Pennsylvania sales tax debt: penalties, payment plans and appeals
Last updated · Reviewed for accuracy against IRS.gov guidance
Pennsylvania sales tax is administered by the Department of Revenue at 6%, plus 1% in Allegheny County and 2% in Philadelphia. Unpaid tax draws penalties and interest, can lead to liens and loss of the sales tax license, and officers can be held personally liable. The Department offers payment options, and disputes go to the Board of Appeals and then the Board of Finance and Revenue.
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Rates and licensing
The Pennsylvania Department of Revenue administers sales, use and hotel occupancy tax. The state rate is 6%; Allegheny County adds 1% (7% total) and Philadelphia adds 2% (8% total). Businesses must hold a sales tax license, renewed periodically — and the Department can refuse renewal or revoke a license when returns or payments are delinquent, which ends the right to sell.
How a balance builds
Late returns and payments carry penalties and interest, and the Department can estimate and assess tax for unfiled periods. Because the exact penalty depends on how late each return is, rely on your Department notice. Interest is set annually. Filing missing returns is usually the quickest way to replace an estimated assessment with an accurate one.
Liens and personal liability
Pennsylvania can file a lien that attaches to business and, where applicable, personal property, and it can pursue officers personally. State law makes corporate officers who are responsible for collecting and remitting sales tax personally liable for unpaid trust-fund amounts — the state analogue of the federal Trust Fund Recovery Penalty.
Paying over time
The Department's payment options page explains how to pay online through myPATH and how to request a deferred payment plan when you can't pay in full. Expect to need current filings, and understand that interest and penalties continue while a plan runs. Larger or older balances may be handled by the Department's collection staff or its contracted collection agencies.
Appeals
A Pennsylvania assessment is first appealed to the Department's Board of Appeals, then to the independent Board of Finance and Revenue, and then to Commonwealth Court. Petition deadlines are printed on the notice and are strictly enforced. Before you file, see which options may fit with the free business tax relief assessment.
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Start the calculatorFrequently asked questions
What is Pennsylvania's sales tax rate?
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6% statewide, 7% in Allegheny County and 8% in Philadelphia.
Can Pennsylvania revoke my sales tax license?
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Yes. The Department can refuse to renew or revoke a sales tax license for delinquent returns or payments.
Where do I appeal a Pennsylvania sales tax assessment?
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First the Department's Board of Appeals, then the Board of Finance and Revenue, then Commonwealth Court.
Can I go to jail for not paying Pennsylvania sales tax?
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Criminal charges are possible in most states for knowingly keeping collected tax, but the overwhelming majority of cases are handled civilly through billings, penalties, liens and levies. If you've received a criminal investigation notice, talk to a tax attorney before anything else.
Does closing the business end the sales tax debt?
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No. Closing stops new liability from accruing, but assessed tax, penalties and interest remain, and states commonly pursue owners or officers personally for collected-but-unremitted tax.
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Sources
IRS figures on this page (rates, fees, thresholds) verified as of 2026-11-04. See our editorial policy.
TaxSettlementCalculator.com is not a tax firm, law firm, CPA, or government agency and is not affiliated with the IRS or any state tax agency. Estimates are for educational purposes only and are not tax, legal, or financial advice. Results vary based on individual circumstances, and no outcome is guaranteed. We connect users with independent tax relief professionals.