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Pennsylvania Switches to Destination-Based Local Sales Tax Sourcing

  • Pennsylvania is switching Philadelphia and Allegheny County local sales taxes from origin-based to destination-based sourcing.
  • Vendors must collect the local tax based on where taxable goods or services are delivered, not where the seller is located.
  • This means deliveries into Philadelphia generally face 8% total tax, and deliveries into Allegheny County generally face 7% total tax.
  • The law is effective January 1, 2026, but enforcement begins October 1, 2026.
  • Businesses should update tax systems and compliance processes before enforcement starts.

Source: bdo.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.



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