Sales tax is a tax imposed by state and local governments on the sale of goods and services and is usually calculated as a percentage of the sale price. Sales tax is sometimes referred to as retail sales tax.
In Pennsylvania (PA), sales tax is a state-level tax imposed on the sale of most goods and certain services. The state sales tax rate is 6%, but there is an additional local sales tax in some areas. For instance, Allegheny County has an additional 1% local sales tax, and Philadelphia has an additional 2%, making their total sales tax rates 7% and 8%, respectively. Pennsylvania's sales tax is destination-based, meaning the tax rate is determined by the location where the buyer takes possession of the item or where the service is performed. Certain items are exempt from sales tax in Pennsylvania, including most food, clothing, textbooks, drugs, sales for resale, and residential heating fuels. The responsibility for collecting and remitting sales tax falls on the seller, who must register with the Pennsylvania Department of Revenue if they have a nexus in the state, which can be established through physical presence, economic activity, or other criteria as defined by state law.