Cleaning Service Resale Certificate Guide: What Janitorial Companies Actually Qualify For
Here is the honest truth up front: most cleaning companies have limited use for a resale certificate. Cleaning is a service business, and the supplies you use (chemicals, paper towels, trash bags, mop heads) are consumed during service delivery. They do not become part of a product you sell to the customer. That means most cleaning supply purchases do not qualify for the resale exemption.
But "limited" does not mean "none." Some cleaning companies do have legitimate resale activity, and understanding the distinction can save you money where the exemption does apply.
Cleaning Service
Why Most Cleaning Supplies Are NOT Exempt
A resale certificate exempts purchases of items you buy specifically to resell to customers. The key word is resell. You have to transfer the item to the customer as part of a sale.
When you clean a client's office, you spray cleaner on surfaces, wipe them down, and take the dirty towels with you. The cleaning chemical was consumed. The paper towels went into the trash. The client received a clean office, which is a service, not a tangible product.
This is fundamentally different from a florist buying flowers to arrange and sell, or a sign shop buying vinyl to make a sign. Those businesses transfer physical products to customers. Cleaning businesses consume products while providing a service.
The bottom line: You cannot use a resale certificate to buy your everyday cleaning chemicals, paper products, trash bags, or equipment tax-free. Those are taxable business expenses.
Apply for Your Resale Certificate
When a Cleaning Company CAN Use a Resale Certificate
There are specific scenarios where a cleaning company does have legitimate resale activity:
Scenario 1: Selling Cleaning Products at Retail
If your cleaning company also sells cleaning products to customers (retail bottles of cleaner, air fresheners, specialty products), those products are resale inventory. You buy them to resell, not to consume. A resale certificate covers these purchases.
Example: You sell a $15 bottle of your custom cleaning solution to residential clients for maintenance between visits. The bottles, labels, and cleaning solution you purchase for this purpose are resale items.
Scenario 2: Selling or Restocking Consumable Supplies
Some janitorial contracts include restocking paper towels, toilet paper, hand soap, and trash can liners as a separately invoiced product sale. If your contract specifically bills these supplies as products sold to the client (not included as part of the service fee), they may qualify as resale items.
Important distinction: If your contract says "cleaning service: $2,000/month" and you happen to leave behind paper towels, that is part of the service. If your contract says "cleaning service: $1,800/month" and "supplies: $200/month" with the supplies listed as a separate line item, the $200 in supplies might qualify as a product sale.
This depends on your state's rules and how clearly the contract distinguishes between service and product sales. Consult your state's tax authority for specific guidance.
Scenario 3: Reselling Equipment to Clients
If you sell cleaning equipment to customers (vacuum cleaners, floor scrubbers, pressure washers), those are resale items and qualify for tax-free purchase.
Scenario 4: Providing Supplies Under a Supply Agreement
Some commercial cleaning companies have separate supply agreements where they purchase and resell restroom supplies, break room supplies, or janitorial products to building managers. If these are structured as product sales (with itemized invoices), they can qualify for the resale exemption.
What You Can Buy Tax-Free (Limited List)
Only items you actually resell to customers qualify:
- Cleaning products sold at retail (retail-size bottles, spray cleaners, specialty products)
- Paper products restocked and separately invoiced (toilet paper, paper towels, hand soap dispensed items)
- Trash can liners separately invoiced as supply sales
- Air fresheners and deodorizers sold to clients
- Cleaning equipment sold to customers (not equipment you use)
- Packaging for retail cleaning products (bottles, labels, boxes)
What You CANNOT Buy Tax-Free
This is the longer list for cleaning companies:
| Item | Why It Is Taxable |
|---|---|
| Cleaning chemicals you use on jobs | Consumed during service |
| Mops, brooms, and buckets | Your tools |
| Vacuum cleaners you use | Business equipment |
| Floor scrubbers and buffers | Business equipment |
| Microfiber cloths and rags | Consumed during service |
| Paper towels you use during cleaning | Consumed during service |
| Trash bags used during service | Consumed during service |
| Spray bottles and applicators | Your tools |
| Protective equipment (gloves, masks) | Personal use |
| Uniforms | Personal use |
| Vehicle costs | Business expense |
| Insurance and bonding | Business expense |
The Service Tax Question
In some states, cleaning services themselves are subject to sales tax. This is separate from the resale certificate question. States that tax services may require you to collect sales tax on your cleaning invoices.
| State | Are Cleaning Services Taxable? |
|---|---|
| California | Janitorial services are generally not taxable |
| Texas | Janitorial services are taxable |
| New York | Cleaning services for commercial buildings are taxable |
| Florida | Nonresidential cleaning services are taxable |
| Ohio | Janitorial and building maintenance services are not taxable |
| Connecticut | Janitorial services are taxable |
If your state taxes cleaning services, you need to register for sales tax and collect it from your customers regardless of whether you have a resale certificate.
Dollar Savings: Be Realistic
Because most cleaning supply purchases do not qualify for the resale exemption, the savings from a resale certificate are modest for a typical cleaning company. Here is an honest look:
| Scenario | Monthly Resale Purchases | Annual Tax Savings (7%) |
|---|---|---|
| Cleaning company with no retail sales | $0 | $0 |
| Company selling $200/month in retail products | $200 | $168 |
| Janitorial company with $500/month in supply resale | $500 | $420 |
| Large commercial cleaner with supply contracts | $2,000 | $1,680 |
Compare this to a sign shop or bakery where nearly all material purchases qualify. For most cleaning companies, the resale certificate savings are a fraction of total supply costs.
When You Might Not Need a Resale Certificate at All
If your cleaning company does not sell any products to customers (no retail sales, no separate supply billing), you may not need a resale certificate. You still might need a sales tax registration if your state taxes cleaning services, but that is different from a resale certificate.
A resale certificate is for buying inventory you resell. If you do not resell anything, the certificate has no application.
State-Specific Notes
California
California janitorial services are generally not taxable. Cleaning supplies you consume during service are taxable purchases. If you sell cleaning products at retail, you need a seller's permit and can buy those specific items tax-free.
Texas
Texas taxes janitorial services. You need a sales tax permit and must collect tax on your service charges. Supplies you consume are taxable purchases. Products you sell separately to clients can be purchased tax-free with a resale certificate.
New York
New York taxes cleaning and maintenance services for commercial properties but generally does not tax residential cleaning. Supplies consumed during service are taxable purchases. Only products you separately sell to clients qualify for the resale exemption.
Florida
Florida taxes nonresidential cleaning, pest control, and janitorial services. Residential cleaning is generally not taxable. Cleaning supplies you consume are taxable purchases.
Common Mistakes Cleaning Companies Make
Using a Resale Certificate for All Supply Purchases
This is the biggest mistake. Buying your regular cleaning chemicals, paper towels, and trash bags with a resale certificate because "they are for the business" is incorrect. These items are consumed during service delivery. If audited, you will owe back taxes plus penalties and interest.
Confusing Sales Tax Registration With a Resale Certificate
If your state taxes cleaning services, you need to register for sales tax and collect it from customers. This registration is separate from a resale certificate. Many cleaning company owners confuse the two.
Not Knowing Whether Their State Taxes Services
Several states tax janitorial and cleaning services. If you operate in one of those states and are not collecting tax from your customers, you have a liability building up. Check your state's rules.
How to Get Started
If your cleaning company has legitimate resale activity (selling products to customers, restocking supplies under separate billing), here is how to proceed:
Step 1: Determine If You Have Resale Activity
Honestly evaluate whether you sell any products to customers. If the answer is no, a resale certificate may not benefit you. If yes, proceed.
Step 2: Apply for Your Certificate
Apply through your state's tax authority or use our application service.
Step 3: Use It Only for Legitimate Resale Purchases
Present the certificate only when buying items you will resell. Do not use it for your everyday cleaning supplies.
Step 4: Check If Your State Taxes Services
Separately determine whether you need to collect sales tax on your cleaning service invoices. If so, register and start collecting.
Apply for Your Resale Certificate