Pennsylvania Sales And Use Tax Credit Chart

Pennsylvania Sales And Use Tax Credit Chart - 2012 Page 2

GUIDELINES

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Pennsylvania law allows a credit for sales and use tax legally owed and paid to another state,

provided the other state grants a substantially similar credit for sales tax paid to Pennsylvania.

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Pennsylvania will recognize a credit for local sales and use tax paid to another state, only if

the tax is collected by that state and paid under a provision of state law. This chart does not

include local sales tax rates.

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The amount of the credit is equal to the tax paid to another reciprocal state, except that the

credit may not exceed 6 percent statewide, 8 percent in Philadelphia and 7 percent in

Allegheny county.

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Taxpayers who claim credits must present evidence showing the amount of sales tax paid to

other states with legal claim to the tax.

NOTES

1) Arizona - Rate increased from 5.6 percent to 6.6 percent effective July 1, 2010, and is

scheduled to expire on May 31, 2013. Rate will revert back to 5.6 percent effective

June 1, 2013.

2) California - California imposes an additional statewide 1 percent local sales tax.

3) Delaware - Pennsylvania does not grant credit for payment of Delaware’s

2.75 percent vehicle registration fee.

4) Iowa - Retail sales of motor vehicles are exempt from sales tax and subject to a 5 per-

cent one-time registration fee.

5) Maryland - Maryland imposes an excise tax on motor vehicles. Maryland does not grant

credit for sales tax paid to Pennsylvania on motor vehicles.

6) Mississippi - Sales tax rate on motor vehicles is 5 percent.

7) North Carolina - Retail sales of motor vehicles are exempt from sales tax and subject

to the 3 percent highway use tax.

8) Oklahoma - Oklahoma does not grant credit for sales tax paid to Pennsylvania on motor

vehicles.

9) Virginia - Virginia imposes an additional statewide 1 percent local sales tax.

10) West Virginia - West Virginia does not grant credit for sales tax paid to Pennsylvania

on motor vehicles.

Pennsylvania Sales And Use Tax Credit Chart - 2012 Page 2