Pennsylvania Sales Tax Guide & Nexus Calculator (2026)
Pennsylvania taxes digital goods and SaaS under a framework that distinguishes between custom and prewritten software. Prewritten (canned) software — whether on a disk or downloaded — is taxable. SaaS has been interpreted as taxable by the Pennsylvania DOR under a broad reading of “sale, rental, or use of computer software.” Pennsylvania is an SST member.
Quick Reference
Section titled “Quick Reference”| Criterion | Detail |
|---|---|
| State Rate | 6% |
| Economic Nexus Threshold | $100,000 gross sales (rolling 12 months) |
| Transaction Threshold | None |
| Digital Goods / SaaS | Taxable (prewritten software; SaaS also taxable per DOR) |
| Typical Filing Frequency | Monthly |
| SST Member | Yes |
| Registration Portal | mypath.pa.gov |
Economic Nexus
Section titled “Economic Nexus”For informational purposes only · Not legal or tax advice · Consult a licensed tax professional · Rules as of 2026
Pennsylvania’s economic nexus threshold is $100,000 in gross sales into Pennsylvania in the current or prior 12-month period. Once exceeded, registration and collection are required.
Marketplace-facilitated sales count toward the threshold. Pennsylvania eliminated its 200-transaction alternative threshold before 2025.
Tax Rate and Product Taxability
Section titled “Tax Rate and Product Taxability”Pennsylvania’s state rate is 6%. Philadelphia and Allegheny County have additional local rates:
- State: 6%
- Philadelphia City: 2% additional (combined 8%)
- Allegheny County (Pittsburgh area): 1% additional (combined 7%)
- All other Pennsylvania locations: 6% only
Pennsylvania is unusual in that only two jurisdictions impose local sales taxes — Philadelphia and Allegheny County. All other Pennsylvania ZIP codes are at the flat 6% state rate.
Product Categories
Section titled “Product Categories”Taxable: Tangible personal property, prewritten computer software (in any delivery form), most retail goods.
Exempt: Prescription drugs, most groceries (food for home consumption is exempt), clothing (Pennsylvania exempts most clothing from sales tax — a broad exemption similar to New Jersey and New York), qualifying manufacturing inputs.
Clothing exemption: Pennsylvania exempts most clothing and footwear from sales tax. Fur clothing and certain accessories are taxable. This is a broad, item-level exemption — not a threshold-based one.
Digital Goods and SaaS
Section titled “Digital Goods and SaaS”Pennsylvania taxes SaaS and digital goods under its prewritten software framework:
- Prewritten (canned) software — taxable whether delivered on a physical medium or electronically (downloaded)
- SaaS — Pennsylvania’s DOR has taken the position that SaaS constitutes a taxable “license to use” prewritten computer software. The DOR issued guidance treating SaaS as taxable, making Pennsylvania one of the states where SaaS sellers clearly have an obligation once they cross the threshold
- Custom software — generally not taxable (software developed solely for a specific customer to their specifications)
- Digital content (streaming, ebooks, downloaded music) — Pennsylvania’s taxability for digital content is less comprehensive than its software rules; streaming video and audio have not been universally subjected to sales tax
The key Pennsylvania rule: if your product involves using someone’s prewritten software — whether hosted on your servers (SaaS) or downloaded to the customer — Pennsylvania treats it as taxable.
Custom vs. prewritten: If you offer both a standard (prewritten) product and custom implementations, the taxability depends on classification. Bundled contracts with both prewritten and custom elements may need to be allocated.
Registration
Section titled “Registration”Pennsylvania is an SST member state. Register through the SSTRS at streamlinedsalestax.org for multi-state coverage including Pennsylvania.
For Pennsylvania-only registration:
- Go to myPATH: mypath.pa.gov
- Register for a Sales Tax License
- Provide EIN and business details
- You will receive a Pennsylvania Sales Tax Account number
Registration is free.
Foreign Sellers
Section titled “Foreign Sellers”Pennsylvania accepts foreign business registrations. A US EIN is required.
Filing Frequency and Deadlines
Section titled “Filing Frequency and Deadlines”| Annual Tax Liability | Filing Frequency |
|---|---|
| Less than $600 | Annual |
| $600–$25,000 | Quarterly |
| More than $25,000 | Monthly |
Monthly due dates: Returns are due by the 20th of the following month.
Returns are filed through myPATH.
Compliance Notes
Section titled “Compliance Notes”SaaS is taxable: Pennsylvania’s DOR has consistently treated SaaS as taxable. Unlike states where SaaS taxability is ambiguous, Pennsylvania’s guidance is relatively clear — if it’s prewritten software delivered in any form (physical, downloaded, or remotely accessed), it’s taxable.
Philadelphia rate: Orders destined to Philadelphia ZIP codes run at 8%. Allegheny County orders run at 7%. All other PA orders run at 6%. Only two jurisdictions with local rates keeps configuration simple.
Clothing exemption: Pennsylvania’s broad clothing exemption is significant for apparel sellers. Most clothing items are exempt with no per-item price threshold.
SST member: Use the SSTRS for multi-state registration covering Pennsylvania.
Amazon FBA: Amazon operates major fulfillment centers in Pennsylvania. FBA inventory creates physical nexus immediately.