcl_au*MjEzNTI1NjkwMC4xNzEyMDczNzE1 by the [state-specific deadline]—monthly, quarterly, or annually depending on your sales volume.

Kintsugi’s Automated Filing Service streamlines the process, ensuring accuracy and timeliness.

Common Challenges in Sales Tax Compliance

Businesses in Philadelphia often face these issues:

1. Tracking tax rate changes for city, county, and special districts.

2. Managing exemptions and resale certificates.

3. Reconciling returns for accurate filing.

Kintsugi’s AI-Driven Compliance Solution takes the guesswork out of sales tax, handling rate calculations, exemption management, and filing across all jurisdictions.

Why Choose Kintsugi for Sales Tax Compliance?

Kintsugi is more than a software solution—we’re your trusted partner in sales tax compliance. Here’s how we help:

1. Real-Time Rate Calculation across billing, payments, and e-commerce platforms.

2. Nexus Tracking to identify where you need to register and collect tax.

3. Automated Filing to save time and reduce errors.

4. Audit Support to give you peace of mind.

A direct-to-consumer brand, recovered over $200K in overpaid sales tax within their first month of switching to Kintsugi. Your business could be next.

Ready to Simplify Sales Tax Compliance in Philadelphia?

With Kintsugi, managing sales tax is effortless. Whether you're just starting out or scaling across multiple states, we have the tools to help you stay compliant and grow with confidence.

Find Sales Tax Information for Other Cities in Pennsylvania

Looking for sales tax rates and compliance details for other cities in Pennsylvania? Check out our comprehensive table of sales tax information for cities across the state in the table below