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of the Commonwealth of Pennsylvania

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    Tax Types and Information

    Sales, Use and Hotel Occupancy Tax

    The sales and use tax is imposed on the retail sale, consumption, rental or use of tangible personal property including - digital products - in Pennsylvania. The tax is also imposed on certain services relating to such property and on the charge for specific business services. Major items exempt from the tax 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.

    File a Business Tax Return
    Make a Business Tax Payment

    Overview

    The Pennsylvania sales tax rate is 6 percent. By law, a 1 percent local tax is added to purchases made in Allegheny County, and 2 percent local tax is added to purchases made in Philadelphia.

    See the Retailer's Information Guide (REV-717) [PDF] or the more detailed Taxability Lists for a taxable items to review subjectivity to sales tax of goods and services.

    A use tax, at the same rate as sales tax, is due on taxable purchases of tangible personal property or specified services used or consumed in Pennsylvania where no sales tax is paid to a vendor. For example, the purchase may have been made out-of-state.

    The hotel occupancy tax, imposed at the same rate as sales tax, applies to room rental charges for periods of less than 30 days by the same person. In addition to hotels, the tax applies to rentals of rooms, apartments and houses arranged through online or third-party brokers.

    For detailed and historic sales, use and hotel occupancy tax information, please review the Tax Compendium.

    Types of Sales Tax Licenses

    Required for any business that sells taxable items or performs taxable services.

    Returns are to be filed whether or not taxable transactions occur in a period. File and remit payments using one of the following options:

    • myPATH
    • Telefile provides a fast and secure way to file tax returns and remit payments by calling, toll-free, 1-800-748-8299.
      • You will be required to enter any two of the following identifiers: 8-digit Account ID Number, FEIN or SSN, and the period ending date for the period you wish to file.
    • Approved third-party vendors provide for secure transmission for filing and paying. 

    Required in addition to a Sales, Use, and Hotel Occupancy Tax License when renting out a property — including a home, room, or apartment — to provide lodging to a guest for a period fewer than 30 days. This license is used to report only the hotel occupancy tax collected on the booking agent’s accommodation fee. 

    The booking agent license will follow the current Sales, Use, and Hotel Occupancy Tax License filing frequency. Licensees must submit a booking agent hotel occupancy return​ with the Department of Revenue, even for periods when no taxable hotel booking rentals occurred. The tax account filing frequency for ensuing calendar years may change based upon the amount of tax reported to the department.

    Visit Hotel Occupancy Tax – Booking Agents for more information on Booking Agents.

    Required for any non-Pennsylvania enterprise (sole proprietorship or partnership) that does not have a permanent, physical business location in Pennsylvania, and is selling taxable, tangible, personal property, or performs taxable services physically in Pennsylvania.

    Thirty days prior to entering Pennsylvania to conduct business, the holder of this transient vendor certificate must notify the Department of Revenue, in writing, of the date(s) and location(s) said business will be conducted or complete the Pennsylvania Online Business Tax Registration through myPATH. Email notifications to ra-btftregisfax@pa.gov.

    Returns are to be filed whether or not taxable transactions occur in a period. File and remit payments using one of the following options:

    • myPATH
    • Telefile provides a fast and secure way to file tax returns and remit payments by calling, toll-free, 1-800-748-8299.
      • You will be required to enter any two of the following identifiers: 8-digit Account ID Number, FEIN or SSN, and the period ending date for the period you wish to file.
    • Approved third-party vendors provide for secure transmission for filing and paying. 

    Required for any person who either directly or indirectly rents, leases, or otherwise operates or grants permission to use space at a show for the display/sale of tangible personal property or services subject to tax.

    Any enterprise wanting to be a promoter needs to obtain a Promoter License and must register at least 30 days prior to the opening of the first show.

    A promoter does not have a filing obligation with the Department of Revenue. However, a promoter license must be renewed annually by completing the Pennsylvania Online Business Tax Registration through myPATH.

    Required for any business that only sells to retailers.

    A wholesaler is solely engaged in transferring tangible personal property or services for resale. A Pennsylvania Exemption Certificate (REV-1220), once issued to the supplier, may be used for all future tax-exempt purchases. The certificate must contain your Account ID. This exemption is not valid for purchases to be consumed by the purchaser and is only valid while the enterprise is operating as a wholesaler.

    A wholesaler does not have a filing obligation with the Department of Revenue.

    Registration

    To register for a Sales, Use, and Hotel Occupancy Retail Tax License; Transient Vendor Certificate; Promoter License; or Wholesale Certificate, complete the Pennsylvania Online Business Tax Registration through myPATH

    Booking Agents are required to be registered for two licenses to collect Hotel Occupancy Tax.

    1. If the Booking Agent does not already have a separate Sales, Use, and Hotel Occupancy tax license, it should obtain one using the Pennsylvania Online Business Tax Registration process through myPATH. The Booking Agent will need to obtain a Sales, Use, and Hotel Occupancy tax license before registering for a Booking Agent license.
    2. Upon receiving the Sales, Use, and Hotel Occupancy tax license, the next step is to register for the booking agent license. Complete the Hotel Booking Agent Registration Form (REV-1840) to acquire the booking agent license. Upon completion of the registration form, email the form to ra-btftregisfax@pa.gov​ or fax to 717-787-3708.