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Pennsylvania Digital Products Sales Tax Guide — 2026

Updated

Reviewed by Nexus by State research team using official state tax sources. Last reviewed .

Guide content last reviewed: 2026-07-06

If your Digital Products business sells $100,000 into Pennsylvania in a calendar year, you have economic nexus and must register, collect, and remit Pennsylvania sales tax.

Are digital products taxable in Pennsylvania?

Yes. As of July 6, 2026, Pennsylvania charges its 6% sales and use tax on digital products delivered electronically — downloaded or streamed video (including Netflix and Hulu subscriptions), music, ringtones, audiobooks and satellite radio, e-books, apps and games (and their in-app add-ons), photographs, and e-greeting cards — under Act 84 of 2016, effective August 1, 2016. Canned (prewritten) software, SaaS/cloud software, and their updates, maintenance, and support are also taxable as tangible personal property. The 6% state rate applies statewide, plus 1% in Allegheny County and 2% in Philadelphia.

Taxable digital categories

  • Downloaded or streamed video, and subscriptions to streaming services such as Netflix and Hulu
  • Digital audio — songs, ringtones, and audiobooks from iTunes, Google Play, and similar services, plus subscriptions to satellite radio
  • E-books from Amazon Kindle, Barnes & Noble Nook, and other retailers, and subscriptions to download e-books
  • Apps and games that are downloaded, add-ons to an app or game, and subscriptions to online games
  • Digital photographs and electronic (e-)greeting cards
  • Canned (prewritten) computer software delivered electronically, and SaaS/cloud access to canned software — including separate charges for updates, upgrades, enhancements, maintenance, and support — taxable under 61 Pa. Code § 60.19

Not taxable / special treatment

  • Digital products purchased for resale
  • Digital products bought for exempt use by qualified charitable, volunteer-fire, religious, or nonprofit educational organizations
  • Textbooks purchased from or through accredited schools
  • Newspaper and magazine subscriptions
  • Custom computer software written to a particular customer’s specifications (as opposed to canned/prewritten software)

Pennsylvania settled the digital-goods question with Act 84 of 2016, which amended the definition of taxable tangible personal property to reach products “transferred electronically.” Effective August 1, 2016, the state’s 6% sales and use tax applies to digital video, audio, books, apps, games, photographs, and e-greeting cards whether they are downloaded, streamed, or accessed by subscription. That puts Pennsylvania with Kentucky, Tennessee, and North Carolina on the “taxes digital goods” side — the opposite of neighboring Virginia, which generally does not.

Software and SaaS are taxable too. Under 61 Pa. Code § 60.19, canned (prewritten) computer software is tangible personal property regardless of how it is delivered, and the Department of Revenue treats SaaS and cloud-based access to canned software the same way. Separately stated charges for updates, upgrades, maintenance, and support of taxable canned software are taxable as well. Only custom software written to a specific customer’s specifications falls outside the tax. Confirm your product against the Pennsylvania SaaS guide and the Department of Revenue.

Exemptions mirror tangible goods. The same exemptions that apply to physical products apply to digital ones: purchases for resale, purchases by qualified charitable, religious, volunteer-fire, and nonprofit educational organizations, textbooks bought from or through accredited schools, and newspaper and magazine subscriptions remain exempt in digital form.

Rate, sourcing, and marketplaces: the 6% state rate applies statewide, with an added 1% local tax in Allegheny County and 2% in Philadelphia, sourced to where the customer receives the product. Since July 1, 2019, remote sellers and marketplace facilitators that exceed $100,000 in Pennsylvania sales in the prior calendar year must register and collect; marketplace facilitators such as Amazon, eBay, and Etsy collect and remit Pennsylvania tax on the taxable digital sales they facilitate, and sellers cannot opt out.

Pennsylvania digital-tax rules last verified: 2026-07-06. Sources: Pennsylvania Department of Revenue — Digital Products; Pennsylvania Department of Revenue — Tax on Digital Products Q&A (Act 84 of 2016); Pennsylvania Department of Revenue — Taxability of Canned Computer Software, Digital Goods, and Related Services; 61 Pa. Code § 60.19 — Computer software, hardware and related transactions. date_retrieved: 2026-07-06. State rules change — confirm category-by-category with the Pennsylvania state tax agency before invoicing.

Sales tax on digital products in Pennsylvania

“Digital products” covers eBooks, audiobooks, video downloads, online courses, streaming subscriptions, digital artwork, stock photos, music, and similar non-physical delivered goods. Whether Pennsylvania taxes them depends on how the state classifies the product — “specified digital products”, “electronic transfer of canned software”, or a service. Rules vary more than for physical goods.

If taxable in Pennsylvania, the product is subject to the 6.00% state rate plus any applicable local rate based on the buyer’s address.

Which digital products does Pennsylvania tax?

Most states sort digital goods using the Streamlined Sales Tax definition of “specified digital products”, which splits them into three subcategories a state can tax or exempt independently:

  • Digital audio-visual works — downloaded or streamed movies, shows, and recorded events. Streaming video subscriptions fall here.
  • Digital audio works — downloaded or streamed music, podcasts, audiobooks, and ringtones. Streaming music subscriptions fall here.
  • Digital books — eBooks. Newspapers, periodicals, blogs, and databases are excluded from the “book” definition and follow their own rules.

Because a state may tax one subcategory and exempt another, “are digital products taxable” rarely has a single yes/no answer. Where Pennsylvania taxes a subcategory, the charge is subject to the 6.00% state rate plus any local rate at the buyer’s address. Software subscriptions (SaaS and electronically delivered “canned” software) sit outside this framework and follow Pennsylvania’s separate software-taxability rule — see the SaaS guide for that determination.

Framework source: Streamlined Sales Tax Governing Board — “Specified Digital Products” definition (SSUTA §332). date_retrieved: 2026-06-04. State-by-state taxability still varies; verify each subcategory with the Pennsylvania Department of Revenue before invoicing.

Key distinctions

  • Specified digital products. Many states (adopting Streamlined Sales Tax definitions) tax SDPs — digital audio/video/books.
  • Online courses and education. Most states treat live-instruction courses as non-taxable services but treat pre-recorded course access as taxable digital products. Watch for this split if you sell both.
  • Subscriptions. Bundled subscription boxes with mixed digital + physical content are often taxed as a single taxable bundle — you can't allocate across taxable and non-taxable components unless the invoice separately states them.
  • B2B vs B2C. Some states exempt B2B digital products when bought for resale or when the buyer has a direct-pay permit. Keep certificates on file.

Common digital-product mistakes in Pennsylvania

  • Treating all digital products the same across states — eBook tax treatment differs from SaaS, which differs from streaming.
  • Bundling digital + physical goods without a line-item breakdown. Most states tax the full bundle at the physical rate if not itemized.
  • Applying origin-based sourcing (your state's rate) when most states source digital products to the buyer's billing or shipping address.

Pennsylvania nexus note

Pennsylvania sales tax nexus and economic nexus threshold: more than $100,000 in annual Pennsylvania gross sales, measured by calendar year, creates economic presence for remote sellers and marketplace facilitators (eff. 2019-07-01 under Act 13 of 2019 and Sales and Use Tax Bulletin 2019-01). Pennsylvania uses a sales-only threshold -- no transaction-count test. Gross sales include taxable and nontaxable sales across channels. A marketplace facilitator with no Pennsylvania physical presence counts both facilitated and direct Pennsylvania sales; a marketplace seller counts direct sales plus marketplace sales only when the facilitator does not collect Pennsylvania sales tax on its behalf. After the first collection year, Pennsylvania measures prior calendar-year sales and starts the annual collection period in the second quarter. The state rate is 6%, with local add-ons in Allegheny County (+1%) and Philadelphia (+2%). Pennsylvania 2026 sales/use tax filing calendars list monthly, quarterly, semi-annual, and monthly-with-prepayment filer tracks; returns are due even when no taxable transactions occur in the period. Sellers without physical presence can use a Pennsylvania-certified service provider for registration, filing, collection, and remittance support. Pennsylvania DOR source data last retrieved 2026-05-30.

What to do next

Read the full Pennsylvania overview for thresholds, filing frequency, marketplace facilitator rules, and registration links. Use the nexus calculator to check whether you have crossed the threshold. For background on the post-Wayfair economic nexus framework, see the pillar guide.

Digital Products sales tax in other states

Compare Pennsylvania's digital products rules with nearby and similar states' digital products sales tax guides:

Frequently asked questions

Are digital products taxable in Pennsylvania in 2026?
Yes. Pennsylvania taxes digital products delivered electronically — downloaded or streamed video (including Netflix and Hulu subscriptions), music, ringtones, audiobooks and satellite radio, e-books, apps and games (and their add-ons), photographs, and e-greeting cards — at the 6% state rate under Act 84 of 2016, effective August 1, 2016. Canned software and SaaS are taxable too. The 6% state rate applies statewide, plus 1% in Allegheny County and 2% in Philadelphia.
Does Pennsylvania tax digital downloads (eBooks, music, video)?
Yes. E-books (Kindle, Nook), downloaded or streamed music, ringtones, and audiobooks, and downloaded or streamed video are taxable digital products in Pennsylvania at the 6% state rate. The tax applies whether you buy the file outright or pay for a subscription, and Pennsylvania has taxed these products since Act 84 of 2016 took effect on August 1, 2016.
Does Pennsylvania charge sales tax on streaming services in 2026?
Yes. Pennsylvania taxes subscriptions to streaming services such as Netflix and Hulu, streamed music, and satellite radio subscriptions as taxable digital products at the 6% state rate (plus 1% in Allegheny County or 2% in Philadelphia). Both downloaded and streamed video and audio are covered.
Is SaaS taxable in Pennsylvania?
Yes. Pennsylvania treats canned (prewritten) computer software as tangible personal property under 61 Pa. Code § 60.19 regardless of how it is delivered, and the Department of Revenue taxes SaaS and cloud-based access to canned software the same way, along with separate charges for updates, maintenance, and support. Only custom software written to your specifications is exempt — check the Pennsylvania SaaS guide and confirm with the Department of Revenue before invoicing.
What Pennsylvania sales tax rate applies to digital products?
Pennsylvania's state sales and use tax rate is 6.00%. An added local tax of 1% applies in Allegheny County and 2% in Philadelphia, sourced to where the customer receives the product, so taxable digital products cost 6% in most of the state, 7% in Allegheny County, and 8% in Philadelphia.
Who collects Pennsylvania sales tax on digital products sold through a marketplace?
A marketplace facilitator such as Amazon, eBay, or Etsy collects and remits Pennsylvania sales tax on the taxable digital sales it facilitates, and sellers cannot opt out. Since July 1, 2019, remote sellers and marketplace facilitators with more than $100,000 in Pennsylvania sales in the prior calendar year must register and collect. Direct sales from your own store remain your responsibility once you have nexus.

Sources

date_retrieved: 2026-05-30