Philadelphia sales tax guide
Shopping in Philadelphia means paying one of the higher combined sales tax rates in Pennsylvania: 8%, against a statewide average combined rate of 6.34%. Among the 30 major US cities we track, Philadelphia ranks 19 by combined rate. This guide shows how the rate is built and what it adds to real purchases.
How the Philadelphia rate is built
Pennsylvania has only two local sales taxes — Philadelphia adds 2% (Allegheny County adds 1%). Most clothing and footwear are fully exempt statewide with no price cap, and groceries are exempt.
No single government sets the 8% figure. The state of Pennsylvania sets the base rate of 6%, and county, city and special-district taxes stack on top of it. That stacking is why the rate can change across a city boundary — and why the address of the sale, not the seller's home address, decides the tax on most transactions.
What the rate does to real purchases
| Purchase | Tax at 8% | Total |
|---|---|---|
| $25 purchase | $2 | $27 |
| $100 purchase | $8 | $108 |
| $500 purchase | $40 | $540 |
| $1,000 purchase | $80 | $1,080 |
| $10,000 purchase | $800 | $10,800 |
| $35,000 car (where vehicles are taxed at sale) | $2,800 | $37,800 |
Groceries: Groceries are generally exempt from the state sales tax; local rules can differ. Most clothing is also exempt in Pennsylvania. Prepared food and restaurant meals are taxed at the full rate in most jurisdictions, even where groceries for home consumption are exempt or reduced.
Philadelphia vs other major US cities
Philadelphia is the Pennsylvania city we track in detail. Set against the extremes of the 30-city dataset (average 7.93%), its position is clear:
| City | Combined rate | Tax on $1,000 |
|---|---|---|
| Philadelphia (this guide) | 8% | $80 |
| Seattle — among the highest | 10.35% | $103.5 |
| Chicago — among the highest | 10.25% | $102.5 |
| Portland — among the lowest | 0% | $0 |
| Louisville — among the lowest | 6% | $60 |
What this means in Philadelphia
On planned purchases the rate is a line item, not a rounding error: $800 on $10,000, which is $166 more than the same purchase at the Pennsylvania average rate. Households near a lower-rate city boundary sometimes route vehicles, appliances and furniture purchases accordingly; on weekly spending, the difference is a few dollars a month and rarely worth a trip.
Selling in Philadelphia
If your business delivers into Philadelphia, the rate your customer pays is generally the combined rate at their address. Once your Pennsylvania sales pass the state's economic-nexus threshold you must register, collect and remit — the threshold and filing basics are covered on the Philadelphia sales tax page, and the statewide picture is in the Pennsylvania tax guide.
Sales tax · combined rate
Property tax · average effective
Chart: DailyFinance.tools · Rates are reviewed averages from our state tax dataset — your exact local rate may differ.
Philadelphia sales tax FAQs
What is the sales tax rate in Philadelphia?
The combined sales tax rate in Philadelphia is approximately 8%, made up of the Pennsylvania state rate plus county, city and district taxes. Pennsylvania has only two local sales taxes — Philadelphia adds 2% (Allegheny County adds 1%). Most clothing and footwear are fully exempt statewide with no price cap, and groceries are exempt.
How much tax do I pay on a $100 purchase in Philadelphia?
At 8%, a $100 taxable purchase in Philadelphia carries about $8 in sales tax, for a total of $108. On $1,000 the tax is $80; on $10,000 it is $800.
Why is the Philadelphia rate different from the rest of Pennsylvania?
Sales tax is stacked: the state sets a base rate and local governments add their own. Philadelphia adds local layers that bring the combined rate to 8%, compared with a statewide average combined rate of about 6.34% — a gap of 1.66 points.
How does Philadelphia compare with other US cities?
Philadelphia ranks 19 of the 30 major cities in our dataset by combined rate (dataset average 7.93%). The highest is Seattle at 10.35% and the lowest is Portland at 0%. Against the all-state average combined rate of 6.61%, Philadelphia is 1.39 points higher.
Are groceries taxed in Philadelphia?
Groceries are generally exempt from the state sales tax; local rules can differ. Most clothing is also exempt in Pennsylvania.
Where can I verify the exact rate for a Philadelphia address?
The 8% figure is the typical combined rate inside city limits; district taxes can shift it block by block. Verify the rate for a specific address with the Pennsylvania Department of Revenue before a major purchase or a filing.
Reviewed by Tahir Shehzad, ACMA · State tax data reviewed November 2026 against official sources — see our Methodology and Editorial Policy. Figures are educational estimates, not tax or financial advice. For a filing decision, confirm with the Pennsylvania Department of Revenue.