Do I Have To Pay Sales Tax On Landscaping Equipment?

Answer:

You must pay sales tax on the supplies and equipment used in landscaping and lawn care.

Answer:

Generally, landscape contractors must pay sales taxes on all materials and equipment used on a job. Labor is not subject to sales tax. However, you cannot itemize sales taxes that you pay on materials and equipment on the invoice you present to your customer. For example, you have contracted to put in a paver patio for a client.


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Frequently Asked Questions

How do landscapers file taxes?

Since you are self-employed as a gardener or landscaper, you must pay self-employment tax in addition to income tax. Use Schedule SE to calculate what you owe. Self-employment tax includes taxes to fund Social Security and Medicare. It is set in 2020 at a rate of 15.3%.

Do you have to pay sales tax to a landscape contractor?

It's actually pretty straight forward - mostly. Generally, landscape contractors must pay sales taxes on all materials and equipment used on a job. Labor is not subject to sales tax. However, you cannot itemize sales taxes that you pay on materials and equipment on the invoice you present to your customer.

Do you have to pay sales tax on lawn care?

Also, lawn care services are subject to sales taxes in Pennsylvania, but that's another topic. The Pennsylvania Department of Revenue has a pretty good website on this topic in a question and answer format.

Do you have to pay taxes on an equipment sale?

Now that the 100% bonus is no longer available, the gain from an equipment sale can generate an unexpected tax gain and resulting tax payment even though your books reflect a break-even or book loss - hence, the need to understand your tax position for 2012 before you make any equipment moves.

Do you have to pay sales tax on paver patio?

Generally, landscape contractors must pay sales taxes on all materials and equipment used on a job. Labor is not subject to sales tax. However, you cannot itemize sales taxes that you pay on materials and equipment on the invoice you present to your customer. For example, you have contracted to put in a paver patio for a client.

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