On this page
Pennsylvania car sales tax at a glance
| Pennsylvania | |
|---|---|
| Tax | sales tax |
| State rate | 6% |
| Counties and cities add tax | Yes |
| Trade-in lowers the tax | Yes, tax is on the price minus the trade |
| Leases | Tax on each monthly payment |
Checked on the state's official sources on 2026-11-02. Rates change; the state's revenue department has the last word.
How to work out Pennsylvania sales tax on a car
Multiply the taxable price by the rate. In Pennsylvania the trade-in comes off first.
A $30,000 car with a $5,000 trade: $25,000 x 6% = $1,500 at the state rate, plus any county or city tax where you register the car.
6% state; 7% for Allegheny County residents and 8% for City of Philadelphia residents (1% or 2% local). No other local add-ons.
Trade-ins
Tax is computed on the full purchase price less the trade-in deduction, if the trade-in occurs at the time of the sale; a separate sale of the old vehicle does not count (61 Pa. Code 31.44(a)).
Leasing a car in Pennsylvania
Tax on each monthly payment. Pennsylvania: leases of 30 days or more pay sales tax plus an additional 3% motor vehicle lease tax on the lease price, including down payment, applied to lease payments as they come due (61 Pa. Code 47.19(c)), so about 9% on each payment (10% Allegheny, 11% Philadelphia). The lease calculator uses Pennsylvania's method when you pick the state.