State guide · PA
Pennsylvania sales tax and property tax
One state rate, two places that add to it by law, and a list of exemptions that covers most clothing and even candy.
Facts read on official Pennsylvania pages on · Checked by Radif Partners · How we calculate
- State sales tax
- 6%
- Local sales taxes
- Yes, by address
- Groceries
- Exempt from the state rate
- Clothing
- Exempt
- Median property tax
- $3,214
- Effective property rate
- 1.16% · #14 of 51
Pennsylvania charges a 6% sales tax, and only two places add a local tax: Allegheny County, which brings the total to 7%, and the City of Philadelphia, at 8%. Everywhere else, 6% is the full rate. The exemptions are broad: grocery food, candy and gum, most clothing whatever its price, textbooks, residential heating fuels and prescription drugs are all untaxed, while restaurant meals, formal wear, sporting clothing, fur and digital products such as downloaded software are taxed. There is no sales tax holiday. Property tax is levied only locally, by counties, municipalities and school districts. The median owner paid $3,214 in 2024 on a $277,600 home (Census ACS), an effective rate of 1.16%, ranked 14 of 51. Relief comes from the Act 1 homestead exclusion on school taxes, funded by gaming revenue, and the Property Tax/Rent Rebate of up to $1,000 for older and disabled residents.
Total to pay
$106.00
Sales tax $6.00 · 6% of the price
| Price before tax | $100.00 |
| State tax · 6% | $6.00 |
| Local tax · 0% | $0.00 |
| Total | $106.00 |
Rule applied: general state rate. How this is calculated.
Sales tax in Pennsylvania
Pennsylvania settled the local question by statute: counties and Philadelphia may levy a local sales tax at a rate fixed in the law, and only Allegheny County (1%) and Philadelphia (2%) do so. A $1,200 television costs $72.00 in tax in most of the state, $84.00 in Allegheny County and $96.00 in Philadelphia. Use tax follows the same pattern: items delivered to or used in those two places owe the local part too, and individuals can report use tax on the PA-40.
The clothing rule is the one shoppers should learn. Most clothing is exempt with no price cap, so an expensive winter coat is untaxed, but the law singles out formal day or evening apparel, bridal wear, fur articles, sporting clothing, accessories and ornamental wear as taxable: a $400 tuxedo or gown carries $24.00 of state tax. Food follows a similar logic. Groceries that are not ready to eat are exempt, and so are candy and gum, but ready-to-eat food from restaurants and caterers is taxed. Heating oil, gas, electricity, coal and firewood for a home are exempt; canned software and other digital goods are taxed.
Cars and rooms have their own charges. Hotel stays under 30 days pay the 6% hotel occupancy tax, plus the local 1% where it applies, including rooms booked through online brokers. A short-term car rental pays sales tax, a 2% Vehicle Rental Tax and a $2 daily Public Transportation Assistance fee; a lease of 30 days or more adds a 3% PTA tax to the payments. Each new tire carries a $1 fee.
What the state charges, item by item
| Item | State rate | Local tax | Rule |
|---|---|---|---|
| Most goods | 6% | yes | State rate 6%. By law a 1% local tax is added in Allegheny County (total 7%) and a 2% local tax in Philadelphia (total 8%). |
| Groceries (food for home) | 0% | no | Food that is not ready-to-eat (grocery store food) is exempt, as are candy and gum; ready-to-eat food from restaurants and caterers is taxable. |
| Clothing | 0% | no | Most clothing is exempt regardless of price; formal day or evening apparel, fur articles, sporting clothing, accessories and ornamental wear are taxable. |
| Prescription drugs | 0% | no | |
| Hotel occupancy (stays under 30 days) | 6% | Same rate as sales tax, plus 1% local hotel occupancy tax where a local tax is imposed; also applies to rentals booked through online brokers. | |
| Motor vehicle leases (PTA tax) | 3% | 3% Public Transportation Assistance tax on total lease payments (30+ days), on top of sales tax. | |
| Motor vehicle rentals (Vehicle Rental Tax) | 2% | 2% Vehicle Rental Tax on rentals of 29 days or less by companies with 5+ vehicles, plus a $2 per day PTA fee and sales tax. |
Local sales taxes
Levied by counties and the City of Philadelphia may impose a local sales, use and hotel occupancy tax; only Allegheny County (1%) and Philadelphia (2%) do. Local rates fixed by law: 1% Allegheny County, 2% Philadelphia. As of January 2010 only these two have imposed local tax.
Sales tax holidays in 2026
No sales tax holiday is listed by the Department of Revenue; most clothing, groceries and school textbooks are exempt year-round.
Worth knowing about Pennsylvania sales tax
- Pennsylvania's sales tax is 6%, with a 1% local tax added by law in Allegheny County and 2% in Philadelphia. source
- Only Allegheny County and the City of Philadelphia impose a local sales tax; vendors located there must collect it. source
- Most clothing is exempt, but formal wear, bridal apparel, fur articles and sporting clothing are taxable. source
- Candy and gum, textbooks and residential heating fuels (oil, electricity, gas, coal, firewood) are exempt. source
- Digital products, including canned software and digital goods, are subject to sales and use tax. source
- Each new highway tire carries a $1 PTA fee, and car rentals pay $2 per day plus a 2% Vehicle Rental Tax. source
Property tax in Pennsylvania
Pennsylvania has no state property tax and no statewide assessment cycle. County assessment offices set values, and counties, municipalities and school districts each levy their own millage on them. At the Census ratio of 1.16%, a $280,000 house pays about $3,242 a year. A sale adds the realty transfer tax: 1% to the state, often with a local transfer tax collected by the county Recorder of Deeds on top.
Act 1 of 2006 does two things for homeowners. It stops a school district from raising its tax faster than an annual inflation index without a voter referendum, unless an exception applies. And it created the homestead and farmstead exclusion, which lowers the assessed value of a primary residence for school taxes, paid for with state gaming revenue. The amount depends on the school district, so there is no single figure: the district must remind owners about it by December 31, and the application goes to the county assessment office by March 1. Reapplication cannot be required more than once every three years. Farm owners on at least 10 contiguous acres can add the farmstead exclusion for agricultural buildings. In Philadelphia, the same state money lowers the wage tax instead.
The Property Tax/Rent Rebate program pays $380 to $1,000 to homeowners and renters aged 65 or older, widows and widowers 50 or older, and people with disabilities, with household income of $48,110 or less. 2025 claims are accepted until December 31, 2026, and the rebate must be claimed again each year.
Property tax on a home in Pennsylvania
Typical bill per year
$3,215
| Per month | $268 |
| Median effective rate in Pennsylvania | 1.16% |
| Median bill paid | $3,214 |
Census median ratio; your county, city and school district set the real levy.
| Census figure | Pennsylvania |
|---|---|
| Median home value (owner-occupied) | $277,600 |
| Median real estate taxes paid | $3,214 |
| with a mortgage | $3,569 |
| without a mortgage | $2,730 |
| Effective rate (tax ÷ value) | 1.16% |
| Rank by effective rate (1 = highest) | 14 of 51 |
| Rank by median bill | 19 of 51 |
How the taxable value is set
Property is assessed by the county assessment office; there is no statewide reassessment cycle or single statewide assessment ratio in the Department materials read. School districts cannot raise property tax rates faster than an annual inflation index without a voter referendum (Act 1 of 2006). Who levies the tax: local only: counties, municipalities and school districts; values set by county assessment offices
Other property tax relief
- Property Tax/Rent Rebate (PTRR). Rebate of $380 to $1,000 for homeowners and renters 65+, widows and widowers 50+, and people with disabilities 18+, with household income of $48,110 or less; supplemental rebates of $190-$500 for some low-income homeowners and in Philadelphia, Pittsburgh and Scranton. 2025 claims accepted until December 31, 2026. source
- Farmstead exclusion. Covers agricultural buildings on a farm of at least 10 contiguous acres that is the owner's primary residence; can be combined with the homestead exclusion. source
Worth knowing about Pennsylvania property tax
- The PTRR maximum standard rebate rose to $1,000 (from $650) and the income limit is now indexed to cost of living; it is $48,110 for 2025 claims. source
- PTRR rebates are paid starting July 1 each year and applicants must reapply annually. source
- School districts must notify residential owners by December 31 each year about the homestead exclusion application. source
- Under Act 1, a school district must hold a voter referendum to raise taxes beyond its inflation index unless a referendum exception applies. source
- The state realty transfer tax is 1% of the property value on transfer, often with an additional local realty transfer tax collected by county Recorders of Deeds. source
- Since 1971 the PTRR program has delivered nearly $9 billion in relief, funded by gaming revenue. source