Pennsylvania Resale Certificate Guide 2026: How to Get Yours

Pennsylvania is the sixth-most populous state in the U.S. and a major hub for manufacturing, agriculture, healthcare, and retail. If you buy inventory or materials for resale in Pennsylvania, you need to understand the state's Exemption Certificate, Form REV-1220, and how it interacts with the state's sales tax system. This guide walks through every step of getting and using a Pennsylvania resale certificate in 2026.

Pennsylvania Sales Tax Basics

State Base Rate

The Pennsylvania state sales tax rate is 6%. This flat rate applies to all taxable transactions statewide.

Local Taxes

Pennsylvania has two counties that impose additional local sales tax:

This means most of Pennsylvania pays just 6%, but businesses operating in Philadelphia or the Pittsburgh area face higher rates.

Use our sales tax lookup tool to verify the rate for your specific location.

What Is Taxable in Pennsylvania?

Pennsylvania's tax base is narrower than many states:

• Most tangible personal property is taxable
• Clothing is exempt from sales tax (one of few states with this exemption)
• Most food for home consumption is exempt
• Prescription and non-prescription drugs are exempt
• Textbooks are exempt
• Certain services are taxable, including cleaning, lobbying, building maintenance, and help supply services
• Digital products: Software and certain digital goods are taxable, but many digital downloads are evolving in how they are treated

The Clothing Exemption

Pennsylvania's clothing exemption is one of its most distinctive features. Everyday clothing and footwear are tax-free. However, certain items categorized as "accessories" (formal wear, fur clothing, sport-specific clothing) may still be taxable. This affects resellers who deal in apparel.

What Form Do You Need?

Pennsylvania uses Form REV-1220, the Pennsylvania Exemption Certificate. This is issued by the Pennsylvania Department of Revenue.

About Form REV-1220

The REV-1220 is a multi-purpose exemption form. It covers not only resale exemptions but also exemptions for manufacturing, farming, charitable organizations, government purchases, and more. When using it for resale, you select the "Resale" exemption reason.

The form includes:

• Purchaser's name, address, and phone number
• Pennsylvania sales tax license number
• The type of exemption being claimed
• Description of items purchased
• Purchaser's signature and date

Key Difference from Other States

Because REV-1220 covers multiple exemption types, sellers should verify that the buyer checked the correct box. If a buyer claims a resale exemption but is actually buying items for their own use, the seller can be held liable for the uncollected tax if they did not exercise reasonable care.

Where to Get the Form

Form REV-1220 is available as a free download from the Pennsylvania Department of Revenue website. It is also available by calling the department.

Who Needs a Pennsylvania Resale Certificate?

You need a Pennsylvania resale certificate if you purchase tangible personal property for the purpose of reselling it. Qualifying businesses include:

Retailers buying inventory from wholesalers, distributors, or manufacturers to sell in stores or online.

Wholesalers purchasing goods from manufacturers or importers to redistribute to retailers.

Online sellers with a Pennsylvania sales tax license who buy inventory for resale through any platform.

Manufacturers buying raw materials that become part of a product manufactured for sale. Pennsylvania also has a separate manufacturing exemption that may apply to machinery and equipment used in manufacturing.

Restaurants and caterers purchasing food ingredients that will be prepared and sold as meals.

Who Does NOT Qualify

• Consumers buying for personal use
• Businesses purchasing equipment, supplies, or office items for internal use
• Contractors buying materials for installation into real property (generally treated as the end consumer)

How to Apply for a Pennsylvania Resale Certificate

Step 1: Register for a Pennsylvania Sales Tax License

You must have a Pennsylvania sales tax license before you can issue a REV-1220 for resale. Registration is done through the Pennsylvania Department of Revenue.

What you need to register:

• Federal EIN or SSN
• Business legal name and trade name (DBA)
• Business address and mailing address
• Business type (sole proprietor, LLC, corporation, etc.)
• Description of business activities
• Expected start date of sales
• Estimated monthly sales

Registration is free. You can register online through Pennsylvania's myPATH portal.

Processing time: Typically 5 to 10 business days for online applications.

Step 2: Complete Form REV-1220

Download the form and fill in your business information. Check the box for "Resale" as your exemption reason. Include your Pennsylvania sales tax license number and a description of the products you will purchase for resale.

Step 3: Provide the Certificate to Your Suppliers

Give the completed REV-1220 to each supplier from whom you want to purchase tax-free. The supplier keeps the certificate on file.

Need help getting set up? We handle the entire process from license registration to certificate completion.

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Multi-State Considerations

Pennsylvania and the MTC

Pennsylvania does NOT participate in the Streamlined Sales Tax (SST) agreement. However, Pennsylvania does accept properly completed exemption certificates from other states, as long as the buyer provides valid registration information.

Out-of-state buyers can use the REV-1220 if they provide their home state's registration number and explain that the goods will be resold.

Out-of-State Sellers Shipping Into Pennsylvania

Pennsylvania's economic nexus threshold is $100,000 in sales to Pennsylvania customers in the prior or current calendar year. If you exceed this threshold, you must register, collect, and remit Pennsylvania sales tax.

Use Tax Obligations

If you purchase goods from a vendor who does not collect Pennsylvania sales tax (such as an out-of-state online vendor), you owe Pennsylvania use tax at 6% (plus local tax if applicable) on those purchases, unless they qualify for the resale exemption.

For more on multi-state rules, see our guide on multi-state resale certificates.

Common Mistakes with Pennsylvania Resale Certificates

Mistake 1: Checking the Wrong Exemption Box on REV-1220

Because the REV-1220 covers multiple exemption types, some buyers accidentally check "Manufacturing" or "Charitable" instead of "Resale." This can invalidate the certificate during an audit.

Mistake 2: Assuming Clothing Resales Are Handled Differently

Since clothing is already exempt from Pennsylvania sales tax, some resellers wonder whether they need a resale certificate for clothing purchases. You do. The resale exemption applies to the transaction itself, regardless of whether the item is also covered by another exemption. Documenting the resale intent protects both you and the seller.

Mistake 3: Forgetting the Philadelphia or Allegheny Local Tax

Businesses in Philadelphia (8% combined) and Allegheny County (7% combined) sometimes forget that local taxes apply on top of the 6% state rate. If you are purchasing for internal use (not resale) in these areas, the total tax is higher than the base 6%.

Mistake 4: Not Keeping Certificates on File

Pennsylvania requires sellers to maintain exemption certificates for at least 3 years after the last transaction covered by the certificate. If you are the seller and you lose the certificate, you may be liable for the tax.

Pennsylvania-Specific Rules You Should Know

The Manufacturing Exemption

Pennsylvania offers a broad exemption for machinery, equipment, and supplies used directly in manufacturing. If your business both manufactures and resells goods, you may use the REV-1220 for both exemptions, but be careful to specify the correct reason for each category of purchase.

Wrapping and Packaging Supplies

Materials used to wrap, package, or ship goods that you sell are exempt from Pennsylvania sales tax. This includes boxes, tape, bags, labels, and packing materials, as long as they are transferred to the buyer along with the product.

Vendor Discount

Pennsylvania offers a vendor discount to businesses that file and pay their sales tax returns on time. The discount is 1% of the tax collected, up to $25 per filing period. This small incentive rewards timely compliance.

Digital Goods and Software

Pennsylvania taxes canned software (pre-written software) whether delivered physically or electronically. Custom software designed specifically for a single customer is generally not taxable. If you resell software, make sure you understand which types are taxable.

Farm Equipment and Supplies

Pennsylvania exempts purchases of farm equipment, feed, seed, fertilizer, and other agricultural supplies used directly in farming operations. Farmers use the REV-1220 with the "Farming" exemption box checked.

How Much Can You Save?

At Pennsylvania's standard rate of 6% (or up to 8% in Philadelphia), the savings from proper use of a resale certificate are significant.

Calculate your specific savings with our savings calculator.

Pennsylvania Resale Certificate FAQs

Q: Does the Pennsylvania resale certificate expire? A: No. Pennsylvania exemption certificates do not have an expiration date. They remain valid as long as the buyer's sales tax license is active and the information is accurate.

Q: Can I use the REV-1220 for purchases outside Pennsylvania? A: No. The REV-1220 is a Pennsylvania form. For purchases in other states, use that state's form or the MTC Uniform Certificate (if the state accepts it).

Q: Is there a fee for a Pennsylvania sales tax license? A: No. Pennsylvania does not charge a fee for sales tax registration.

Q: What if I sell both taxable and non-taxable items? A: You still need a sales tax license. You collect tax on taxable items and do not collect on exempt items (like clothing). Your resale certificate can be used to buy inventory for both categories.

Q: How does use tax work in Pennsylvania? A: If you buy taxable goods from an out-of-state vendor who does not charge Pennsylvania tax, you owe use tax at the same rate (6%, plus local if applicable) when you use the goods in Pennsylvania. Items purchased for resale are exempt.

Get Started with Your Pennsylvania Resale Certificate

Pennsylvania's straightforward 6% rate and multi-purpose REV-1220 form make the process relatively simple. Whether you operate in Philadelphia, Pittsburgh, or anywhere else in the state, getting properly set up is the first step to tax-free inventory purchasing.

• Expert guidance through Pennsylvania sales tax registration
• Help completing the REV-1220 correctly
• Ongoing compliance support

Get Your Resale Certificate -->

For more details on Pennsylvania's requirements, visit our Pennsylvania state page.

A Pennsylvania resale certificate saves you 6% to 8% on every inventory purchase. Get your sales tax license, complete the REV-1220, and start buying tax-free.

Related Articles

• What Is a Resale Certificate? - Learn the fundamentals of resale certificates and how they work.
• Sales Tax Exemption Forms: Complete Guide - Understand how Pennsylvania's REV-1220 fits into the broader landscape of exemption forms.
• How to Renew Your Resale Certificate - Pennsylvania certificates do not expire, but here is what you need to know about keeping them current.