Credit card processing and merchant services in Pennsylvania
Since October 1, 2026, Pennsylvania enforces Philadelphia and Allegheny County sales tax by delivery address. We help merchants update checkout settings and lower what they pay for cards.
Card surcharges
Surcharging allowedNo Pennsylvania law limits surcharges; Visa's 3% and Mastercard's 4% caps and the disclosure rules apply.
Sales tax
6% state, plus 1% to 2% local
Last checked
October 6, 2026
The biggest payments change in Pennsylvania this year is a sales tax change. Act 21 of 2026 put the local sales taxes in Philadelphia (2%) and Allegheny County (1%) on a destination basis. Before, local tax generally followed where the seller was located. Now it follows where the product or service is delivered, and any vendor already collecting the state's 6% has to collect the local tax on taxable sales to customers in those two counties. The law was enacted July 12, 2026 and reaches back to tax years after December 31, 2025, but the Department of Revenue only began enforcing it on October 1, 2026.
An example: a retailer in Harrisburg shipping a taxable order to a customer in Pittsburgh now charges 7%, and the same order sent to a Philadelphia address takes 8%. Online stores, delivery services and anyone who bills customers in those counties should confirm that checkout calculates tax from the ship-to address. Deliveries anywhere else in the state carry the 6% state rate.
Pennsylvania has no surcharge statute, so the card network rules set the limits on any credit card surcharge. We found no statewide law that requires businesses to take cash, but Philadelphia has its own cash ordinance, covered on our Philadelphia page.
The SBA Office of Advocacy's 2025 profile counts 1.2 million small businesses in Pennsylvania, employing 45.2% of the state's workers. Whatever your size, we'd start with your statement. Clearo prices on interchange-plus, with a dedicated rep and no long-term contract, and the free statement review costs nothing. Pittsburgh and Allentown merchants can find city notes on our Pittsburgh and Allentown pages.
What Pennsylvania merchants should know
Credit card surcharges in Pennsylvania
Pennsylvania has no statute that bans or caps credit card surcharges, and NCSL's table of state surcharge laws lists none for the state. The card network rules apply:
- Visa: Pennsylvania merchants may charge up to their merchant discount rate or 3%, whichever is lower, and must send their acquirer written notice 30 days in advance.
- Mastercard: in Pennsylvania, the limit is your average effective merchant discount rate or 4%.
- No surcharges on debit or prepaid cards.
- A Pennsylvania business has to disclose the surcharge at the point of entry and the point of sale and show it on every receipt.
Sources: NCSL, Credit or debit card surcharges statutes (table last updated 2016); Visa, U.S. Merchant Surcharge Q and A (PDF); Mastercard, Merchant surcharge rules (US)
Sales tax and Act 21 of 2026
Pennsylvania's sales tax rate is 6%. A 1% local tax applies to purchases in Allegheny County and a 2% local tax to purchases in Philadelphia.
Under Act 21 of 2026, local sales tax is based on where the product or service is delivered, not where the vendor is located. Vendors already required to collect the 6% state tax must collect Philadelphia's 2% and Allegheny County's 1% on taxable sales to customers in those counties. The law was enacted July 12, 2026 with a retroactive effective date for tax years after December 31, 2025, and the Department of Revenue began enforcing it October 1, 2026.
Sources: Pennsylvania Department of Revenue, Sales, use and hotel occupancy tax; Pennsylvania Department of Revenue, Local sales tax; City of Philadelphia, Philly's sales tax rules are changing: here's what you need to know (September 8, 2026)
Cash acceptance in Philadelphia
We found no statewide law requiring businesses to accept cash. Philadelphia's ordinance (Philadelphia Code Chapter 9-1132) bars people selling consumer goods or services at retail from refusing cash, with exceptions such as phone, mail and online transactions. See the Philadelphia page for details.
Source: City of Philadelphia, Regulations on cash payments in retail establishments
Cities we cover in Pennsylvania
Payment services we provide
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Common questions
What changed with Pennsylvania local sales tax in 2026?
Act 21 of 2026 made the Philadelphia 2% and Allegheny County 1% local sales taxes destination-based. Vendors that collect the 6% state tax must now collect the local tax on taxable sales delivered to customers in those counties. The Department of Revenue started enforcing the change on October 1, 2026.
I'm outside Philadelphia and Allegheny County. Do I still collect their local tax?
Yes, on taxable sales delivered to customers there, if you already collect Pennsylvania's 6% sales tax. Charge 8% on deliveries into Philadelphia and 7% on deliveries into Allegheny County, and make sure your online checkout calculates tax from the delivery address.
Can I add a credit card surcharge in Pennsylvania?
Yes. Pennsylvania has no surcharge statute, so Visa and Mastercard rules apply: credit cards only, no more than your cost and no more than 3% for Visa or 4% for Mastercard, 30 days' written notice to your acquirer for Visa, and disclosure at the entrance, at checkout and on the receipt. A Philadelphia location also has to follow the city's cash rules.
Do Pennsylvania businesses have to accept cash?
We found no statewide law that requires it. Philadelphia is different: its ordinance bars most retailers from refusing cash, so a Philadelphia location has to take cash even if your stores elsewhere in the state don't.
What is the sales tax rate in Pennsylvania?
6% statewide. Philadelphia adds 2% and Allegheny County adds 1%, for 8% and 7%. Since Act 21 of 2026, those local taxes follow where the product or service is delivered.
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Disclaimer: general information, not professional advice
This page is general educational information, not legal, tax, accounting or financial advice. Rules and rates vary by place and change, so confirm them with the official source and a qualified professional before you act. Full terms are in our Terms of Service.
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