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Taxes / State tax rules / Pennsylvania

Selling on eBay, Poshmark or Etsy from Pennsylvania: sales tax and 1099-K rules

On a marketplace sale delivered in Pennsylvania, a marketplace facilitator with a place of business there, physical or by more than $100,000 of Pennsylvania sales, collects the 6% sales tax, and a marketplace seller who makes no sales outside such marketplaces is excepted from Pennsylvania's sales tax license requirement. The Department of Revenue pages we checked say nothing about a separate Pennsylvania 1099-K rule.

General information, not tax advice. Check with a tax professional about your own situation.

Checked against the official pages listed below on .

Pennsylvania in short

General sales tax:
Yes, 6% state rate
Marketplace facilitator law:
Yes: Tax Reform Code of 1971, § 237(b.1), 72 P.S. § 7237(b.1) (Act 13 of 2019), since Jul 1, 2019
When a marketplace must collect:
for a facilitator with no physical presence, Pennsylvania gross sales over $100,000 in the prior calendar year, counting both facilitated and direct sales; there is no transaction count
Form 1099-K:
No state rule stated on the pages checked

Who collects the tax on a marketplace sale

A marketplace facilitator maintaining a place of business in Pennsylvania, physically or by economic presence, collects and remits the sales tax on all sales by marketplace sellers whose sales are facilitated through its forum.

If you sell only through marketplaces

Section 208(a) excepts from the license requirement a marketplace seller who makes no sales outside a forum where a facilitator must collect on its behalf, and § 237(b)(1) excepts such a seller from collecting if it receives the facilitator's certification. For its own threshold, a seller with no physical presence counts only direct sales and sales through facilitators that do not collect for it.

Registration, resale certificates and what changes when you also sell direct have their own page: Pennsylvania: seller's permit and resale certificate rules.

The law: Tax Reform Code of 1971, § 237(b.1), 72 P.S. § 7237(b.1) (Act 13 of 2019), effective .

"A marketplace facilitator maintaining a place of business in this Commonwealth must collect and remit the sales tax on all sales, leases and deliveries of tangible personal property"
Pennsylvania General Assembly, Tax Reform Code of 1971, Act of Mar. 4, 1971, P.L. 6, No. 2, Tax Reform Code § 237(b.1)
"with the exception of a marketplace seller who makes no sales outside a forum for which a marketplace facilitator is required to collect sales tax on the seller's behalf"
Pennsylvania General Assembly, Tax Reform Code of 1971, Act of Mar. 4, 1971, P.L. 6, No. 2, Tax Reform Code § 208(a), 72 P.S. § 7208(a)
"Economic presence in Pennsylvania is measured by sales threshold only. There is no transactional count requirement."
Pennsylvania Department of Revenue, Online Retailers, Economic presence
"should use only its direct sales and those sales made through a marketplace facilitator that does not collect sales tax on its behalf"
Pennsylvania Department of Revenue, Online Retailers, Economic presence (marketplace sellers)

Sources: Tax Reform Code of 1971, Act of Mar. 4, 1971, P.L. 6, No. 2; Online Retailers; Sales and Use Tax Bulletin 2026-01, Sales of Salvage Vehicles and Vehicles Without a Certificate of Title; Tax Obligations for Online Retailers.

Pennsylvania's sales tax

Pennsylvania imposes a 6% sales tax on each separate retail sale of tangible personal property or taxable services in the Commonwealth. Local sales taxes were not checked for this page.

"Pennsylvania law imposes a six percent (6%) sales tax upon each separate sale at retail of TPP or services within this Commonwealth"
Pennsylvania Department of Revenue, Sales and Use Tax Bulletin 2026-01, Sales of Salvage Vehicles and Vehicles Without a Certificate of Title, Section II(a)

Sources: Sales and Use Tax Bulletin 2026-01, Sales of Salvage Vehicles and Vehicles Without a Certificate of Title.

Form 1099-K: Pennsylvania and the federal test

The Department of Revenue online retailer page and Sales and Use Tax Bulletin 2026-01 read for this page say nothing about a Pennsylvania Form 1099-K requirement.

The federal test, for comparison: the IRS says a payment app or online marketplace must send a Form 1099-K when payments for goods or services total over $20,000 in more than 200 transactions, and adds: "However, they may send you a Form 1099-K with lower amounts and/or transactions." (Understanding your Form 1099-K, reviewed ). The Instructions for Form 1099-K count both parts for the calendar year, through each platform separately, and say the box 1a gross amount is figured without adjustments for credits, discounts, fees, refunds or shipping, so a 1099-K figure is not the same as profit. More on the federal rule in Form 1099-K for resellers.

Sources: Online Retailers.

Worked examples

Tax on a $40 marketplace sale to Harrisburg

At 6%, a $40.00 taxable item carries $2.40 of Pennsylvania sales tax, collected by the facilitator. Local tax and shipping are left out of this figure.

Which sales count toward a seller's $100,000

An out-of-state seller sold $90,000 into Pennsylvania from its own website and $60,000 through marketplaces that collect for it in calendar 2025. Only the $90,000 counts, which is under $100,000. Had $20,000 of the marketplace sales gone through a facilitator that did not collect, the count would be $110,000, over the threshold. The Department applies a 2025 result to the April 1, 2026 to March 31, 2027 collection period.

Parts car sold on an internet auction site

Bulletin 2026-01 (September 28, 2026) treats a salvage vehicle, meaning one for which a Pennsylvania title cannot be obtained at the time of purchase, as taxable tangible personal property and says marketplace facilitators, including internet auction websites, collect the sales tax on it. On a $1,500 sale, 6% is $90.00.

Edge cases and details

  • Pennsylvania measures economic presence by calendar year and starts collection in the second quarter: a seller over $100,000 in one calendar year collects from April 1 of the next year through March 31 of the year after, the Department says.
  • Before July 1, 2019, Pennsylvania's marketplace sales provisions let online sellers and facilitators choose between collecting tax and sending Pennsylvania customers use tax notices; the Department says that choice no longer applies to businesses with nexus under the current standards.
  • A seller with no physical presence that uses a Certified Service Provider is not required to obtain a Pennsylvania license or file sales tax returns while it keeps using the CSP, the Department says.
  • The Department's page counts gross sales on all channels, taxable and nontaxable, toward the $100,000 economic presence test, apart from the marketplace exclusion for sellers.
  • The Department's online retailer guidance says a business that keeps inventory in Pennsylvania and makes direct sales to Pennsylvania customers must collect sales tax, and a corporation that keeps inventory in Pennsylvania is subject to corporate net income tax.

What to do

  1. If any marketplace you use does not collect Pennsylvania tax for you, add its Pennsylvania sales to your direct sales for the calendar year; the Department counts those toward your $100,000.
  2. Keep each facilitator's certification that it will collect, report and remit Pennsylvania tax, since § 237(b)(1) ties the seller's exception to receiving it.
  3. If you sell salvage vehicles or vehicle parts, read Bulletin 2026-01 and check with a tax professional.

Common questions

Do I need a Pennsylvania sales tax license if I only sell on marketplaces?

Section 208(a) of the Tax Reform Code excepts a marketplace seller who makes no sales outside a forum where a facilitator is required to collect on its behalf. Sales elsewhere, or through a facilitator that does not collect, change that.

Does Pennsylvania have a 200-transaction threshold?

No. The Department says economic presence is measured by the $100,000 sales threshold only, with no transaction count.

When did Pennsylvania require marketplace facilitators to collect?

July 1, 2019, under Act 13 of 2019, for facilitators with a place of business in Pennsylvania, including economic presence over $100,000.

Does Pennsylvania have its own 1099-K threshold?

The Department of Revenue pages we checked say nothing about a Pennsylvania 1099-K rule.

Related

General information, not tax advice

This page summarizes Pennsylvania's own published pages and statutes as read on , and the IRS's 1099-K pages. It doesn't say what you should file, register for or pay. Rules depend on your situation and change: check with a tax professional, or with the state's revenue department.

Sources

Official pages this page is built from, with the day each was read.

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