Pennsylvania Sales Tax Exemptions / Tax Free Items Pennsylvania: Sales Tax Handbook

Pennsylvania:

What purchases are exempt from the Pennsylvania sales tax?

While the Pennsylvania sales tax of 6.00% applies to most transactions, there are certain items that may be exempt from taxation. This page discusses various sales tax exemptions in Pennsylvania.

Sales Tax Exemptions in Pennsylvania

In Pennsylvania, certain items may be exempt from the sales tax to all consumers, not just tax-exempt purchasers.

Some examples of items which the state exempts from tax charges are certain medical prescriptions, some items used in the agricultural industry, cable television services, meals or foodstuff used in furnishing meals for school children, and newsprint paper.

Many states have special, lowered sales tax rates for certain types of staple goods - such as groceries, clothing and medicines. Restaurant meals may also have a special sales tax rate. Here are the special category rates for Pennsylvania:


Clothing

  EXEMPT

Groceries

  EXEMPT

Prepared Food

  6.%

Prescription Drugs

  EXEMPT

OTC Drugs

  EXEMPT

These categories may have some further qualifications before the special rate applies, such as a price cap on clothing items. Groceries are generally defined as "unprepared food", while pre-prepared food may be subject to the restaurant food tax rate.

Candy and soda may be included or excluded from any preferential tax rate depending on whether or not the state considers them to be a "grocery":


Is candy taxable in Pennsylvania? Candy IS considered a grocery in Pennsylvania
Is soda taxable in Pennsylvania? Soda is NOT considered a grocery in Pennsylvania

Are services, shipping, installation, etc taxable in Pennsylvania?

The taxability of transactions involving services, shipping, and installation of tangible goods can be slightly complicated with various laws applying to slightly different situations. To learn more about how these transactions, and other more complicated situations, are subject to the Pennsylvania sales tax see the Pennsylvania sales taxability FAQ page.


Other tax-exempt items in Pennsylvania

This table lists a number of additional categories of goods and services that are exempt from Pennsylvania's sales tax. For a list that also shows taxable items, see the list of taxable and nontaxable items in Pennsylvania.

Category Exemption Status
Clothing
General Clothing EXEMPT *
Food and Meals
Grocery Food EXEMPT *
Manufacturing and Machinery
Machinery EXEMPT
Raw Materials EXEMPT *
Utilities & Fuel EXEMPT *
Medical Goods and Services
Medical Devices EXEMPT
Medical Services EXEMPT
Medicines EXEMPT
Newspapers and Magazines
Newspapers EXEMPT *
Occasional Sales
General Occasional Sales EXEMPT *
Optional Maintenance Contracts
Parts Purchased for Use in Performing Service Under Optional Maintenance Contracts EXEMPT
Services
Transportation Services EXEMPT
Software and Digital Products
Custom Software - Delivered on Tangible Media EXEMPT
Custom Software - Downloaded EXEMPT
Digital Products EXEMPT
Trade-Ins
General Trade-Ins EXEMPT

* See notes in category taxability page for details



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Source: http://www.salestaxhandbook.com/pennsylvania/sales-tax-exemptions