The Allentown PA sales tax is a flat 6%, matching Pennsylvania’s statewide rate with no local surcharge added on top.1Department of Revenue. Tax Rates Because Lehigh County adds nothing to the state rate, Allentown shoppers pay less at checkout than buyers in Philadelphia (8%) or Pittsburgh’s Allegheny County (7%). The tax applies to most tangible goods and many services, but Pennsylvania keeps groceries, everyday clothing, and medicine off the taxable list, so a large share of household spending rings up tax-free.
Why the Rate Stays at 6%
Pennsylvania law imposes a 6% sales tax on retail purchases of tangible personal property and certain services statewide.2Pennsylvania General Assembly. Pennsylvania Code 72 PS 7202 – Imposition of Tax State law authorizes only two local add-ons: 2% in Philadelphia and 1% in Allegheny County.3Department of Revenue. Sales, Use and Hotel Occupancy Tax Lehigh County isn’t on that list. So whether you’re buying furniture on Hamilton Street or a laptop at a big-box store off Route 22, the tax line on your receipt reads 6% and nothing more.
Hotel stays follow the same pattern. Allentown hotels carry Pennsylvania’s 6% hotel occupancy tax, and Lehigh County adds no local hotel tax on top.4Pennsylvania Department of Revenue. What Is the Hotel Occupancy Tax Rate?
What You’ll Pay Tax On
The default rule is simple: if you’re buying a physical product at retail in Allentown, it’s probably taxable at 6%. Electronics, appliances, household furniture, sporting goods, and most other tangible items all carry the tax. Motor vehicle purchases are taxed on the sale price, and if the Department of Revenue believes the stated price is suspiciously low compared to fair market value, it can reassess the tax based on what the vehicle is actually worth.5Pennsylvania Department of Revenue. Motor Vehicle Understated Value Program
Repair and Maintenance Services
Pennsylvania taxes many services performed on tangible personal property. Repairs, alterations, cleaning, and maintenance on items like appliances, electronics, and motor vehicles are all taxable. If a mechanic charges for an oil change or a shop repairs your dishwasher, the full charge is subject to the 6% tax.6Cornell Law Institute. 61 Pa Code 31.5 – Persons Rendering Taxable Services One exception worth knowing: repairs on clothing and footwear are exempt, so getting shoes resoled or a coat tailored won’t add tax to your bill.
Phone Service and Internet
Wireless phone plans and other telecommunications services are taxable in Pennsylvania, including cellular service, text messaging, and landline phone service.7Cornell Law Institute. 61 Pa Code 60.20 – Telecommunications Service Internet access is not taxed. Pennsylvania regulations classify internet access as an “enhanced telecommunication service” excluded from the taxable definition, and the federal Internet Tax Freedom Act permanently bars states from taxing internet access.8Office of the Law Revision Counsel. 47 USC 151 – Internet Tax Freedom Act Basic local telephone service for residential customers is also exempt.
Digital Products and Software
Since 2016, Pennsylvania has taxed digital products delivered electronically at the same 6% rate as physical goods. Streaming video subscriptions, downloaded music and ebooks, mobile apps, and digital games all fall under this rule. Canned software counts too, whether downloaded or accessed through the cloud as Software as a Service, when the user is located in Pennsylvania.9Pennsylvania Department of Revenue. What Are the Sales and Use Tax Consequences When Software as a Service (SaaS) Is Accessed Remotely?
What’s Tax-Free
Pennsylvania’s exemption list is broader than in many states, and it covers the categories that hit household budgets hardest.
Groceries and Beverages
Most food bought for home preparation is exempt. Produce, bread, cereal, meat, dairy, and other staples ring up tax-free at the register.10Pennsylvania General Assembly. Pennsylvania Code 72 PS 7204 – Exclusions from Tax Candy and gum are exempt here too, which isn’t the case everywhere. The line between taxable and tax-free comes down to preparation and intent:
- Taxable: restaurant meals, deli sandwiches sold ready to eat, hot prepared foods, and items sold with utensils suggesting immediate consumption.
- Tax-free: uncooked groceries, packaged foods meant for home preparation, coffee beans, and dry tea.
Beverages follow their own logic. Soft drinks, sports drinks, and flavored water are taxable. A brewed cup of coffee from a café is taxable, but a bag of coffee beans is not. Any food purchased with SNAP or WIC benefits is exempt regardless of category.
Clothing and Footwear
Everyday clothing and shoes are exempt from Pennsylvania sales tax.11PA Business One-Stop Hub. Business Licensing Reference Guides – Clothing Stores and Boutiques T-shirts, jeans, winter coats, sneakers, and similar wardrobe items all qualify. The exemption has edges that catch people off guard, though:
- Taxable: formal day or evening wear, accessories and ornamental items like jewelry, fur garments (where fur is the chief-value material), sporting goods, athletic clothing not worn outside of sports, and backpacks.
- Tax-free: ordinary garments, footwear, clothing patterns, and component materials for making clothing.10Pennsylvania General Assembly. Pennsylvania Code 72 PS 7204 – Exclusions from Tax
Medicine, Hygiene, and Home Utilities
Prescription and non-prescription medicines, medical supplies, and therapeutic devices are all exempt. That covers over-the-counter pain relievers, wheelchairs, hearing aids, and prosthetics.10Pennsylvania General Assembly. Pennsylvania Code 72 PS 7204 – Exclusions from Tax Pennsylvania also exempts personal hygiene products that many other states tax, including diapers, toilet paper, toothpaste, toothbrushes, dental floss, and feminine hygiene products.
Residential utilities get the same treatment. Electricity, natural gas, fuel oil, and bottled gas purchased for home use are exempt from the 6% tax.10Pennsylvania General Assembly. Pennsylvania Code 72 PS 7204 – Exclusions from Tax
Online Orders and Out-of-State Purchases
Pennsylvania requires marketplace facilitators and remote sellers to collect and remit the 6% tax once their annual gross sales into the state exceed $100,000 in a calendar year. There is no separate transaction-count threshold.12Pennsylvania Department of Revenue. Online Retailers For Allentown consumers, that means most major online purchases already include the correct 6% tax at checkout.
When a seller doesn’t charge Pennsylvania sales tax on a taxable item, the buyer owes use tax at the same 6% rate. Use tax is the companion to the sales tax and exists to prevent residents from avoiding tax by shopping across state lines or from sellers with no Pennsylvania presence. There is no minimum dollar amount or annual threshold below which use tax doesn’t apply. Every taxable purchase where sales tax wasn’t collected triggers the obligation, and if the Department of Revenue identifies unreported purchases, it will assess the tax along with penalties and interest.13Commonwealth of Pennsylvania. Use Tax In practice, this matters most for larger items like furniture, electronics, or vehicles bought out of state.