Sales tax on labor in Pennsylvania: taxed on repairs to things, not on building repairs and new construction; installation depends on the job

Repairing a thing in Pennsylvania

Taxed. Repairing, altering or cleaning a thing is a taxable service, on the whole charge. Clothing and shoe repair is exempt.

• “The following services rendered upon tangible personal property are 'taxable services' whether or not tangible personal property is transferred in conjunction with the rendition of the services: (1) Repairing, altering, mending, pressing, fitting, dyeing, laundering, drycleaning or cleaning tangible personal property other than clothing or footwear.” — 61 Pa. Code § 31.5 Persons rendering taxable services, no date on the page
• “In general, services are not subject to tax; however, the law has enumerated certain services that are taxable. These include building maintenance or building cleaning services, lawn care services, disinfecting or pest control services” — Sales and Use Tax Audit Manual (PA Department of Revenue), page date: REV (5/30/2024)

Repairing a home or building in Pennsylvania

Not taxed. Construction and repair services to a building are not taxable; the contractor pays sales tax on the materials and supplies. But building maintenance and building cleaning services are taxable.

• “Persons rendering nontaxable services are consumers of the taxable personal property and services used in their business ... (5) Construction or repair services to realty.” — 61 Pa. Code § 31.6 Persons rendering nontaxable services (official PA Code), no date on the page
• “Construction activities also include the service of repairing real estate even though tangible personal property is not transferred by a contractor in conjunction with the repairs which he makes.” — 61 Pa. Code § 31.11 Definitions (construction contractors), no date on the page
• “The performance of building repair services on buildings or other property which is permanently affixed to realty are not taxable.” — 61 Pa. Code § 60.1 Building maintenance or building cleaning services; § 60.3 Disinfecting or pest control, no date on the page
• “In general, services are not subject to tax; however, the law has enumerated certain services that are taxable. These include building maintenance or building cleaning services, lawn care services, disinfecting or pest control services” — Sales and Use Tax Audit Manual (PA Department of Revenue), page date: REV (5/30/2024)

Installation work in Pennsylvania

It depends. What it turns on: whether the item becomes a permanent part of the real estate (construction activity) or the job is a retail sale and installation of tangible personal property / a repair part.

• “Construction activities also include the service of repairing real estate even though tangible personal property is not transferred by a contractor in conjunction with the repairs which he makes.” — 61 Pa. Code § 31.11 Definitions (construction contractors), no date on the page
• “A contractor shall pay tax upon the purchase price, as defined by the TRC, of all property, including materials, equipment, components and supplies, which he furnishes and installs in the performance of his construction activities.” — 61 Pa. Code § 31.12 Imposition of tax (construction contractors), no date on the page

New construction in Pennsylvania

Not taxed. Construction activities are not taxable to the customer; the contractor pays tax on all materials, equipment, components and supplies it furnishes and installs.

• “Construction activities also include the service of repairing real estate even though tangible personal property is not transferred by a contractor in conjunction with the repairs which he makes.” — 61 Pa. Code § 31.11 Definitions (construction contractors), no date on the page
• “A contractor shall pay tax upon the purchase price, as defined by the TRC, of all property, including materials, equipment, components and supplies, which he furnishes and installs in the performance of his construction activities.” — 61 Pa. Code § 31.12 Imposition of tax (construction contractors), no date on the page

Listing labor separately on the bill in Pennsylvania

Does not change the answer. Listing labor separately does not remove the tax on a retail sale with installation. On building maintenance/cleaning, if you do not separate the taxable part from non-taxable work, the whole invoice is taxed.

• “A contractor shall pay tax upon the purchase price, as defined by the TRC, of all property, including materials, equipment, components and supplies, which he furnishes and installs in the performance of his construction activities.” — 61 Pa. Code § 31.12 Imposition of tax (construction contractors), no date on the page
• “Effective March 4, 1971, charges for labor or transportation in conjunction with the sale at retail and installation of tangible personal property are subject to tax even though the labor or delivery charges are separately stated on the billing.” — 61 Pa. Code § 31.6 Persons rendering nontaxable services (official PA Code), no date on the page

Materials on jobs in Pennsylvania

Contractor doing construction activities (including repairs to real estate) is the consumer and pays sales tax on materials, equipment and supplies it furnishes and installs.

• “A contractor shall pay tax upon the purchase price, as defined by the TRC, of all property, including materials, equipment, components and supplies, which he furnishes and installs in the performance of his construction activities.” — 61 Pa. Code § 31.12 Imposition of tax (construction contractors), no date on the page

Trade services Pennsylvania taxes

The services Pennsylvania's own pages name as taxed, each in the page's words:

• Building maintenance: “Effective October 1, 1991, the sale at retail or the use of building maintenance services or building cleaning services is subject to tax when the services are performed in this Commonwealth.”
• Disinfecting or pest control: “Effective October 1, 1991, the sale at retail or use of disinfecting or pest control services is subject to tax”
• Lawn care: “the law has enumerated certain services that are taxable. These include building maintenance or building cleaning services, lawn care services, disinfecting or pest control services”

Where Pennsylvania's list of services comes from

• “The performance of building repair services on buildings or other property which is permanently affixed to realty are not taxable.” — 61 Pa. Code § 60.1 Building maintenance or building cleaning services; § 60.3 Disinfecting or pest control, no date on the page
• “In general, services are not subject to tax; however, the law has enumerated certain services that are taxable. These include building maintenance or building cleaning services, lawn care services, disinfecting or pest control services” — Sales and Use Tax Audit Manual (PA Department of Revenue), page date: REV (5/30/2024)

What was not checked for Pennsylvania

• What counts as lawn care in Pennsylvania (mowing, fertilizing and so on) as against untaxed landscaping was seen only on the department's answer center, which is not a government (.gov) site, so only the audit manual's naming of lawn care services is used.

Check with the Pennsylvania Department of Revenue

Before you bill: check with the Pennsylvania Department of Revenue. As of November 6, 2026.

This is a plain-words summary of each state's own revenue guidance as of November 6, 2026, not tax advice. Rules have exceptions, and cities and counties can add taxes of their own. Check with the state's tax department, linked on every state's page, before you bill.

Compare Pennsylvania with every state's answer, or with its neighbours just below.

Next door to Pennsylvania

• Delaware: no sales tax; a gross receipts tax on the business
• Maryland: home repair not taxed, installation depends
• New Jersey: home repair taxed, installation depends
• New York: home repair taxed, installation depends
• Ohio: home repair depends, installation depends
• West Virginia: home repair taxed, installation depends

Official sources for Pennsylvania

• 61 Pa. Code § 31.6 Persons rendering nontaxable services (official PA Code) — no date shown
• 61 Pa. Code § 31.11 Definitions (construction contractors) — no date shown
• 61 Pa. Code § 31.12 Imposition of tax (construction contractors) — no date shown
• 61 Pa. Code § 60.1 Building maintenance or building cleaning services; § 60.3 Disinfecting or pest control — no date shown
• Sales and Use Tax Audit Manual (PA Department of Revenue) — REV (5/30/2024)

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