Local Sales Tax Rules for Philadelphia and Allegheny Counties

Vendors who are already required to collect and remit the Commonwealth’s 6 percent sales tax are required to collect and remit Philadelphia’s 2 percent local sales tax and Allegheny County’s 1 percent local sales tax on taxable sales made to customers in those respective counties.

This legislative change became law with enactment on July 12, 2026, with a retroactive effective date of tax years after December 31, 2025.

However, the Department of Revenue understands that vendors may need time to adjust to this change in law. As a result, the department will not begin enforcing these new rules until October 1, 2026.

• Prior to this change in law, local sales tax was generally based on point of sale (i.e., where the vendor was located).
• Local sales tax is now based on point of destination (i.e., where the product or service is delivered). This change aligns with how Pennsylvania’s state sales tax is administered.

• State sales tax rules have not changed. State sales tax must be collected whenever you sell taxable items or services.
• State and local use tax rules have not changed. If sales tax is not collected at the time of purchase, purchasers still owe use tax when taxable items or services are used in Philadelphia or Allegheny counties.

• Use the Online Customer Service Center to securely submit a question to the Department of Revenue.
• Call the Department of Revenue at 717-787-1064.