Pennsylvania sales tax on invoices (2026 guide)

Pennsylvania's sales tax is 6% statewide. Two places add a local sales tax by law: Allegheny County adds 1% (7% in total) and Philadelphia adds 2% (8% in total). Everywhere else, the rate is 6%.

That makes Pennsylvania one of the simpler states for rates — but it does tax some services that other states don't. Here's what to know before you send a Pennsylvania invoice.

Pennsylvania sales tax rates

Where	Rate
Most of Pennsylvania	6%
Allegheny County (including Pittsburgh)	7% (6% + 1% local)
Philadelphia	8% (6% + 2% local)

Recent legislation requires vendors selling taxable products or services to customers in Philadelphia and Allegheny counties to collect and remit those local sales taxes. If you have customers in either county, make sure your invoices use the right combined rate for them.

Is what you sell taxable in Pennsylvania?

Pennsylvania's sales tax applies to:

• Tangible personal property — most physical goods, unless specifically exempt (many clothing and food items, for example, are exempt).
• Certain services relating to taxable property, such as repairing or maintaining it.
• Specific business services named in the law. Building cleaning is one example: according to Pennsylvania's business guidance, both residential and commercial building cleaning services are subject to sales tax.

Many professional services — such as consulting, legal and accounting work — are not on the list. Because the list of taxable business services is specific, check the Department of Revenue's Retailer's Information Guide (REV-717) and its taxability lists for your exact service rather than guessing.

Getting a Pennsylvania sales tax license

Before you sell taxable items or perform taxable services, you need a Sales, Use and Hotel Occupancy Tax License from the Pennsylvania Department of Revenue. With the license, you:

1. collect the 6% state tax (plus local tax for Allegheny County or Philadelphia),
2. file returns on the schedule the Department assigns, and
3. remit the tax you've collected.

What a Pennsylvania invoice should show

• your business name, address and sales tax license details,
• the customer's name and billing address,
• a unique invoice number and the invoice date,
• a description, quantity and price for each item or service,
• sales tax as a separate line with the rate (6%, 7% or 8%), and
• the total due.

If an invoice mixes taxable and non-taxable items, list them separately so you only charge tax on the taxable lines. In Invoice Native, tick Tax on the taxable lines and enter 6%, 7% or 8%.

Customers who don't pay sales tax

Customers who buy for resale, and exempt organizations, give you a Pennsylvania Exemption Certificate (REV-1220). The Department explains that once issued to a supplier, the certificate may be used for all future tax-exempt purchases from that supplier — so you don't need a new one each time. Keep it on file and note the exemption on your invoices.

See how to invoice a tax-exempt customer for what to write on the invoice.

A worked example

Suppose you run a small cleaning company and clean offices in Philadelphia. For a $600 monthly contract, the combined Philadelphia rate is 8% (6% state + 2% local), so the tax is $600 × 8% = $48.00 and the invoice total is $648.00.

If the same business also did a $1,000 consulting project for that client, the consulting fee wouldn't be taxed — list it on a separate line with Tax unticked, and the tax stays at $48.00.

Selling to customers in other states

If you ship goods or deliver taxable services to customers in another state, that state's rules may apply instead of Pennsylvania's. Since the Supreme Court's 2018 decision in South Dakota v. Wayfair, states can require out-of-state sellers to register and collect their sales tax once sales into the state pass a threshold the state sets. If you sell across state lines regularly, check the thresholds and registration rules of each state you sell into — and use that state's rate on those invoices.

Common mistakes on Pennsylvania invoices

• Charging 6% to customers in Philadelphia or Allegheny County, where the combined rates are 8% and 7%.
• Assuming all services are exempt — some business services, such as building cleaning, are taxable.
• Assuming all services are taxable — most professional services are not.
• Asking for a new REV-1220 on every order, when one certificate can cover future exempt purchases.
• Not showing sales tax as its own line.

Quick checklist for Pennsylvania invoices

• ✅ Sales, Use and Hotel Occupancy Tax License in place
• ✅ Right rate: 6%, 7% in Allegheny County, 8% in Philadelphia
• ✅ Checked whether your service is on the taxable list
• ✅ Sales tax shown as a separate line
• ✅ REV-1220 certificates on file for exempt customers