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

For a full breakdown of the rules, see our Pennsylvania $100K economic nexus threshold guide.

• 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.

Comparing PA's Threshold to Other States

Pennsylvania's $100,000 single-revenue test is the most common pattern across states post-Wayfair. If you sell into Arizona as well, note that Arizona uses the same dollar threshold but a calendar-year measurement instead of a rolling 12 months — see our Arizona TPT nexus threshold ($100K) guide for the differences that matter when you're planning multi-state compliance.

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

Marketplace Facilitator Rules in Pennsylvania

Pennsylvania's marketplace facilitator law (Act 13 of 2019, effective July 1, 2019) shifts the sales-tax collection burden from individual third-party sellers to the platforms that process their transactions — once those platforms exceed $100,000 in PA gross sales over the prior 12 months. For most multi-channel sellers, this is the single most important PA nexus rule to understand, because it determines which of your sales channels you are personally responsible for and which are already handled by the platform.

What Counts as a Marketplace Facilitator in PA

Pennsylvania defines a marketplace facilitator as a person who (a) facilitates a retail sale on behalf of a marketplace seller by listing or advertising the seller's tangible personal property, and (b) directly or indirectly collects payment from the buyer and transmits it to the seller. Under that definition, the following platforms are treated as marketplace facilitators in PA and collect on your behalf:

• Amazon — collects PA sales tax on all third-party FBA and FBM transactions shipped to PA addresses
• eBay — collects on all PA-bound transactions through Managed Payments
• Etsy — collects on PA-bound orders, including handmade and vintage items
• Walmart Marketplace — collects on third-party seller orders shipped to PA
• Mercari, Poshmark, Depop, StockX, Reverb, eBid — all qualify and collect
• DoorDash, Uber Eats, Grubhub — qualify as facilitators for prepared food and beverage orders

Platforms That Are NOT Marketplace Facilitators

The most common confusion is over Shopify, BigCommerce, WooCommerce, and Squarespace Commerce. These are hosted commerce platforms — they provide the storefront infrastructure, but they do not list or advertise your products on a shared marketplace, and they do not collect payment in their own name. PA does not treat them as marketplace facilitators, so 100% of sales through these channels count toward your own $100,000 PA threshold and are your responsibility to collect once you register.

How Marketplace Sales Affect Your Threshold

This is where many sellers get caught. Pennsylvania's economic nexus threshold looks at your direct gross sales into PA over the prior 12 months. Sales made through marketplace facilitators that already collected and remitted are excluded from your individual threshold calculation. The practical effect:

• $300K on Amazon + $20K on Shopify = no individual registration required ($20K direct is under $100K)
• $300K on Amazon + $150K on Shopify = registration required (Shopify alone exceeds $100K)
• $80K on Amazon + $80K on Shopify + $50K wholesale = registration required ($130K direct is over $100K)

Marketplace Coverage Does Not Erase Physical Nexus

Marketplace facilitator collection covers the economic piece of your obligation on those specific channels — it does not cover physical presence nexus. If Amazon stores your FBA inventory in PA warehouses (Hazleton, Carlisle, Lewisberry, West Mifflin), you have physical presence nexus regardless of how Amazon files. You must register, even though your tax due on Amazon orders will typically be $0 because Amazon already remitted it. Many sellers file $0 PA returns on FBA-only volume to keep their compliance record clean and avoid IDOR-style enforcement letters from the PA Department of Revenue.

Reporting Marketplace Sales on Your PA-3 Return

If you are registered in PA and sell through both marketplace and direct channels, your PA-3 sales tax return reports total gross sales (line 1) and then deducts marketplace-facilitated sales (line 5, "exempt sales") so that tax is only calculated on the direct-channel portion. Keep marketplace 1099-K and tax-collected reports as documentation — PA DOR audits will reconcile your reported deductions against marketplace remittance records.

For the full breakdown of which platforms qualify and where the gaps are, see our Pennsylvania marketplace facilitator law guide and the cross-state marketplace facilitator laws by state comparison.

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