Pennsylvania Sales Tax Nexus Requirements 2026

What is Sales Tax Nexus in Pennsylvania?

Sales tax nexus is a connection between your business and Pennsylvania that creates an obligation to collect and remit sales tax. Pennsylvania's sales tax system is notable for having local taxes in two jurisdictions: Philadelphia and Allegheny County.

Pennsylvania was one of the later states to implement economic nexus, with its law taking effect in July 2019. The state uses a straightforward $100,000 threshold without a transaction count requirement.

Once you establish nexus, you must register with the PA Department of Revenue, collect the appropriate tax rate (including local taxes when applicable), and file returns according to your assigned schedule.

PA Economic Nexus Rules

Pennsylvania established economic nexus effective July 1, 2019, following the Wayfair decision.

Pennsylvania's Economic Nexus Threshold

• Revenue Threshold: $100,000 in gross sales into Pennsylvania during the previous 12-month period
• Transaction Threshold: None
• Measurement Period: Previous 12 months (rolling basis)

Important: 12-Month Rolling Period

Unlike many states that use a calendar year, Pennsylvania uses a rolling 12-month period. This means you should continuously monitor your Pennsylvania sales to determine when you cross the threshold.

Calculating Your Threshold

When determining if you meet Pennsylvania's threshold:

• Include gross sales of tangible personal property delivered into PA
• Include taxable services and digital goods
• Include both taxable and exempt sales
• Exclude sales made through marketplace facilitators who collect on your behalf

When to Start Collecting

Once you exceed the $100,000 threshold, you must register and begin collecting Pennsylvania sales tax. Pennsylvania allows reasonable time to register after crossing the threshold.

Philadelphia and Allegheny County Local Taxes

Pennsylvania's local tax structure is unique and creates additional complexity for remote sellers.

Philadelphia (2% Local Tax)

Philadelphia imposes an additional 2% local sales tax on top of the 6% state rate, for a combined rate of 8%. This applies to:

• All sales delivered to addresses within Philadelphia city limits
• Remote sellers with PA nexus shipping to Philadelphia customers
• Taxable services performed in Philadelphia

Allegheny County (1% Local Tax)

Allegheny County (which includes Pittsburgh) imposes a 1% local tax for a combined rate of 7%. This applies to:

• All sales delivered to addresses within Allegheny County
• Remote sellers with PA nexus shipping to Allegheny County customers
• Taxable services performed in Allegheny County

Compliance Tips for Local Taxes

To properly collect local taxes:

• Use address validation to identify Philadelphia and Allegheny County deliveries
• Configure your shopping cart to apply the correct combined rate
• Report state and local taxes separately on your PA tax return
• Keep records showing which sales were subject to local taxes

Physical Presence Nexus in Pennsylvania

Physical presence creates nexus regardless of sales volume:

• Having an office, store, or warehouse in Pennsylvania
• Employing workers in PA (including remote employees)
• Storing inventory in PA (including Amazon FBA inventory)
• Owning or leasing property in PA
• Having sales representatives soliciting orders in PA
• Making deliveries using your own vehicles
• Providing services or installation in PA

Amazon FBA in Pennsylvania

Amazon operates fulfillment centers in Pennsylvania, including facilities in Hazleton, Carlisle, Lewisberry, and other locations. If Amazon stores your inventory in PA, you have physical presence nexus.

Do I Have Nexus in Pennsylvania?

How to Register for PA Sales Tax

1. Create an account on Pennsylvania's myPATH portal
2. Complete the PA-100 enterprise registration form
3. Select "Sales, Use and Hotel Occupancy Tax" as your tax type
4. Provide your federal EIN and business information
5. Submit the application (no fee required)
6. Receive your sales tax license number (5-7 business days)

For a detailed walkthrough, see: How to Register for PA Sales Tax

Filing Requirements

Pennsylvania assigns filing frequency based on annual tax liability:

• Monthly: Annual liability over $600
• Quarterly: Annual liability $300-$600
• Semi-Annual: Annual liability $75-$300
• Annual: Annual liability under $75

Returns are due by the 20th of the month following the reporting period. Electronic filing through myPATH is required for most filers.

Pennsylvania allows a 1% discount (up to $25 per filing period) for timely filing and payment.

See: PA Sales Tax Filing Deadlines

Penalties for Non-Compliance

• Late Filing Penalty: 5% of tax due per month, up to 50%
• Late Payment Penalty: 5% of tax due per month, up to 25%
• Interest: Set quarterly by the PA Department of Revenue
• Minimum Penalty: $2 if tax is 1-14 days late, $5 if 15+ days late

See: PA Sales Tax Penalties