Free template, Pennsylvania tax rules built in
Free Pennsylvania Invoice Template
Pennsylvania charges 6% state sales tax on goods and exempts most services, and it requires home improvement contractors to register with the state Attorney General. This template covers both.
Sales tax on invoices in Pennsylvania
Rate: 6% state (7% in Allegheny County, 8% in Philadelphia)
Pennsylvania charges 6% state sales tax, with Allegheny County at 7% and Philadelphia at 8%. Pennsylvania taxes tangible goods and exempts most services, though there are specific taxable services to watch for. A service-only invoice usually carries no sales tax. When you sell goods, charge the rate for the county.
What gets taxed: Most services are exempt. Tangible goods are taxable.
Rates and rules change. Confirm the current rate and what is taxable with your state tax authority before you file.
Contractor licensing in Pennsylvania
Pennsylvania requires home improvement contractors who do more than $5,000 of work per year to register with the Office of Attorney General under HICPA and put their registration number on contracts and invoices. Show your HIC registration number on your invoices.
Sample Pennsylvania invoice
Example for a job in Philadelphia, PA, showing how the tax line works when some items are taxable and some are not.
| Description | Qty | Rate | Amount |
|---|---|---|---|
| Labor (exempt in PA) | 10 | $70.00 | $700.00 |
| Materials | 1 | $520.00 | $520.00 |
| Subtotal | $1,220.00 | ||
| Sales tax (8% on taxable items) | $41.60 | ||
| Total | $1,261.60 | ||
Tax is applied only to the taxable lines, which is the part most invoices get wrong. Build yours with the right tax handling in the free generator.
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Pennsylvania invoice FAQs
Do home improvement contractors need to register in Pennsylvania?
Yes. Contractors doing more than $5,000 of home improvement work per year must register with the Pennsylvania Office of Attorney General under HICPA and include their registration number on contracts and invoices.
Are services taxable in Pennsylvania?
Most are not. Pennsylvania taxes tangible goods and exempts most services, with some specific exceptions. A service-only invoice usually carries no sales tax. Sold goods are taxable.
What sales tax rate applies in Pennsylvania?
The state rate is 6%, with Allegheny County at 7% and Philadelphia at 8%. Use the rate for the county where the sale takes place.