Pennsylvania law requires the payment of use tax by any individual or business entity that purchases taxable goods or services delivered into or used in Pennsylvania if sales tax is not collected by the vendor. Use tax is the counterpart of the state and local sales tax.
The use tax rate is the same as the sales tax rate: 6 percent state tax, plus an additional 1 percent local tax for items purchased in, delivered to or used in Allegheny County, and 2 percent local tax for items purchased in, delivered to or used in Philadelphia.
When the Pennsylvania Department of Revenue receives information on purchases where use tax is owed but was not paid, it will assess the purchaser for not only the tax, but also penalty and interest for late payment. Marketplace facilitators, remote sellers and marketplace sellers are required to provide the Department of Revenue with annual reports that include the names of each purchaser and total dollar amounts of these purchases.
PA40 – Line 25
Individuals have the option of paying use tax on their personal purchases by using line 25 on the PA-40 Personal Income Tax Return. Use tax reported and remitted as part of the return is considered timely filed if the income tax return is timely filed.
PA 1 – Individual Use Tax Return.
The PA-1 may be used by individuals or business entities. The form is designed for nonrecurring purchases. Use tax reported on the PA-1 is due on the 20th day of the month following the month that the items were purchased.
Sales Tax Return
Businesses who are registered to collect and remit Pennsylvania sales tax may remit use tax as part of their sales tax returns.
Use Tax Registration
Business entities who have recurring use tax liabilities but are not required to be registered to collect sales tax are encouraged to obtain a use tax number from the Department of Revenue. A use tax account can be opened at this web address: https://www.pa100.state.pa.us/Registration.htm.