08/20/2026
FYI for PA residents!
Local Sales Tax Rules for Philadelphia and Allegheny Counties
Legislation (Act 21 of 2026) that was passed by Pennsylvania’s General Assembly requires vendors selling taxable products or services to customers in Philadelphia and Allegheny counties to collect and remit local sales taxes.
Overview
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.
What Is Different Now
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.
