Most businesses starting in Pennsylvania selling a product or offering certain services will need to register for a Pennsylvania sales tax license. This is commonly referred to as a seller’s permit, sales tax permit, sales tax number, or sales tax registration.

The sales tax license is obtained through the Pennsylvania Department of Revenue as a part of the Pennsylvania Enterprise Registration. In addition to registering for sales taxes, this registration is used to register a new business and withholding taxes.

Check out the rest of this guide to determine who needs a sales tax license, what products and services are taxable, how to register for a permit, and reporting requirements.

Related: Guide to starting a business in Pennsylvania

Who needs a sales tax license in Pennsylvania?

A business must register for a sales tax license in Pennsylvania when:

• A business has an economic nexus. Economic nexus means having a physical presence in the state, such as having a physical location like a retail store or office or using a warehouse or fulfillment center to store inventory.
• Selling products and taxable services in Pennsylvania (includes occasionally selling items at craft shows, fairs, seminars, shows, etc.)
• Hiring employees who work in Pennsylvania (including remote employees, sales representatives, or agents).
• An online business located in Pennsylvania is selling taxable products to Pennsylvania residents
• A remote seller or an out-of-state dealer selling over $100,000 in taxable goods and services to Pennsylvania residents.

What products and services are taxable in Pennsylvania?

Physical products

There are a few exceptions, but almost all physical products are taxable when sold at retail in Pennsylvania. Common examples include:

• General merchandise like furniture, appliances, and clothing
• Titled or registered items like vehicles

Drugs, medical supplies, grocery store food, and school textbooks are tax-exempt.

In Pennsylvania, labor is typically not taxable. For example, consider a computer repair service where you bring in your laptop for repairs. You would pay sales tax on any new parts like a hard drive or memory, but not on the service fee for installing these parts or repairing the laptop.

However, if we look at a Pennsylvania company that creates custom-made curtains or blinds, the situation changes. Here, the business would measure your windows, design the window treatments, and install them. While the direct labor for sewing or installing the curtains isn’t taxed, the total cost that the customer pays, which includes both the materials (fabric, rods, etc.) and the installation labor, is subject to sales tax. This is because the labor is considered part of the final product that the customer buys.

Digital Products

Most digital products are taxable in Pennsylvania.

Services

Most services aren’t taxable in Pennsylvania, however, there are a few exceptions, some of which include:

• Short-term lodging
• Secretarial or editing services such as letter writing, resume writing, or document editing
• Pest control services
• Building maintenance or cleaning services
• Self-storage services
• Lawn care services

See the full list of taxable items in Pennsylvania.

How to register for a sales tax license in Pennsylvania

A sales tax license and account number can be obtained by completing the Pennsylvania Enterprise Registration online through the Pennsylvania Department of Revenue’s myPATH website. This registration can also be used to register a business for employer withholdings through the Pennsylvania Department of Labor & Industry.

Information needed to register includes:

• Date operations began
• Fiscal year end of the business
• Federal Employer Identification Number (FEIN) from the IRS
• Business Legal Name
• Business Trade Name
• Business physical address and mailing address
• Doing Business As – if applicable
• Type of business entity: sole proprietorship, partnership, corporation, Limited Liability Company (LLC)
• Names, SSN, date of birth, title, and addresses of owners/officers/members
• Establishment’s business activities

Sales tax reporting

How is sales tax collected?

When a business sells a taxable product or service, the business charges the appropriate sales tax rate to the customer. This tax is collected by the business, which is then sent to the Pennsylvania Department of Revenue using the E-tides filing.

How much is sales tax in Pennsylvania?

If the purchase is made at a store or in a mobile location, the sales tax rate varies depending on where the sale took place in Pennsylvania. When shipping in-state, the sales tax is based on the purchaser’s address.

In addition to the statewide 6% sales tax, Allegheny and Philadelphia Counties levy additional taxes. More details on Pennsylvania sales tax rates are available from the PA Department of Revenue.

When are Pennsylvania sales tax returns due?

The Department of Revenue will determine a filing frequency based on the expected sales volume, which will be monthly, quarterly, or annually. Generally, a business collecting between $200 and $8,333 each month will file monthly.

Filings are due on the 20^th day of the month following the reporting period unless the 20th falls on a weekend or federal holiday, which would move to the next business day.

Even if the business had no sales during the reporting period, a filing indicating no sales is still required.

Pennsylvania Sales Tax License FAQs

If you have questions about sales and use tax, the Pennsylvania Department of Revenue has the Retailer’s Information Guide, or call  717-787-3653.