Welcome to our handy guide on Pennsylvania sales tax. We'll walk you through everything you need to know, from the specific sales tax rates in different counties and cities across Pennsylvania to answering some of the most common questions. Plus, we'll guide you on how to efficiently collect and file your sales tax in Pennsylvania.
Sales Tax Rate
Physical NexusIf you've got a shop, office, or store in Pennsylvania, that's a physical nexus. Renting or owning property, like storage spaces or warehouses? That's another way. Got employees or a sales crew in Pennsylvania? That counts too.
Economic NexusHitting over $100,000 in sales in Pennsylvania in a year? That's economic nexus. Or, if you've chalked up more than 200 transactions in the state.
Affiliate NexusIf your business is connected to another entity in Pennsylvania that helps boost your sales, you've got affiliate nexus. This could be a parent company, a subsidiary, or an entity that helps with sales or customer support.
Click-Through NexusPennsylvania doesn't specifically call out click-through nexus. So, just having online referrals from the state doesn't necessarily mean you've got to collect sales tax.
Marketplace NexusSelling through big online marketplaces like Amazon or eBay? They'll handle the sales tax for you, no matter your nexus status in Pennsylvania.
Air is tax-free in Pennsylvania when sold for tire inflation. Wait, air can be taxed at all??
How to Get Your Pennsylvania Sales Tax Permit
Cost of Registering for a Pennsylvania Sales Tax LicenseDon't sweat the cost—it's totally free to register for a Pennsylvania sales tax license.
Federal Tax ID for Pennsylvania Sales Tax LicenseYes, you'll need an Employer Identification Number (EIN) to register. This is a unique number from the IRS for your business. If you don't have one, you can apply for free on the IRS website.
Other Pennsylvania Registrations to Consider
Is Pennsylvania an Origin or Destination Sales Tax State?In Pennsylvania, you should calculate sales tax based on where your customer is located. This means adding up the state, county, and local tax rates that apply to your customer's address.
What Sales are Subject to Sales Tax in Pennsylvania?Pennsylvania's sales tax covers most physical goods and some services. This includes items like clothing (with some exceptions), vehicles, furniture, electronics, and services like dry cleaning and lawn care. Even admission to events and hotel stays fall under this.
Is Software as a Service (SaaS) Taxed in Pennsylvania?Yep, Software as a Service (SaaS) is taxable in Pennsylvania. It's seen as a service since users access the software remotely.
What is Exempt from Pennsylvaniane Sales Tax?You won't have to charge sales tax on things like most groceries, prescription drugs, newspapers, and certain sales to government entities or nonprofits. Even farmers get a break on items for farming.
Who is Eligible for Pennsylvania Sales Tax Exemptions?Nonprofits, government agencies, schools, colleges, and farmers can often skip the sales tax for eligible purchases.
What To Do If Your Customer is Exempt from Sales Tax in Pennsylvania?If a customer's exempt from sales tax, make sure to get a Pennsylvania Exemption Certificate (REV-1220) from them. Keep this filed safely for audit purposes.
What if You Lose a Pennsylvania Sales Tax Exemption Certificate?If you lose an exemption certificate, reach out to the customer for a new one. It's key to keep your records straight to avoid issues during audits. Always best to keep these documents safe and organized.
In Pennsylvania, if you buy a fruit tree, it's tax-free, but the moment you buy a fruit tree that’s already bearing fruit, it's taxable. This quirky tax law seems to encourage a "do-it-yourself" approach to fruit cultivation.
How to File a Pennsylvania Sales Tax Return
Penalties for Late Filing in Pennsylvania
Sales Tax Incentives in Pennsylvania
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