Pennsylvania: Sales Tax Handbook

Pennsylvania:

Are Manufacturing and Machinery 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 manufacturing and machinery in Pennsylvania, including machinery, raw materials and utilities & fuel. To learn more, see a full list of taxable and tax-exempt items in Pennsylvania.

Machinery

EXEMPT

Sales of machinery are exempt from the sales tax in Pennsylvania.

Raw Materials

EXEMPT

In the state of Pennsylvania, the exemption applies directly to any sorts of property which is predominantly used directly in the manufacturing process. In addition, any materials that will be incorporated as ingredients or components of any manufactured products will qualify for a resale exemption.

Utilities & Fuel

EXEMPT

In the state of Pennsylvania, it is considered to be exempt so long as it is used predominantly and directly in the manufacturing or processing operations.

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