Do I owe Pennsylvania Use Tax?

Pennsylvania Use Tax may apply when you purchase taxable items or services for use, storage, or consumption in Pennsylvania and Pennsylvania sales tax was not collected at the time of purchase.

Pennsylvania > Use Tax

What Is Pennsylvania Use Tax?

Use Tax is a tax imposed on taxable purchases when Pennsylvania sales tax was not charged by the seller.

Common situations where Use Tax may apply include:

• Online purchases where Pennsylvania sales tax was not collected.
• Mail-order or catalog purchases.
• Purchases from out-of-state retailers.
• Taxable services purchased without Pennsylvania sales tax being charged.
• Purchases made outside Pennsylvania and brought into the state for use.

Who May Owe Use Tax?

You may owe Pennsylvania Use Tax if:

• You purchased taxable goods or services.
• The goods or services were used, stored, or consumed in Pennsylvania.
• Pennsylvania sales tax was not paid at the time of purchase.

If the full Pennsylvania sales tax was already paid, Use Tax is generally not due.

What Information Is Needed to Complete the Use Tax Section?

Purchases of Taxable Items Subject to Pennsylvania Use Tax

Enter the total purchase price of taxable items subject to Pennsylvania Use Tax, including any shipping and handling charges.

Examples may include:

• Online purchases.
• Mail-order purchases.
• Purchases from out-of-state retailers.

Purchases of Taxable Services Subject to Pennsylvania Use Tax

Enter the total amount paid for taxable services where Pennsylvania sales tax was not collected.

Utilities Expense Subject to Use Tax

Enter the amount of utility expenses from Schedules C, E, F, and/or UE that are subject to Pennsylvania Use Tax.

Location

Select the location where the property or service was used.

The location determines the applicable tax rate:

• Pennsylvania State Rate
• Allegheny County Rate
• Philadelphia Rate

Sales Tax Previously Paid

Enter any sales tax previously paid on purchases included in the taxable purchases or taxable services amounts.

This may reduce the amount of Pennsylvania Use Tax due.

How Does Use Tax Affect My Return?

Pennsylvania Use Tax may:

• Increase the amount owed on your Pennsylvania return.
• Reduce a Pennsylvania refund.
• Satisfy Pennsylvania's requirement to pay tax on taxable purchases when sales tax was not collected at the time of purchase.

Important Information

• Use Tax applies only to taxable purchases and services when Pennsylvania sales tax was not paid.
• Shipping and handling charges may be included in the taxable amount.
• Taxable purchases made outside Pennsylvania may still be subject to Pennsylvania Use Tax if they are used, stored, or consumed in Pennsylvania.
• Keep receipts and records supporting all amounts entered in the Use Tax section.
• Any sales tax previously paid should be entered to ensure the correct amount of Use Tax is calculated.

Additional Information

Review your online purchases, out-of-state purchases, taxable services, and business utility expenses before completing the Use Tax section to determine whether any additional Pennsylvania Use Tax is due.