Pennsylvania is changing how local sales tax applies to sales made to customers in Philadelphia and Allegheny County. Under Act 21 of 2026, vendors already required to collect Pennsylvania’s 6% state sales tax must also collect the applicable local tax based on where the taxable product or service is delivered.
That means qualifying sales delivered to:
- Philadelphia: 6% state + 2% local = 8%
- Allegheny County: 6% state + 1% local = 7%
- Elsewhere in Pennsylvania: 6%
The law was enacted on July 12, 2026, with a retroactive effective date for tax years beginning after December 31, 2025. However, the Pennsylvania Department of Revenue has announced that it will begin enforcing the new rules on October 1, 2026.
For ecommerce and remote sellers, this makes the customer’s delivery location more important than ever.
What Is Changing With Pennsylvania Sales Tax on October 1, 2026?
Pennsylvania’s general state sales tax rate remains 6%.
The important change involves the additional local sales taxes imposed in Philadelphia and Allegheny County. Previously, Pennsylvania’s local sales tax rules were generally based on the point of sale, where the vendor was located. The new rules move to a point-of-destination approach, meaning the local tax is based on where the taxable product or service is delivered.
The Pennsylvania Department of Revenue will begin enforcing these new rules from October 1, 2026. For online sellers shipping products throughout Pennsylvania, that is a significant change.
From October 1, 2026, businesses already required to collect Pennsylvania sales tax need to make sure they are also collecting Philadelphia’s 2% or Allegheny County’s 1% local sales tax when taxable sales are delivered to customers in those locations. For remote sellers, the customer’s delivery address can therefore determine whether the transaction is taxed at 6%, 7% or 8%.
Pennsylvania Sales Tax Rates From October 1, 2026
The underlying tax rates themselves are not new. What changes is when sellers must apply the local tax.
| Customer’s Destination | State Tax | Local Tax | Total |
| Most of Pennsylvania | 6% | — | 6% |
| Allegheny County | 6% | 1% | 7% |
| Philadelphia | 6% | 2% | 8% |
For example, a remote seller shipping a taxable $1,000 order to Philadelphia would generally collect:
$1,000 × 8% = $80
The same taxable order delivered elsewhere in Pennsylvania, outside Philadelphia and Allegheny County, would generally attract $60 of Pennsylvania sales tax.
Why Does This Matter for Remote Sellers?
The change is particularly important for businesses selling online. Consider a business based in Florida that sells products through its own website. The business already has Pennsylvania sales tax nexus and is registered to collect Pennsylvania sales tax.
It receives three taxable orders:
- $500 delivered to Philadelphia
- $500 delivered to Pittsburgh in Allegheny County
- $500 delivered elsewhere in Pennsylvania
Under the new destination-based local rules, the seller needs to recognise the customer’s destination and apply the appropriate rate:
- Philadelphia order: 8%
- Allegheny County order: 7%
- Other Pennsylvania order: 6%
This means remote sellers cannot simply apply a blanket 6% rate to every Pennsylvania customer.
Do Remote Sellers Have to Collect the New Local Taxes?
If your business is already required to collect and remit Pennsylvania’s 6% sales tax, the Department of Revenue says you must also collect and remit the applicable:
- 2% Philadelphia local sales tax, or
- 1% Allegheny County local sales tax
when making taxable sales to customers in those locations.
This applies even if your business itself is located somewhere else. The important factor under the new rule is the destination of the taxable sale.
What About Shopify and Other Ecommerce Stores?
Businesses selling directly through platforms such as Shopify, WooCommerce and BigCommerce should check their tax settings before October 1.
Your system needs to be capable of identifying when a Pennsylvania customer’s delivery address falls within:
- Philadelphia
- Allegheny County
- The rest of Pennsylvania
This is especially important because ZIP codes do not always perfectly follow county or city boundaries.
Pennsylvania’s Department of Revenue specifically recommends using reliable address information to determine whether a customer’s destination falls within Philadelphia or Allegheny County. A tax engine or ecommerce platform using accurate address-based tax calculations can therefore become increasingly important.
What About Amazon and Marketplace Sellers?
Marketplace sellers need to distinguish between marketplace sales and their own direct sales. Where a marketplace facilitator is legally responsible for collecting and remitting Pennsylvania sales tax on a transaction, the marketplace generally handles the applicable tax collection.
However, a business selling through both:
- Amazon, Walmart or another marketplace, and
- Shopify or its own website
may still have its own collection responsibilities for direct sales.
Do not assume that because Amazon handles sales tax on marketplace orders, your Shopify or website sales are automatically covered too.
Do You Need to Register for Pennsylvania Sales Tax?
The October 1 change does not automatically create nexus for every business selling into Pennsylvania. It changes the local tax collection rules for vendors that are already required to collect Pennsylvania sales tax.
Remote sellers should therefore ask two separate questions:
1. Do I have Pennsylvania sales tax nexus?
If yes, registration may be required.
2. If I am registered, am I applying the correct local tax to Philadelphia and Allegheny County orders?
This second question becomes particularly important from October 1. If you’re approaching Pennsylvania’s economic nexus threshold or have another form of nexus in the state, now is a good time to review your registration position rather than waiting until you receive a notice.
Example: Shopify Seller Shipping to Philadelphia
Imagine an ecommerce company based in Texas. It is already registered for Pennsylvania sales tax and sells directly through Shopify. A customer orders $200 of taxable products for delivery to Philadelphia.
From October 1, the seller needs to account for:
Pennsylvania state sales tax: 6% = $12
Philadelphia local sales tax: 2% = $4
- Total sales tax: $16
If the business’s checkout system only charges Pennsylvania’s 6% state rate, it would collect $12 instead of the required $16.
Across hundreds or thousands of transactions, that difference can quickly create a sales tax liability.
What If You Don’t Collect the Extra Local Tax?
This is where the change becomes a compliance issue rather than simply a checkout issue. If a business is required to collect tax but undercharges the customer, the tax liability does not necessarily disappear. The seller could potentially find itself having to pay the missing tax from its own funds.
For businesses making significant sales into Philadelphia or Allegheny County, repeatedly under-collecting by 1% or 2% could become expensive. That is why businesses should review their systems before enforcement begins on October 1, 2026.
What Should Ecommerce Sellers Do Before October 1?
Businesses making taxable Pennsylvania sales should review their position now.
Check your Pennsylvania nexus
Determine whether your sales or physical activities create a Pennsylvania registration obligation.
Check your registration
If you already have nexus, make sure your Pennsylvania sales tax account is active and correctly set up.
Review your ecommerce platform
Confirm that Shopify, WooCommerce, BigCommerce or your tax software can correctly identify Philadelphia and Allegheny County destinations.
Test some orders
Run test transactions using addresses in:
- Philadelphia
- Pittsburgh
- Another Pennsylvania location
Check whether the expected 8%, 7% and 6% rates are being calculated correctly.
Review your filing process
Make sure Philadelphia and Allegheny County local tax is being reported correctly rather than simply collected at checkout.
Common Colorado Retail Delivery Fee Mistakes
The October change could catch out businesses that assume Pennsylvania sales tax is always 6%. Common problems include:
- Charging 6% on every Pennsylvania order
- Applying local tax based on the seller’s location rather than the customer’s destination
- Updating Shopify but not another sales channel
- Confusing marketplace sales with direct website sales
- Using inaccurate ZIP-code mapping
- Collecting the correct tax but reporting it incorrectly
- Having Pennsylvania nexus without being registered
For remote sellers, correct registration, calculation and filing all matter.
FAQs
Is Pennsylvania sales tax changing on October 1, 2026?
Pennsylvania’s 6% state sales tax rate is not changing. The important change is the enforcement of new destination-based local sales tax rules for Philadelphia and Allegheny County.
What is the sales tax rate in Philadelphia?
The combined rate is 8%, consisting of Pennsylvania’s 6% state tax plus Philadelphia’s 2% local sales tax.
What is the sales tax rate in Allegheny County?
The combined rate is 7%, consisting of the 6% Pennsylvania state rate plus a 1% local tax.
Do online sellers have to collect Philadelphia sales tax?
If a seller is required to collect Pennsylvania sales tax and makes a taxable sale delivered to a customer in Philadelphia, the new rules generally require collection of the additional 2% local tax.
Does this affect Amazon sellers?
Marketplace facilitators generally handle sales tax on transactions for which they are legally responsible. However, Amazon sellers that also make direct sales through Shopify or another website should review those direct sales separately.
Final Thoughts
Pennsylvania’s October 1 change may look relatively small, but it creates an important compliance issue for ecommerce businesses. If you’re already required to collect Pennsylvania sales tax, the customer’s destination can now determine whether you need to collect 6%, 7% or 8% on a taxable transaction.
That makes accurate address sourcing, ecommerce tax settings and filing more important, particularly for remote sellers making significant sales into Philadelphia and Allegheny County. With enforcement beginning October 1, 2026, businesses have little time left to check their setup.
RJM Tax Exemption can review whether your business has Pennsylvania sales tax nexus, register your business for Pennsylvania sales tax where required, and manage your ongoing state and local sales tax filings.
If you’re unsure whether your business needs to register, or whether your current Pennsylvania setup is correct, schedule a meeting with RJM Tax Exemption today.
