Resale Certificates for Furniture Stores: Buy Inventory and Materials Tax-Free
Furniture is a high-ticket category. A single dining room set can cost $2,000 to $8,000 wholesale. A custom piece might require $500 to $3,000 in raw lumber, hardware, and finishing materials. Without a resale certificate, you are paying sales tax on every one of those purchases, and at rates that can exceed 8% or more in many locations, that adds up fast.
A resale certificate eliminates sales tax on inventory purchases and raw materials that become part of products you sell. For furniture retailers, antique dealers, and custom furniture makers, this translates to thousands of dollars in annual savings.
Who This Guide Is For
This guide covers resale certificate usage for three distinct segments of the furniture industry:
Furniture retailers who buy finished furniture from manufacturers, distributors, or wholesalers and sell to consumers through showrooms, online stores, or both.
Antique dealers who source furniture at estate sales, auctions, flea markets, and from private sellers, then resell through shops, shows, or online platforms.
Custom furniture makers who purchase raw wood, hardware, upholstery fabric, finishing products, and other materials to build furniture made to order.
Each segment has slightly different considerations for what qualifies as a tax-exempt purchase.
What You Can Buy Tax-Free
Furniture Retailers: Inventory Purchases
Everything you buy for resale qualifies. This is straightforward for retailers purchasing finished goods.
| Purchase | Tax-Exempt? |
|---|---|
| Finished furniture from manufacturers/wholesalers | Yes |
| Mattresses and bedding bought for resale | Yes |
| Home decor items (lamps, rugs, mirrors) for resale | Yes |
| Packaging materials that transfer to the customer (boxes, wrapping) | Yes |
| Delivery materials (furniture blankets, shrink wrap) retained by business | No |
| Showroom display furniture (your own use) | Depends (see below) |
| Office furniture and equipment | No |
| Cleaning supplies | No |
The showroom display question: If display furniture is eventually sold to a customer, it qualifies for the resale exemption when originally purchased. If you designate certain pieces as permanent fixtures that will never be sold, those are taxable business-use purchases. Most furniture stores rotate their floor models into sales inventory, so the resale exemption typically applies.
Antique Dealers: Sourcing Inventory
Antique dealers face a unique situation because many sources (estate sales, private individuals, garage sales) do not charge sales tax in the first place. The resale certificate becomes critical when buying from sources that do charge tax.
| Source | Resale Certificate Needed? |
|---|---|
| Wholesale antique dealers/distributors | Yes, provide your certificate |
| Auction houses | Yes, most require a certificate for tax-exempt bidding |
| Estate sale companies | Sometimes (varies by company and state) |
| Private sellers (individuals) | Generally not needed (individuals rarely charge sales tax) |
| Online marketplaces (eBay, Chairish, 1stDibs) | Yes, register your certificate with the platform |
| Flea markets and antique shows | Yes, provide to vendors who charge tax |
Restoration supplies for antique furniture (wood glue, stains, replacement hardware, upholstery fabric) qualify for the resale exemption when those materials become part of the piece you sell. The finished restored piece is your retail product, and the materials are components of that product.
Custom Furniture Makers: Raw Materials
Custom furniture makers have the broadest range of exempt purchases because raw materials that become part of the finished product are exempt.
| Material | Tax-Exempt? |
|---|---|
| Lumber and plywood | Yes |
| Hardwood boards (walnut, oak, maple, cherry) | Yes |
| Veneer and laminate | Yes |
| Hardware (hinges, pulls, knobs, slides) | Yes |
| Wood glue and adhesives | Yes (becomes part of the product) |
| Stains, paints, and finishes | Yes (becomes part of the product) |
| Upholstery fabric and foam | Yes |
| Glass for tabletops or cabinet doors | Yes |
| Metal components (legs, brackets, frames) | Yes |
| Sandpaper and finishing pads | Depends on state (consumed vs. transferred) |
| Power tools and shop equipment | No (business equipment) |
| Dust collection systems | No (business equipment) |
| Shop rent and utilities | No (business expenses, not resale items) |
The general rule: if the material physically becomes part of the furniture you sell to a customer, it qualifies. If the material is consumed during production (like sandpaper) or is a tool you use, it typically does not qualify, though some states have manufacturing exemptions that may cover these items.
Setting Up Wholesale Accounts
A resale certificate opens the door to wholesale pricing and trade-only suppliers. Here is how to set up your accounts.
Furniture Wholesale Sources
| Source Type | Examples | What You Need |
|---|---|---|
| Manufacturer direct | Ashley Furniture, Bernhardt, Hooker, Ethan Allen trade programs | Resale certificate, business license, trade application |
| Wholesale furniture markets | High Point Market (NC), Las Vegas Market, Atlanta Market | Trade credentials, resale certificate |
| Regional distributors | Local and regional furniture distributors | Resale certificate, credit application |
| Online wholesale | Wayfair Professional, Alibaba, direct manufacturer sites | Resale certificate uploaded to account |
| Lumber yards (custom makers) | Local hardwood dealers, Woodcraft, Bell Forest Products | Resale certificate on file |
High Point Furniture Market
The High Point Market in North Carolina is the world's largest home furnishings trade show, held twice per year (April and October). Over 2,000 exhibitors display across 180+ buildings.
To attend as a buyer, you need:
- Business credentials (business license, resale certificate, or sales tax permit)
- Proof of involvement in the furniture industry
- Pre-registration through the High Point Market Authority
Having your resale certificate ready ensures you can place tax-exempt orders at the show. Many manufacturers will open wholesale accounts on-site with proper documentation.
Delivery, Assembly, and Installation
Furniture retailers often provide delivery, assembly, and installation services. The tax treatment of these services varies by state.
Delivery Charges
- California: Delivery is generally not taxable if separately stated
- Texas: Delivery is taxable if the items delivered are taxable
- New York: Delivery is taxable
- Florida: Delivery is taxable if the goods are taxable
Assembly and Installation
In most states, charges for assembly or installation that are separately stated on the invoice may be exempt from sales tax (since they are considered labor, not a sale of tangible goods). However, if assembly is bundled into the price of the furniture, the entire amount may be taxable.
Best practice: Separately state delivery, assembly, and installation charges on your invoices. This protects you in states where these charges are exempt when itemized.
Collecting Sales Tax From Customers
You buy tax-free, but you collect sales tax on retail sales to your customers. The full retail price (including any taxable delivery or installation charges) is the taxable amount.
Example: Custom Furniture Sale
A customer orders a custom dining table for $4,500:
- Table: $4,500.00
- Delivery (taxable in this state): $150.00
- Assembly (separately stated, exempt): $0.00 tax
- Subtotal: $4,650.00
- Sales tax (7%): $325.50
- Total: $4,975.50
Your raw material cost for the table was $1,200. Without a resale certificate, you would have paid $84 in sales tax on those materials. Over 50 custom pieces per year, that is $4,200 in savings.
Tax-Exempt Customers
Some of your buyers may be tax-exempt:
- Interior designers buying for resale to their clients (they provide you their resale certificate)
- Hotels and hospitality companies with direct pay permits
- Government agencies with exemption documentation
- Other retailers purchasing for resale
Keep copies of all exemption certificates provided by your customers.
State-Specific Considerations
States With No Sales Tax
If you operate in Alaska, Delaware, Montana, New Hampshire, or Oregon, there is no state sales tax to worry about. However, some Alaska boroughs impose local sales taxes.
High-Rate States
In states with combined rates above 8% (California, Tennessee, Louisiana), the savings from a resale certificate are especially significant for high-ticket furniture purchases.
Nexus for Online Furniture Sellers
If you sell furniture online and ship to multiple states, you likely have economic nexus in states where your sales exceed the threshold (typically $100,000). You may need to register, collect tax, and potentially obtain resale certificates in those states for your inventory purchases. See our nexus guide for details.
Common Mistakes Furniture Businesses Make
Using the Certificate for Personal Purchases
Buying a couch for your own home through your business account and claiming resale is fraud. Keep personal and business purchases strictly separate.
Not Providing Certificates at Auctions
Auction houses charge sales tax unless you provide a resale certificate before or at the time of purchase. Many antique dealers forget this step and end up paying tax on inventory they intend to resell.
Confusing Display Items With Business Use
If you buy furniture intending to use it permanently in your showroom (a desk for your office, for example), that is a business-use purchase, not a resale purchase. Be honest about the intended use at the time of purchase.
Not Collecting Tax on Delivery
In states where delivery charges are taxable, failing to collect tax on delivery is a common audit finding. Check your state's rules and configure your invoicing system correctly.
Real Savings by Business Type
| Business Type | Annual Wholesale Spend | Annual Tax Savings (7%) |
|---|---|---|
| Small antique dealer | $30,000 | $2,100 |
| Custom furniture maker | $50,000 | $3,500 |
| Mid-size retail showroom | $200,000 | $14,000 |
| Multi-location retailer | $500,000+ | $35,000+ |
For a mid-size retail showroom spending $200,000 per year on wholesale furniture, $14,000 in annual tax savings is a meaningful addition to the bottom line.
Get Your Resale Certificate Today
Your resale certificate is the entry point for wholesale accounts, trade show access, and tax-free inventory purchasing. Stop paying retail tax on your inventory.
Apply for Your Resale Certificate
Related Articles
- What Can You Buy Tax-Free With a Resale Certificate? - Full breakdown of tax-exempt vs. taxable purchases.
- How to Set Up a Wholesale Business - Getting started with wholesale purchasing and distribution.
- Interior Designer Resale Certificate Guide - Interior designers buying furniture for clients have overlapping considerations.