Philly Sales Tax Raised to 8% As of October 8, 2009

Sales Tax in Philadelphia was increased from 7% to 8%, effective October 8, 2009. The increase applies to all purchases, including motor vehicles, and impacts anyone who lives in Philadelphia. NewJersey dealers, who may sell to Philadelphia residents, should know that anyone with a Philadelphia zip code will pay 8% Sales Tax on the purchase of motor vehicles. Sales Tax is based on where the consumer lives, not where they shop. That means there’s no way Philadelphia residents can escape the tax increase—even if they purchase a car in the Pennsylvania suburbs or NewJersey.