Are Real Estate Sign Installations Taxable? A Practical Guide for Sign Companies
Sales tax compliance is a common source of confusion for real estate sign companies and brokerages. Whether or not a sign installation is taxable often depends on what is being sold and where the service is performed. Understanding these distinctions is critical for staying compliant, avoiding penalties, and properly configuring your billing systems.
When Sign Installations Are Not Taxable
Generally speaking, in most U.S. states, real estate sign installations alone are not considered taxable as part of the home sales process. This is because the installation is treated as a service rather than the sale of tangible personal property. For sign companies whose primary offering is post installation and removal, this typically means no sales tax is required on the installation itself.
State-Level Exceptions You Should Know
While most states follow the non-taxable service model, there are notable exceptions. As of December 10, 2025, New Jersey and Virginia explicitly classify sign installations as taxable. If you operate in these states—or plan to expand into them—it is important to verify your tax settings and ensure you are collecting and remitting sales tax appropriately.
When Sales Tax Does Apply
Sales tax becomes applicable when you sell anything beyond the signpost installation that transfers ownership to another party, such as an agent or brokerage. Common taxable items include riders, sign printing, shoe covers, and other consumable or tangible products. In these cases, the transaction is no longer just a service—it includes the sale of physical goods, which triggers tax obligations in most jurisdictions.
Managing Taxable Sales with SignTraker and QuickBooks
Managing taxable and non-taxable items does not have to be complicated. SignTraker makes it easy to configure taxable products separately from non-taxable services, helping ensure accurate invoicing. However, if your business processes taxable sales, it is strongly recommended that you also use QuickBooks, which provides the tools necessary to aggregate tax amounts, generate reports, and submit payments to the appropriate taxing authorities.
Conclusion
Sales tax rules for sign installations can vary, but the core principle is simple: installations alone are usually not taxable, while tangible items generally are. By understanding your state’s requirements and using tools like SignTraker and QuickBooks together, you can stay compliant, reduce administrative headaches, and focus on growing your sign business with confidence.
For additional information on SignTraker’s real estate sign tracking and real estate sign installation software, or how to join SignTraker’s network of professional sign installers throughout the United States and Canada, contact Douglas Deist, Vice President, Marketing and Technology, at 443-938-9178 Ext 2.
SignTraker Technologies LLC is a privately held sign installation service software provider located in Gaithersburg, MD. The company supplies cloud-based mobile software, consulting, and durable products to companies and real estate firms interested in providing a superior ordering and sign marketing experience for their stakeholders. For additional information, contact sales@signtraker.com.
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