Does Pennsylvania charge sales tax on services?
by December 27, 2023
Please note: This blog was originally published in 2021. It’s since been updated for accuracy and comprehensiveness.
Almost every US state requires sellers to charge sales tax on tangible personal property, also known as physical goods. Many states also implement sales and use tax on digital goods and SaaS offerings. Because the economy has shifted over time from a manufacturing economy to a service economy, states are now looking to generate revenue by enacting tax laws that make services taxable as well.
Here’s what merchants need to know about taxing services in Pennsylvania.
Are services subject to Pennsylvania sales tax?
Many services are subject to Pennsylvania’s 6% sales tax rate:
- Lobbying services
- Adjustment, collection, or credit reporting services
- Secretarial or editing services
- Employment agency services
- Help supply services
- Disinfecting or pest control services
- Building maintenance or cleaning services
- Lawn care services
- Self-storage services
- Premium cable services
- Catering services
Please keep in mind that this is a guideline, and you should consult with a sales tax professional to determine if the services your business provides should be taxed. For an in-depth look at sales tax in Pennsylvania, TaxJar’s guide to sales tax in Pennsylvania and the Pennsylvania Department of Revenue has more details.
How to stay compliant with sales tax when you sell services
Managing all the moving parts of sales tax can be challenging. Are accounting services taxed? What about hair care or car maintenance? They may not be taxed in your state today, but sales tax laws change all the time. TaxJar makes it easier for you to stay current with it all, especially as you scale your business across states.
If you need to charge sales tax on services, TaxJar takes all of these state laws into account and makes your job simple. To learn more about TaxJar and get started automating your sales tax compliance, start a free, 30-day trial today.
