Pennsylvania Sales Tax for Contractors (2026): No Tax on the Remodel
Why a Pennsylvania contractor pays sales tax on materials and charges none on a home remodel, and three jobs worked at 6%.
Not tax advice. General information from each state's revenue department, checked Oct 29, 2026. Rates shown are the state rate; city and county tax is extra where it applies. The facts of your job and contract can change the answer; for a specific job, ask a tax professional in your state.
The rule in Pennsylvania
Materials only
You pay tax on materials and add no sales tax to the bill.
6%
6% plus 1% Allegheny, 2% Philadelphia
Itemizing or time and materials
No change for real property work.
None for homeowners
Source: 61 Pa. Code 31.12 (Pennsylvania regulation)
“"X" Contractor does not charge sales tax on this transaction to his customer.”
Three jobs, worked
| Job | Customer | You pay |
|---|---|---|
| Bathroom $12,000 job, $5,000 materials | $0 | $300 |
| Kitchen $40,000 job, $15,000 materials | $0 | $900 |
| Addition $90,000 job, $35,000 materials | $0 | $2,100 |
On the kitchen: The customer pays no sales tax. You pay $900 on $15,000 of materials at 6%, and build it into the price.
How it works in Pennsylvania
Materials
You're the consumer: pay 6%, or 7% or 8% with local tax, when you buy.
The bill
No sales tax line. Build the tax you paid into the price.
Not real property
Selling and installing items that stay personal property, like a free-standing appliance, is a taxable sale, labor included.
Also check
- Building maintenance and cleaning services are taxable; remodeling isn't.
- Pennsylvania doesn't use a customer certificate for home remodels.
Pennsylvania sales tax questions
Do contractors charge sales tax in Pennsylvania?
Not on a home remodel. The contractor pays tax on materials.
Is labor taxable in Pennsylvania?
Not for construction that becomes part of the home.
Can a contractor list sales tax on the bill in Pennsylvania?
No. They can build the tax they paid into the price, but not as a separate item.
Compare other states
How we checked
We read each state's sales tax rule for construction contractors on the revenue department or legislature site, and its 2026 state rate. Two independent research passes covered all 50 states and DC, and a third reviewer checked the result. Where a state's own page would not load, the row names the copy we read. Last checked .
This guide explains the general rule for remodeling an owner-occupied home. It is not tax advice.