Resale Certificates for Candle and Soap Makers: Stop Paying Sales Tax on Your Supplies
You pour 50 candles a week. Each one requires wax, a wick, fragrance oil, a jar, and a label. All of those materials end up in the hands of your customer as part of a finished product. So why are you paying sales tax on them?
If you are running a candle or soap making business, your raw materials are manufacturing inputs. They are not personal consumption. A resale certificate makes your supply purchases tax-exempt and keeps more money in your business. For a maker spending $800 per month on supplies in a state with 7% sales tax, that is $672 per year back in your pocket.
Handmade Candles and Soap
Why Candle and Soap Makers Qualify
You are a manufacturer. You buy raw materials, transform them through a production process (melting, mixing, curing, pouring), and sell a finished consumer product. The raw materials you purchase are not for your personal use. They are inputs that become part of the product you sell.
This is the same principle that applies to any manufacturer, from a furniture maker buying lumber to a bakery buying flour. The sales tax is collected once, at the point of final sale to the consumer. Taxing the raw materials and then taxing the finished product would be double taxation.
Apply for Your Resale Certificate
What You Can Buy Tax-Free
Candle Making Supplies (All Exempt When Incorporated Into Product)
| Supply | Exempt? | Notes |
|---|---|---|
| Soy wax (Golden Brands 464, EcoSoya) | Yes | Primary raw material |
| Paraffin wax | Yes | Primary raw material |
| Coconut wax, beeswax, palm wax | Yes | Primary raw material |
| Fragrance oils | Yes | Incorporated into product |
| Essential oils | Yes | Incorporated into product |
| Candle dye and colorants | Yes | Incorporated into product |
| Wicks (CD, ECO, wood wicks) | Yes | Incorporated into product |
| Wick tabs and wick stickers | Yes | Incorporated into product |
| Jars, tins, and vessels | Yes | Sold as part of the finished product |
| Lids for containers | Yes | Sold as part of the finished product |
| Warning labels (required by law) | Yes | Affixed to the product |
| Branded labels and stickers | Yes | Affixed to the product |
| Dust covers and shrink wrap | Yes | Part of the finished product presentation |
Soap Making Supplies (All Exempt When Incorporated Into Product)
| Supply | Exempt? | Notes |
|---|---|---|
| Lye (sodium hydroxide for bar soap) | Yes | Consumed in saponification |
| Potassium hydroxide (for liquid soap) | Yes | Consumed in saponification |
| Base oils (olive, coconut, palm, castor) | Yes | Primary raw material |
| Butters (shea, cocoa, mango) | Yes | Incorporated into product |
| Fragrance oils and essential oils | Yes | Incorporated into product |
| Micas, oxides, and colorants | Yes | Incorporated into product |
| Exfoliants (oatmeal, pumice, coffee grounds) | Yes | Incorporated into product |
| Melt-and-pour soap base | Yes | Primary raw material |
| Soap packaging (boxes, wrapping, bands) | Yes | Transferred to customer |
| Labels | Yes | Affixed to the product |
| Shrink wrap bands (for bath bombs, etc.) | Yes | Transferred to customer |
The same principle applies to bath bombs, lotions, lip balms, and sugar scrubs. Every ingredient that physically ends up in the finished product qualifies.
What You CANNOT Buy Tax-Free
Not everything in your supply order qualifies. Items you use in production but do not sell to the customer are taxable.
Equipment and Tools (Taxable)
| Item | Why It Is Taxable |
|---|---|
| Pouring pots and double boilers | Production equipment, reused |
| Thermometers | Tool, reused |
| Digital scale | Tool, reused |
| Heat gun | Tool, reused |
| Soap molds (silicone, wood) | Reused, not transferred to customer |
| Candle molds (for pillar candles) | Reused, not transferred to customer |
| Wick centering tools | Tool, reused |
| Mixing utensils (spatulas, whisks) | Tool, reused |
| Safety equipment (goggles, gloves for handling lye) | Personal protective equipment |
| Immersion blender (for soap) | Tool, reused |
Business Supplies (Taxable)
- Printer and ink (for labels, if you print them yourself; the paper/labels themselves may qualify if they become part of the product)
- Shipping supplies that do not transfer to the customer (packing peanuts are gray; boxes you ship in typically qualify)
- Office supplies
- Photography equipment for product photos
- Craft show display materials (tablecloths, risers, signs)
The Mold Question
A silicone soap mold you use 500 times is production equipment. You are not selling the mold to the customer. It is taxable. But a candle poured into a ceramic mug that the customer keeps? That mug is a container that transfers to the customer. It is exempt.
Major Suppliers and How to Set Up
CandleScience
One of the largest candle making supply companies. Based in Durham, NC.
- Products: Soy wax, fragrance oils, wicks, jars, lids, dye, packaging
- Tax exemption: Upload your resale certificate during account setup at candlescience.com. Once on file, all qualifying orders are tax-exempt.
- Minimums: None for most products. Case pricing available for volume orders.
Bulk Apothecary
Large supplier for both candle and soap makers. Based in Aurora, OH.
- Products: Waxes, fragrance oils, essential oils, lye, base oils, butters, melt-and-pour bases, containers, packaging
- Tax exemption: Submit your resale certificate through your account. Bulk Apothecary charges tax to Ohio customers unless a certificate is on file.
- Minimums: None, but bulk pricing tiers reward larger orders.
Bramble Berry
The go-to supplier for soap makers. Founded by Anne-Marie Faiola (the "Soap Queen"). Based in Bellingham, WA.
- Products: Melt-and-pour bases, cold process supplies, lye, fragrance oils, colorants, molds, packaging
- Tax exemption: Upload your resale certificate to your account. Washington state customers will need a resale permit on file.
- Perks: Excellent tutorials and recipes. Strong community.
Other Notable Suppliers
| Supplier | Best For |
|---|---|
| Lone Star Candle Supply | Wax, fragrance, and jars (Texas-based) |
| Flaming Candle | Fragrance oils and candle supplies |
| NorthWood Distributing | Wax (soy, paraffin, coconut blends) |
| Nurture Soap | Micas, colorants, and soap-making supplies |
| Wholesale Supplies Plus | Wide range of bath and body supplies |
| New Directions Aromatics | Essential oils and raw ingredients in bulk |
| Voyageur Soap & Candle | Canadian supplier, ships to US |
For each supplier, the process is the same: create an account, upload or email your resale certificate, and future qualifying orders ship tax-free.
The Hobby vs. Business Distinction
This matters for your resale certificate and for taxes generally. The IRS and your state draw a line between a hobby (something you do for fun) and a business (something you do to make money).
A resale certificate is issued to businesses. If you make candles for friends and occasionally sell one at a church bazaar, you are a hobbyist. You do not need a resale certificate.
The line is about intent and regularity. If you sell on Etsy every week, track income and expenses, file a Schedule C, and operate with the intent to profit, you are a business. Register for a sales tax permit, get your certificate, collect tax from customers, and file returns.
Selling on Etsy, Amazon Handmade, and Your Own Website
Etsy
Etsy collects and remits sales tax on behalf of sellers in all states that require marketplace facilitator collection. This means Etsy handles the sales tax your customers pay.
You still need a resale certificate for your supply purchases. Etsy collecting tax on your behalf does not change your obligation to buy materials tax-free as a manufacturer.
Amazon Handmade
Same as Etsy. Amazon is a marketplace facilitator and handles sales tax collection.
Shopify / Your Own Website
If you sell through your own website, you are responsible for collecting and remitting sales tax. Set up tax collection in your platform settings based on where you have nexus.
Craft Fairs and Farmers Markets
When you sell in person, you collect sales tax at the rate for the location where the sale happens. Track each event separately (date, location, gross sales, tax collected) and include those sales in your regular filing.
Packaging: The Tricky Details
Packaging tax rules vary by state, and candle and soap makers deal with a lot of packaging.
Generally Exempt (Transfers to Customer)
- Gift boxes the customer receives
- Tissue paper wrapping the product
- The outer box for shipping a customer order
- Ribbons or decorative elements on the product
- Branded stickers on the product or packaging
- Cellophane wrapping around soap bars
Potentially Taxable (Depends on State)
- Packing peanuts and void fill (some states exempt, others tax)
- Poly mailers (most states exempt as shipping materials)
- Branded tissue paper in the box (most states exempt)
The safest approach: if the packaging material goes to the customer with the product, treat it as exempt. If you are unsure about a specific item, check your state's guidance on packaging and shipping materials.
Real Savings by Business Size
| Monthly Supply Spend | Annual Tax Saved (7%) | What That Buys You |
|---|---|---|
| $300 (small/new maker) | $252 | 30 lbs of soy wax and fragrance |
| $800 (mid-size maker) | $672 | A full restock of jars and wicks |
| $2,000 (growing business) | $1,680 | A new mold collection or craft show fees |
| $5,000 (established brand) | $4,200 | Major equipment upgrade |
For a candle business running on 50 to 60% margins, $672 in annual tax savings is equivalent to generating an additional $1,120 to $1,344 in revenue. It is not life-changing money for a large business, but for a maker scaling out of a home studio, every dollar matters.
Common Mistakes Makers Should Avoid
Mistake 1: Not Getting a Certificate Because "It Is Just a Side Hustle"
If you are selling regularly and filing taxes on the income, get the certificate. The savings add up from day one.
Mistake 2: Using the Certificate for Personal Supplies
You make candles for your business and also burn candles at home. The wax you buy for personal candles is not a resale purchase. Keep business and personal purchases separate.
Mistake 3: Forgetting to Collect Sales Tax at Craft Fairs
Etsy collects tax for you online. At a craft fair, you are the retailer. Build sales tax into your pricing or add it at checkout, but do not skip it.
Mistake 4: Claiming Equipment as Resale
Your $300 digital scale, your $150 pouring pot, and your $80 thermometer are business tools. They do not qualify for the resale exemption. Pay the tax on equipment.
Getting Started
- Decide you are a business. If you are selling regularly and intend to profit, you are a business.
- Register for a sales tax permit in your state.
- Apply for your resale certificate. You can do this through your state tax authority or through our application service.
- Submit your certificate to every supplier where you buy materials (CandleScience, Bulk Apothecary, Bramble Berry, etc.).
- Start collecting sales tax from your customers at craft fairs and through your own website.
- File your sales tax returns on the schedule your state assigns you (monthly, quarterly, or annually).
Apply for Your Resale Certificate