Pennsylvania Contractor Sales Tax 2026

Pennsylvania sales tax for contractors 2026. Labor taxable? Materials? Real rules from state revenue department.

Pennsylvania sales tax rate for contractors

  • Combined rate: 6% + 1-2% local (Philly 8%, Allegheny 7%)
  • Construction labor taxable: NO - real property labor is exempt
  • Tax authority: Pennsylvania Department of Revenue

How Pennsylvania treats contractor labor

Real property labor exempt. Repair labor on TPP taxable. Philadelphia and Allegheny County have local additions.

Pennsylvania-specific rules

No statewide GC license for new construction. HIC registration required for home improvement work. Repair labor on tangible personal property taxable.

Pennsylvania mechanics lien rights

Beyond sales tax, Pennsylvania contractor billing must respect the mechanics lien deadline of 6 months from last work. Preliminary notice: Notice of Furnishing required within 45 days for projects over $1.5M.

Pennsylvania contractor licensing

Pennsylvania Attorney General (Home Improvement Contractor Registration); no statewide license for new construction - required for licensed work. $50 HIC registration. Board: https://www.attorneygeneral.gov.

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Pennsylvania contractor resources by trade