Pennsylvania has a 6% sales tax on most goods, but not on groceries or clothing

Pennsylvania charges a 6% sales tax on retail purchases of tangible goods. However, the state exempts two major categories: unprepared food (groceries) and clothing and footwear under $110 per item. This means your grocery bill stays the same, but your restaurant meal includes tax, and a $100 pair of shoes does not.

The tax applies at the point of sale — the cashier rings it in, and you pay it then. Pennsylvania does not have a local sales tax on top of the state rate, so the 6% is the only sales tax you owe anywhere in the state. This is different from states like New York or California, where cities and counties add their own percentage on top.

Services are generally not taxed in Pennsylvania. A haircut, a car repair, or a plumber's labor does not trigger sales tax. But if you buy a product as part of that service — like a bottle of shampoo at the salon or a replacement part at the mechanic — that product is taxed.

Key Takeaways

  • Pennsylvania's sales tax rate is 6% statewide, with no additional local sales tax added by cities or counties.
  • Groceries and unprepared food are exempt from sales tax, but prepared food, restaurant meals, and takeout are taxed.
  • Clothing and footwear under $110 per item are exempt; items $110 or more are fully taxed.
  • Services like haircuts, repairs, and labor are not taxed, but products sold during those services are.
  • Online purchases from out-of-state sellers may or may not include Pennsylvania tax depending on whether the seller has a physical presence in the state.

What counts as groceries and stays tax-free

The grocery exemption covers unprepared food — items you take home and cook or eat raw. Milk, bread, eggs, vegetables, meat, cheese, cereal, and canned goods are all exempt. The rule is straightforward: if it requires preparation at home, it is not taxed.

The moment food is prepared for when ready consumption, the exemption ends. A rotisserie chicken from the grocery store deli counter is taxed. A sandwich from the deli section is taxed. Bakery items that are ready to eat — like a donut or a slice of cake — are taxed. But a loaf of bread you bake at home is not.

Beverages follow the same rule. Bottled water, milk, and juice you buy to take home are exempt. A soda or coffee you buy at a café is taxed. Alcohol is a separate category and is taxed regardless of whether it is prepared.

Clothing exemption and the $110 threshold

Pennsylvania exempts clothing and footwear under $110 per item. This means a $50 shirt, a $80 pair of jeans, and a $100 pair of shoes are all tax-free. A $150 coat is fully taxed because it exceeds the threshold.

The threshold applies per item, not per purchase. If you buy five $20 shirts in one transaction, none of them are taxed. If you buy one $150 jacket, the entire price is taxed. Accessories like hats, belts, scarves, and gloves are treated as clothing and follow the same $110 rule.

Items that are not clothing — like sports equipment, luggage, or handbags — are taxed regardless of price. A $50 backpack is taxed because it is not classified as clothing, even though a $50 shirt is not.

Services, labor, and what happens when they include products

Pennsylvania does not tax services. You do not pay sales tax on a doctor visit, a dental cleaning, a haircut, car repair labor, or plumbing services. The labor itself is exempt.

But if a product is sold as part of that service, the product is taxed. A salon that sells you a bottle of shampoo charges tax on the shampoo, even though the haircut itself is not taxed. A mechanic who replaces your brake pads charges tax on the pads but not on the labor to install them. A dentist who applies a sealant does not charge tax on the service, but if they sell you a toothbrush, that is taxed.

This distinction matters for your receipt. A service bill may show labor and products separately, with tax applied only to the products line.

Online purchases and out-of-state sellers

Whether you pay Pennsylvania sales tax on an online purchase depends on whether the seller has a physical presence in Pennsylvania — a warehouse, office, or store location. If they do, they must collect Pennsylvania tax. If they do not, they typically do not.

However, Pennsylvania residents are technically required to pay use tax on purchases from out-of-state sellers where no sales tax was collected. Use tax is the same rate as sales tax (6%) and is meant to level the playing field between local and remote sellers. In practice, few people report use tax on their personal returns, but it is a legal obligation if you buy taxable items from a seller with no Pennsylvania presence.

Large online retailers like Amazon have physical operations in Pennsylvania and collect the state's sales tax on most purchases. Smaller sellers may not, and you would owe use tax on those purchases if you want to comply fully.

Tax-exempt purchases and who qualifies

Certain organizations and people can buy goods without paying sales tax if they have a resale certificate or tax-exempt status. Nonprofits, schools, and government agencies typically may have access to. A business buying inventory to resell can use a resale certificate to avoid tax on those purchases.

Individual shoppers do not have a blanket exemption. You cannot claim tax-exempt status just because you are buying something for personal use, even if it is for a charitable purpose. The exemption is tied to the organization's status, not the buyer's intent.

If you work for a tax-exempt organization and need to make a purchase on its behalf, ask your employer for the resale certificate or tax-exempt form to present at checkout.

Frequently Asked Questions

Do I pay sales tax on a restaurant meal or takeout?

Yes. Both dine-in and takeout meals are taxed at 6%. The exemption covers only unprepared food you buy at a grocery store. Prepared food — whether you eat it there or take it home — is taxed.

Is a $110 pair of shoes taxed or not?

A shoe that costs exactly $110 is taxed because the exemption applies to items under $110. The threshold is strict: $109.99 is exempt, $110.00 is taxed. Check the price tag before checkout if you are close to the line.

What about vitamins and over-the-counter medicine?

Vitamins and over-the-counter drugs like cold medicine and pain relievers are taxed in Pennsylvania. Only prescription medications are exempt. This is a common point of confusion at the pharmacy.

If I buy something online from a company with no Pennsylvania location, do I owe tax?

You are technically required to pay use tax (6%) on taxable items, but the seller does not collect it. Most people do not report it on their personal returns. If you want to comply, you can report the amount on your Pennsylvania income tax return.

Are diapers and baby formula taxed?

Yes. Diapers and baby formula are taxed at 6%. Pennsylvania does not have a separate exemption for these items, even though some other states do.