Who collects Pennsylvania sales tax on dropshipped orders?

You do, as the retailer. Your dropshipper invoices you at wholesale; you invoice the customer at retail. Collection duty follows the retail transaction — that's you.

Will my dropshipper charge me Pennsylvania sales tax on the wholesale?

Only if your dropshipper has Pennsylvania nexus AND you can't provide a valid PA resale certificate. Obtain resale certificates for every state where your dropshipper operates.

Does dropshipping trigger economic nexus in Pennsylvania?

Yes, your retail revenue into Pennsylvania still counts toward the $100,000 threshold, independent of how fulfillment happens.

Can I use an out-of-state resale certificate for a dropshipper in Pennsylvania?

Usually yes — most states accept the Streamlined (SST form F0003) or MTC multijurisdiction resale certificate, so your PA dropshipper can take it instead of charging you tax on the wholesale invoice. But California, Florida, Hawaii, Illinois, Maryland, and Massachusetts reject an out-of-state certificate from the true retailer in a drop shipment and effectively require in-state registration (Florida also wants a transaction authorization number). Confirm Pennsylvania's current rule with its Department of Revenue. Verified 2026-06-27.

Pennsylvania Dropshipping Sales Tax Guide — 2026

Updated 2026-07-20

Reviewed by Nexus by State research team using official state tax sources. Last reviewed 2026-07-20.

Guide content last reviewed: 2026-07-20

If your Dropshipping business sells $100,000 into Pennsylvania in a calendar year, you have economic nexus and must register, collect, and remit Pennsylvania sales tax.

Dropshipping sales tax in Pennsylvania

As of June 2026, a Pennsylvania drop shipment is a three-party sale: you collect Pennsylvania sales tax from your customer on the retail price once your sales into the state pass $100,000, while your supplier charges you tax on the wholesale invoice only when it has Pennsylvania nexus and you can’t give it a valid resale certificate.

Dropshipping into Pennsylvania raises three distinct tax questions. First, you (the retailer) have to collect and remit Pennsylvania sales tax on your retail sales if you exceed $100,000. Second, your dropship supplier may charge YOU sales tax on the wholesale invoice if they have Pennsylvania nexus and you can't present a valid resale certificate. Third, the marketplace (if any) handles its own tax on facilitated transactions.

Pennsylvania applies 6.00% as the base state rate; local add-ons average 0.34%.

Resale certificates: which document each state accepts

If you hold a Pennsylvania sales tax permit, you can usually issue your dropshipper a PA resale certificate so it does not charge you sales tax on the wholesale invoice.
No Pennsylvania permit yet? Two multistate forms cover most states: the Streamlined Sales Tax Certificate of Exemption (SST form F0003), honored by all 24 SST member states, and the MTC Uniform Sales & Use Tax Resale Certificate, accepted by roughly 36 states.
A handful of states reject an out-of-state resale certificate from the true retailer in a drop shipment and effectively require in-state registration or extra paperwork — notably California, Florida, Hawaii, Illinois, Maryland, and Massachusetts. Florida also requires the supplier to obtain a transaction authorization number before honoring an MTC certificate. In those states a home-state certificate alone may not protect your supplier, so confirm the rule with that state’s Department of Revenue.

Sources: MTC Uniform Sales & Use Tax Resale Certificate (multijurisdiction) and the Streamlined Sales Tax Governing Board. date_retrieved: 2026-06-27. State acceptance changes — verify with the relevant state DOR before relying on a multistate certificate.

Common dropshipping mistakes in Pennsylvania

Treating your dropshipper's nexus as if it obligates them to collect from the end customer — no, they invoice you at wholesale; you invoice the customer at retail. Only the retail transaction is subject to collection duty.
Forgetting that your retail revenue into Pennsylvania still counts toward the economic nexus threshold, independent of the dropshipping arrangement.
Not keeping resale certificates on file — your supplier will charge you tax (and you'll have already collected from the customer), eroding margin.

Pennsylvania nexus note

Pennsylvania sales tax nexus and economic nexus threshold: more than $100,000 in annual Pennsylvania gross sales, measured by calendar year, creates economic presence for remote sellers and marketplace facilitators (eff. 2019-07-01 under Act 13 of 2019 and Sales and Use Tax Bulletin 2019-01). Pennsylvania uses a sales-only threshold -- no transaction-count test. Gross sales include taxable and nontaxable sales across channels. A marketplace facilitator with no Pennsylvania physical presence counts both facilitated and direct Pennsylvania sales; a marketplace seller counts direct sales plus marketplace sales only when the facilitator does not collect Pennsylvania sales tax on its behalf. After the first collection year, Pennsylvania measures prior calendar-year sales and starts the annual collection period in the second quarter. The state rate is 6%, with local add-ons in Allegheny County (+1%) and Philadelphia (+2%). Pennsylvania 2026 sales/use tax filing calendars list monthly, quarterly, semi-annual, and monthly-with-prepayment filer tracks; returns are due even when no taxable transactions occur in the period. Sellers without physical presence can use a Pennsylvania-certified service provider for registration, filing, collection, and remittance support. Pennsylvania DOR source data last retrieved 2026-05-30.

What to do next

Read the full Pennsylvania overview for thresholds, filing frequency, marketplace facilitator rules, and registration links. Use the nexus calculator to check whether you have crossed the threshold. For background on the post-Wayfair economic nexus framework, see the pillar guide.

Compare related state rules

Pennsylvania vs New Jersey sales tax
compare neighboring marketplace and delivery states before routing supplier shipments.

Digital product cross-checks

If the same seller also offers downloads, prerecorded courses, software access, or digital add-ons, check the buyer-state digital-products guide before treating those receipts like shipped goods:

Marketplace collection cross-checks

Dropshipping sellers that use Amazon, Etsy, eBay, Walmart, TikTok Shop, or another marketplace should separate platform-collected orders from direct-store checkout orders before reusing one state's workflow in another state:

Dropshipping sales tax in other states

Compare Pennsylvania's dropshipping rules with nearby and similar states' dropshipping sales tax guides:

Frequently asked questions

Who collects Pennsylvania sales tax on dropshipped orders?: You do, as the retailer. Your dropshipper invoices you at wholesale; you invoice the customer at retail. Collection duty follows the retail transaction — that's you.
Will my dropshipper charge me Pennsylvania sales tax on the wholesale?: Only if your dropshipper has Pennsylvania nexus AND you can't provide a valid PA resale certificate. Obtain resale certificates for every state where your dropshipper operates.
Does dropshipping trigger economic nexus in Pennsylvania?: Yes, your retail revenue into Pennsylvania still counts toward the $100,000 threshold, independent of how fulfillment happens.
Can I use an out-of-state resale certificate for a dropshipper in Pennsylvania?: Usually yes — most states accept the Streamlined (SST form F0003) or MTC multijurisdiction resale certificate, so your PA dropshipper can take it instead of charging you tax on the wholesale invoice. But California, Florida, Hawaii, Illinois, Maryland, and Massachusetts reject an out-of-state certificate from the true retailer in a drop shipment and effectively require in-state registration (Florida also wants a transaction authorization number). Confirm Pennsylvania's current rule with its Department of Revenue. Verified 2026-06-27.

Sources

date_retrieved: 2026-05-30

See how we verify threshold data and source dates in our Methodology & Sources.