The Pittsburgh sales tax is 7%. That figure combines Pennsylvania’s 6% statewide sales tax with an extra 1% Allegheny County tax that funds regional parks, libraries, and cultural institutions through the Allegheny Regional Asset District. The 7% rate applies to most tangible goods, a defined list of services, and digital products. Everyday clothing, groceries for home consumption, and most medicines are exempt.
How the 7% Rate Is Built
Pennsylvania imposes a 6% sales tax on retail purchases of taxable goods and services statewide.1Department of Revenue. Tax Rates Allegheny County layers an additional 1% local tax on top, authorized under the Second Class County Code at 16 P.S. ยง 6152-B.2Legal Information Institute. Pennsylvania Code 61 Pa Code 60.16 – Local Sales, Use and Hotel Occupancy Tax That local piece has been in place since July 1, 1994, and applies to every taxable transaction originating in the county, Pittsburgh included.
The 1% county levy funds the Allegheny Regional Asset District, a special-purpose government entity supporting regional parks, libraries, cultural institutions, sports facilities, and civic programs.3Pittsburgh, PA. Allegheny Regional Asset District (ARAD) Because of that, you’ll sometimes see it called the RAD tax. Retailers collect the full 7% at the register and remit it to the Pennsylvania Department of Revenue, which then routes the local share back to the county.
Only two places in Pennsylvania add a local sales tax at all: Allegheny County at 1% and Philadelphia at 2%. Everywhere else in the state, the rate stays a flat 6%.4Department of Revenue. Sales, Use and Hotel Occupancy Tax
What the 7% Applies To
Physical Goods and Vehicles
The tax covers most retail products: furniture, electronics, appliances, home improvement materials, and similar tangible items.4Department of Revenue. Sales, Use and Hotel Occupancy Tax Motor vehicles are taxable too, but you pay the 7% when applying for title or registration rather than at the dealer counter.5Pennsylvania Department of Revenue. Retailer’s Information (REV-717) Trade in an old car when you buy, and the trade-in value comes off the price before tax is figured, so you only pay 7% on the difference.
Taxable Services
Pennsylvania doesn’t tax services broadly. It taxes a specific list. Services on that list that surprise people include secretarial and editing work, lobbying, building cleaning and maintenance, and lawn care.6Pennsylvania Code. Pennsylvania Code 61 Pa Code 9.3 – Additional Services Which Are Subject to Tax Repairs to tangible personal property, such as computer repair or small-engine service, are taxable.7Pennsylvania Department of Revenue. Is There a List of Services Subject to PA Sales and Use Tax? Telecommunications charges, including mobile service and long-distance calling, fall under the tax as well.8Legal Information Institute. Pennsylvania Code 61 Pa Code 60.20 – Telecommunications Service
Prepared food from restaurants and caterers is taxable. Raw groceries you take home to cook are not, and the grocery rule gets its own treatment below.
Digital Products and Software
Since Act 84 of 2016 rewrote this corner of the tax code, digitally delivered products get the same treatment as physical goods. The 7% applies to downloaded or streamed video, music, e-books, photographs, apps, games, and canned software, whether purchased outright or accessed by subscription.9Department of Revenue. Taxability of Canned Computer Software, Digital Goods, and Related Services Software licenses are taxable regardless of delivery method. Buyers routinely underpay here when a vendor doesn’t collect Pennsylvania tax at checkout.
What’s Exempt
Clothing and Footwear
Everyday clothing and shoes for ordinary wear are exempt: shirts, pants, dresses, socks, sneakers, winter coats. The exemption does not cover formal evening wear, fur articles, sporting clothing designed only for athletic use, accessories such as jewelry and handbags, or ornamental wear.10Legal Information Institute. Pennsylvania Code 61 Pa Code 53.1 – Clothing A pair of running shoes worn casually can qualify as everyday footwear; ski boots built purely for sport do not.
Groceries
Unprepared food purchased for home consumption is tax-free.4Department of Revenue. Sales, Use and Hotel Occupancy Tax That covers produce, meat, dairy, canned goods, bread, and the rest of standard grocery inventory. The line between exempt groceries and taxable prepared food comes down to whether the item is ready to eat when it leaves the store. A rotisserie chicken from the deli is taxable. A raw chicken from the meat case is not.
Medicines and Medical Devices
Prescription and nonprescription medicines are exempt. Therapeutic and prosthetic devices designed for a specific individual’s use, including wheelchairs, hearing aids, and oxygen equipment, are also exempt. General medical equipment that doesn’t meet the therapeutic or prosthetic definition remains taxable.11Legal Information Institute. Pennsylvania Code 61 Pa Code 52.1 – Purchases of Medicines, Medical Supplies, Medical Equipment and Prosthetic or Therapeutic Devices The test is whether the device is designed to correct or alleviate a physical condition for a particular person.
Purchases for Resale or Manufacturing
Businesses buying inventory for resale or raw materials for manufacturing can purchase tax-free using a Pennsylvania Exemption Certificate, Form REV-1220.12Pennsylvania Department of Revenue. Pennsylvania Tax Exemption Certificate (REV-1220) The buyer must supply a valid sales tax license number and describe the intended use, and the seller must keep the certificate on file for at least four years. Misusing an exemption certificate carries criminal penalties.
The Alcohol Tax Stacks on Top
Allegheny County also imposes a separate 7% tax on retail sales of alcoholic beverages, including beer, wine, and mixed drinks served at bars and restaurants. This tax is not part of the regular sales tax. It stacks on top. Order a drink at a Pittsburgh restaurant and you effectively pay 14% in combined taxes on the beverage portion of the check. Purchases from state liquor stores and beer distributors are exempt from this additional tax, as are complimentary drinks.13Allegheny County Treasurer Office. Alcoholic Beverage Tax
Use Tax on Online and Out-of-State Purchases
Buy something from a seller who doesn’t collect Pennsylvania tax, then use, store, or consume the item in Pittsburgh, and you owe use tax at the same 7% rate.14Department of Revenue. Use Tax Use tax exists so out-of-state and online sellers don’t have a built-in price advantage over local stores. After the Supreme Court’s 2018 decision in South Dakota v. Wayfair, most large online retailers collect Pennsylvania tax automatically, but smaller sellers and private-party transactions still slip through.
Individuals are expected to report unpaid use tax on their annual Pennsylvania income tax return. The obligation applies to physical goods and digital products alike. If you bought software from a vendor that didn’t charge Pennsylvania tax, you owe 7% on it.14Department of Revenue. Use Tax Most people don’t track these purchases, which is how use tax liabilities accumulate quietly over the year.
If You’re the Business Collecting the Tax
Any business making taxable sales in Pittsburgh must register for a Sales, Use, and Hotel Occupancy Tax license through the Department of Revenue’s myPATH portal before collecting tax.15Department of Revenue. Register My Business for Taxes Registration is free, and once approved you receive an eight-digit license number that goes on your exemption certificates and returns.
Filing frequency, monthly, quarterly, or semi-annual, is set by the Department based on your third-quarter tax liability, and returns are due by the 20th of the month following each period.16Pennsylvania Department of Revenue. How Is My Filing Period for Sales Tax Determined? File on time with full payment and you can claim a vendor discount of 1% of the tax collected, subject to a modest cap that depends on your filing frequency.5Pennsylvania Department of Revenue. Retailer’s Information (REV-717) Miss the deadline and the Department adds a 5% penalty for the first month, another 5% for each additional month up to 25%, plus interest at 7% per year for 2026.17Pennsylvania Department of Revenue. What Is the Current Interest Rate? A return is required for every period even when you had no taxable sales.