Do you need to collect sales tax in Pennsylvania?
You’ll need to collect sales tax in Pennsylvania if you have nexus there. There are two ways that sellers can be tied to a state when it comes to nexus: physical or economic. Physical nexus means having enough tangible presence or activity in a state to merit paying sales tax in that state. Economic nexus means passing a states’ economic threshold for total revenue or the number of transactions in that state.
Do you have physical nexus in Pennsylvania?
Pennsylvania considers a seller to have physical nexus if you have any of the following in the state:
- An office or place of business
- An employee present in the state
- Goods in a warehouse
- Ownership of real or personal property
- Delivery of merchandise in Pennsylvania
- Independent contractors or other representatives in Pennsylvania
- Leasing property in the state
You can click here to read exactly what the Pennsylvania Department of Revenue has to say about what constitutes sales tax nexus in Pennsylvania.
Do you have economic nexus in Pennsylvania?
Effective July 1, 2019, sales into Pennsylvania that exceeded $100,000 in the previous 12-month period are considered to have economic nexus. The notice and report is still in effect for those with taxable sales greater than $10,000 but less than $100,000 in a calendar year. You can read Pennsylvania’s economic nexus guidance for sellers here.
Summary: According to Pennsylvania, sellers who meet the nexus threshold are required to register for a Pennsylvania sales tax permit, collect sales tax on sales that ship into Pennsylvania, and remit sales tax to the state.
Those who do not meet the economic threshold should make an election by March 1 of every year and do one of two things:
- Register for a Pennsylvania sales tax permit, collect sales tax on sales that ship into Pennsylvania, and remit sales tax to the state.
- Comply with the state’s rigorous “notice and reporting requirements.”
You can read more about Pennsylvania’s economic nexus law (and notice and reporting requirements) here.
Effective date: 7/1/2019 for economic nexus threshold
What is the Pennsylvania state sales tax rate?
The Pennsylvania state sales tax rate is 6%. Local sales tax rates may apply.
Is what you’re selling even taxable?
Services in Pennsylvania are generally not taxable, with a few exceptions.
Tangible products are taxable in Pennsylvania, with a few exceptions. These exceptions include food (not ready-to-eat); candy and gum; most clothing; textbooks; computer services; pharmaceutical drugs; sales for resale; and residential heating fuels such as oil, electricity, gas, coal and firewood.
Is SaaS taxable in Pennsylvania?
SaaS is taxable in Pennsylvania. (Source)
How to get a sales tax permit in Pennsylvania
Pennsylvania has an online option to register for most licenses and other business registrations. There’s even a site for the specific form you need, the PA-100. Register for your sales tax online at the Online PA100 site.
Or visit our registration page to request TaxJar manage your Pennsylvania registration for you.
Alternatively, you can download and print out the PA-100 and send it to:
Commonwealth of PA
Department of Revenue
Bureau of Business Trust Fund Taxes
PO Box 280901
Harrisburg, PA 17128-0901
717-787-1064
You need this information to register for a sales tax permit in Pennsylvania:
- Enterprise Information (name, date of operations, etc.)
- Taxes you’re applying for
- Business structure
- Owners/Partners/Shareholders etc. information
- Business activity information
- Transient vendor certificate, if applicable
- Promoter license, if applicable
Pennsylvania does not charge for a sales tax permit. Other business registration fees may apply. Contact each state’s individual department of revenue for more about registering your business.
Collecting Sales Tax
The sales tax rate you collect in Pennsylvania depends on whether you are based in Pennsylvania or out-of-state.
How to Collect Sales Tax in Pennsylvania if You are Based in Pennsylvania
Pennsylvania is an origin-based sales tax state. So if you live in Pennsylvania, collecting sales tax is fairly easy. Collect sales tax at the tax rate where your business is located.
You can look up your local sales tax rate with TaxJar’s Sales Tax Calculator.
If you have more than one location in Pennsylvania, then you would base the sales tax rate you charge on the point of origin of your sale.
Important to note: Only two locations in Pennsylvania that have a local tax rate: Allegheny County and Philadelphia. (For more information on specific business taxes applicable to merchants located in or operating in Philadelphia, consult the City of Philadelphia’s website. Everywhere else is just the state sales tax rate of 6%.
If you have more than one location in Pennsylvania, then you would base the sales tax rate you charge on the point of origin of your sale.
How to Collect Sales Tax in Pennsylvania if you are Not Based in Pennsylvania
If you live outside of Pennsylvania, but have nexus in the state, you would charge the 6% Pennsylvania state use tax rate. (Use tax is similar to sales tax, but charged by “remote sellers” – sellers who aren’t based in a state but have sales tax nexus in that state.)
Should you collect sales tax on shipping charges in Pennsylvania?
If the item being shipped is taxable, the shipping and handling charges are also subject to tax. If the item being shipped is not subject to sales tax, neither are the shipping and handling charges. In the case where items being shipped are both taxable and nontaxable, then the shipping and handling charges for the entire shipment are subject to tax.
Read a full explanation of sales tax on shipping inPennsylvania here.
When are Returns Due?
When you file and pay Pennsylvania sales tax depends on two things: your assigned filing frequency and your state’s due dates.
How often will you file sales tax returns in Pennsylvania?
States assign you a filing frequency when you register for your sales tax permit. In most states, how often you file sales tax is based on the amount of sales tax you collect from buyers in the state. In Pennsylvania, your sales tax filing frequency is determined by your sales tax liability during Q3 of the previous year.
In Pennsylvania, you will be required to file and remit sales tax either monthly, quarterly, or semiannually.
Pennsylvania sales tax returns are generally always due the 20th of the month following the reporting period, though semi annual filers get an extra month. If the filing due date falls on a weekend or holiday, sales tax is generally due the next business day.
Filing Sales Tax
When it comes time to file sales tax in Pennsylvania you must do three things:
- Calculate how much sales tax you owe
- File a sales tax return
- Make a payment
How to Calculate How Much Sales Tax You Owe in Pennsylvania
Calculating how much sales tax you should remit to the state of Pennsylvania is easy with TaxJar’s Pennsylvania sales tax report.
All you do is connect the channels through which you sell – including Amazon, eBay, Shopify, Square and more – and we’ll calculate exactly how much sales tax you collected. All the information you need to file your Pennsylvania sales tax return will be waiting for you in TaxJar. All you have to do is login.
How to File and Pay Sales Tax in Pennsylvania
You have three options for filing and paying your Pennsylvania sales tax:
- File online at the Pennsylvania Department of Revenue. You can remit your payment through their online system.
- File over the telephone- 1-800-748-8299
- AutoFile – Let TaxJar file your sales tax for you. We take care of the payments, too. You’ll never have to worry about spreadsheets, calculations or filling out complex sales tax returns.