Pennsylvania Sales Tax on Software and Digital Products Pennsylvania: Sales Tax Handbook

Pennsylvania:

Are Software and Digital Products subject to sales tax?

While Pennsylvania's sales tax generally applies to most transactions, certain items have special treatment in many states when it comes to sales taxes. This page describes the taxability of software and digital products in Pennsylvania, including canned software - delivered on tangible media, canned software - downloaded, custom software - delivered on tangible media, custom software - downloaded, customization of canned software and digital products. To learn more, see a full list of taxable and tax-exempt items in Pennsylvania.


Canned Software - Delivered on Tangible Media
TAXABLE
Sales of canned software - delivered on tangible media are subject to sales tax in Pennsylvania.

Canned Software - Downloaded
TAXABLE
Sales of canned software - downloaded are subject to sales tax in Pennsylvania.

Custom Software - Delivered on Tangible Media
EXEMPT
Sales of custom software - delivered on tangible media are exempt from the sales tax in Pennsylvania.

Custom Software - Downloaded
EXEMPT
Sales of custom software - downloaded are exempt from the sales tax in Pennsylvania.

Customization of Canned Software
TAXABLE
In the state of Pennsylvania, any reasonable, separately stated charges for any modifications made to canned software which was done specifically for a particular customer are considered to be exempt.

Digital Products
EXEMPT
Sales of digital products are exempt from the sales tax in Pennsylvania.



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Source: http://www.salestaxhandbook.com/pennsylvania/sales-tax-taxability/software-and-digital-products