Pennsylvania has a statewide sales tax rate of 6%. This rate applies uniformly across all tangible personal property and certain services unless specifically exempted by state law. An additional local sales tax applies in certain areas within the state. For instance, Allegheny County, which includes Pittsburgh, adds a 1% local sales tax, and Philadelphia County charges another 2%, bringing their total sales tax rates to 7% and 8% respectively as of 2024.

Pennsylvania uses sales tax revenue to fund a variety of state and local services including education, transportation, and healthcare. The additional local tax in places such as Philadelphia and Pittsburgh helps address the unique fiscal needs of those larger urban centres, which often face higher costs for infrastructure and public services.

Below, we’ll explain how Pennsylvania applies sales tax to clothing and what businesses need to know to stay compliant.

What’s in this article?

• Is there sales tax on clothing in Pennsylvania?
  
• Is there sales tax on laundry services in Pennsylvania?
  
• Sales tax refunds in Pennsylvania
  
• How to automate sales tax collection in Pennsylvania
  

Is there sales tax on clothing in Pennsylvania?

In Pennsylvania, most clothing is exempt from sales tax. This includes:

• Clothing for everyday wear, such as shirts, trousers, dresses, skirts, jumpers, jackets, blouses, underwear, socks, and pyjamas

• Footwear designed for everyday wear such as shoes, boots, sandals, and slippers

Exceptions

Certain types of clothing and accessories are taxable, including formal wear and some sports and recreational equipment. The following types of clothing are not exempt and are subject to sales tax:

• Formal wear such as tuxedos and evening gowns

• Accessories including belts, suspenders, scarves, hats, and gloves

• Sporting goods such as athletic uniforms, helmets, pads, gloves (baseball, boxing, etc.), bathing caps, and hunting clothing

• Fur clothing, whether it’s real or an imitation, including any items where fur is the most valuable component

• Protective clothing such as safety goggles, hard hats, and steel-toed boots

For a more detailed list of taxable and exempt items, you can refer to the Pennsylvania Department of Revenue’s official publication “Retailer’s Information” (REV-717).

Is there sales tax on laundry services in Pennsylvania?

No, laundry services are not taxed in Pennsylvania. These include wash and fold, dry cleaning, pressing, any other laundry service performed by a business, and self-service laundrettes. Charges for altering or repairing clothing are generally non-taxable, but alterations on formal wear are taxed when purchased in conjunction with the original formal wear purchase.

Sales tax refunds in Pennsylvania

In Pennsylvania, businesses and individuals might be eligible for sales tax refunds under specific circumstances. The state allows refunds for sales tax paid in error, overpayment of sales taxes, or when tax-exempt items have been incorrectly taxed.

To claim a sales tax refund in Pennsylvania, the claimant must file a petition for refund with the Pennsylvania Department of Revenue. This petition must be filed within three years of the payment of the tax or within six months of the final determination of an audit, whichever period expires later. The petition must include detailed information about the transaction and the justification for the refund, such as receipts and documentation that proves the tax was paid and proves it was either incorrect or exempt.

How to automate sales tax collection in Pennsylvania

Tools such as Stripe Tax can make it much easier to collect, calculate, and report sales tax. Here’s how to handle sales tax collection in Pennsylvania using Stripe.

Registration

• If you’re not already using Stripe, create an account and activate Stripe Tax. It’s a separate feature within the Stripe Dashboard.

• Register your business with the Pennsylvania Department of Revenue to obtain a sales tax licence. This is necessary even if you’re using Stripe Tax.

Configuration in Stripe

• Once you’re registered, add your Pennsylvania sales tax licence information to your Stripe Tax settings. This will enable Stripe to calculate the correct tax rates for your transactions. If your business operates in multiple locations, configure Stripe Tax to automatically collect the correct local taxes based on the customer’s shipping address.

• Set up tax codes for your products and services based on their taxability in Pennsylvania. If you sell products or services that are exempt from sales tax in Pennsylvania, configure Stripe Tax to apply these exemptions.

• Activate automatic tax collection in your Stripe settings. Stripe will then calculate and add the correct sales tax to customer invoices and payments.

Reporting

Stripe Tax generates reports that summarise collected sales tax. This makes it easier to file your returns with the Pennsylvania Department of Revenue.