Pennsylvania has several taxes for various industries in addition to sales and use taxes.

Sales and use tax for sales of goods and services

Pennsylvania taxes sales of tangible personal property and some services at 6 percent. Some counties or municipalities add discretionary sales and use tax. Business owners must pay use tax if they purchase taxable goods or services without paying tax and store or use them instead of reselling.

An individual who purchases taxable goods and does not pay the sales tax at the time of purchase must also pay use tax. This might happen if someone purchases goods from out of state and the seller does not charge sales tax. The use tax return is the same as the sales tax return.

Alcoholic beverage taxes

Pennsylvania has three alcoholic beverage taxes.

• Direct wine shipments: In addition to the state and local sales taxes, direct wine shipments are subject to a $2.50 per gallon excise tax. Pennsylvania’s liquor tax does not apply to direct wine shipments.
• Malt beverage tax: Malt and brewed beverages manufactured or sold in Pennsylvania or manufactured out of state but sold in Pennsylvania are taxed. The manufacturers, distributors, and importers remit the tax but pass it onto consumers. The malt beverage tax is $2.48 per gallon.
• Liquor tax: The state levies an 18-percent tax on the distribution of liquor. The first sale of liquor, e.g., to a retailer, is the sale that is taxed. The manufacturers include the cost of the tax in their products, which is eventually passed onto the consumer.

Motor vehicle rental surcharge tax

Pennsylvania has several rental and tire surcharge taxes. The taxes are in addition to sales and use tax and other taxes levied on vehicle rentals. When figuring the tax, do not tax one tax with another. For example, if a vehicle rental is $100, figure the sales tax on $100, the vehicle rental tax on $100, and the other taxes on $100.

• Tires: $1 per new tire. Only new tires for highway use are taxed. Off-road tires and used tires are not subject to this fee.
• Motor vehicle rentals: $2 per rental day or part of a rental day if the rental is for fewer than 30 days.
• Motor vehicle leases: 3 percent tax on the total lease payment, including the down payment and any accelerated lease payments.

Additionally, Pennsylvania levies a 2-percent vehicle rental tax on rental companies that rent vehicles designed to carry 15 or fewer passengers if the rental agency has five or more motor vehicles. The tax also applies to trucks, trailers and semi-trailers used to transport property that is not commercial freight. The tax is on vehicles rented for 29 or fewer consecutive days.

Carsharing services must also pay a tax as follows:

• Less than 2 hours: $0.25
• 2 to 3 hours: $0.50
• Over three hours, but less than 4 hours: $1.25
• 4 or more hours: $2.00

Accommodations tax

A room rental charge at the same rate as the sales tax rate – 6 percent – is levied on room rentals for 30 or fewer days by the same person. The tax also applies to rooms, apartments, and houses rented through third-party brokers or online. Accommodation fees charged by booking agents are also taxable at the 6-percent rate.

Gross receipts tax

Pennsylvania levies a gross receipts tax on several industries, including:

• Electric companies: 59 mills on gross receipts from electric energy sales. The tax is paid annually, and the due date is March 15.
• Telecommunications: 50 mills on gross receipts from telephone and telegraph messages transmitted within Pennsylvania. Included are mobile telecommunications services, international landline calls that originate or terminate in Pennsylvania, interstate calls, and calls billed to a service address within the state. The tax is payable yearly on March 15.
• Transportation: 50 mills on gross receipts from baggage, freight, and passengers transported in Pennsylvania. Intrastate shipments of freight and oil are also taxed. Transportation by railroad and motor vehicles is exempt. The tax is due annually on March 15.
• Private bankers: 1 percent on gross receipts from commissions on loans, discounts on loans, banking services, depositor account fees and charges, safe deposit box rentals, profits from the purchase and sale of securities, and interest on mortgages, bonds, dividends and premiums. The tax is due annually on February 15.
• Managed care organizations: 59 mills on gross receipts received by managed care organizations pursuant to a contract with the Pennsylvania Department of Public Welfare.

Motor fuel taxes

The motor fuel tax rates for 2022 are good through the calendar year. In addition to the motor fuel tax rates for various types of fuel, the business must pay a 1.1-cent per gallon underground storage tank fee to the Insurance Department. Motor fuel taxes include:

• Aviation gasoline: $0.060 per gallon
• Jet fuel: $0.020 per gallon
• Liquid fuels (gasoline for engines and gasohol): $0.576 per gallon
• Undyed diesel and undyed kerosene: $0.741 per gallon

e-911 tax

Retail businesses selling wireless telephones and pre-paid telecommunication services must collect and remit $1.65 per retail transaction for emergency-911 surcharges.

Discretionary taxes

In addition to the state sales tax of 6 percent, Allegheny County levies a 1-percent sales tax on retail sales. Philadelphia levies a 2-percent local tax to sales of tangible personal property.