Month-end close: sales tax in Pennsylvania

Pennsylvania's sales tax is 6%, with 1% more in Allegheny County and 2% more in Philadelphia, and a return is due even with no sales.

This is part of the sales tax checklist. Pennsylvania sales and use tax is filed with the Pennsylvania Department of Revenue.

Rate. 6% state sales tax, plus 1% local tax in Allegheny County and 2% in Philadelphia. Use tax is at the same rate on taxable purchases made without tax.

Filing. Monthly, quarterly or semi-annual. A return is filed whether or not taxable transactions occur in the period. A monthly filer whose liability for the third quarter of the previous year was $25,000 or more also makes prepayments.

Due. Monthly: the 20th of the following month. Quarterly: April 20, July 20, October 20 and January 20. Semi-annual: August 20, 2026 and February 22, 2027.

The trap. A monthly filer with a prepayment requirement makes its prepayment by the 20th of the current month, and files the return and pays the balance by the 20th of the following month. A return is still due for a month with no sales.

The month-end steps

1. Confirm the filing frequency. The Department of Revenue assigns the client to monthly, quarterly or semi-annual returns. Use the frequency in the client's myPATH account. Done when the frequency on file matches the account.
2. Check the rate. The sales tax rate is 6%. By law, 1% local tax is added to purchases made in Allegheny County, and 2% in Philadelphia [1]. Use tax is due at the same rate on taxable purchases made without tax [1]. Done when each taxable sale carries the right rate for where the sale was made.
3. Check for a prepayment requirement. A monthly filer whose actual tax liability for the third calendar quarter of the previous year is $25,000 but less than $100,000 must pay 50% of its liability for the same month of the previous year, or at least 50% of its actual liability for the same month of the current year. A filer remitting $100,000 or more for that quarter must remit 50% of the liability due for the same month of the previous year. Prepayments are due by the 20th of the current month [2]. Done when each monthly client has been checked against the $25,000 line.
4. Work out the 2026 due dates. Returns are due on these dates, and are filed whether or not taxable transactions occur in the period [2]:

A monthly filer with a prepayment requirement makes its prepayment by the 20th of the current month, for example January 20 for the January 31 period, and files the return and pays the balance by the 20th of the following month [2]. Done when each return's due date is on the client's calendar. 5. Tie the liability. Done when the sales tax payable account is at zero after the period's payment, or equals the tax not yet due.