Pennsylvania moves Philadelphia and Allegheny local sales tax to destination sourcing, not enforced before 1 October 2026
This page records one dated change. For the rules in United States as they stand today, see the United States guide →
- Jurisdiction
- United States
- Tax
- Sales tax
- Change type
- Compliance
- Status
- In force
- Impact
- Action required
- Effective
- 1 October 2026
- Authority
- Pennsylvania Department of Revenue
- Systems
- Tax engine, E-commerce, POS, Invoicing
- Verified
- Fetched from official source · high confidence
Vendors collecting the 6% Pennsylvania sales tax who deliver goods or services into Philadelphia or Allegheny County.
Source Philadelphia and Allegheny local sales tax to the delivery address from 1 October 2026.
Tax engineE-commercePOSInvoicing
Pennsylvania Act 21 of 2026 (enacted 12 July 2026, retroactive to tax years after 31 December 2025) moves the Philadelphia 2% and Allegheny County 1% local sales tax from point-of-sale to point-of-destination sourcing; vendors already collecting the 6% state tax must collect the local tax on sales delivered into those counties. The Department of Revenue will not begin enforcing before 1 October 2026.
What changed in detail
Pennsylvania Act 21 of 2026, enacted on 12 July 2026 and retroactive to tax years after 31 December 2025, moves the Philadelphia 2% and Allegheny County 1% local sales taxes from point-of-sale to point-of-destination sourcing.
Vendors already collecting the 6% state sales tax must collect the local tax on sales delivered into those counties. The Department of Revenue will not begin enforcing before 1 October 2026.
What it means
The practical shift is for sellers outside the two counties who deliver into them: where the product or service is delivered, not where the sale is made, now decides whether the local tax applies. Remote and out-of-county sellers with deliveries into Philadelphia or Allegheny need to update their tax determination logic.
The Act is retroactive to 2026, but the Department’s stated enforcement start is 1 October 2026. Do not read the enforcement date as the date the rule changed.
Proof
Local sales tax is now based on point of destination (i.e., where the product or service is delivered).
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