Resale Certificates for Screen Printers: Buy Blank Apparel and Supplies Tax-Free

Screen printing and embroidery shops sit at the intersection of manufacturing and retail. You purchase blank apparel, apply your decoration process, and sell a finished custom product. That makes you a manufacturer-reseller, and it means a resale certificate can eliminate sales tax on a significant portion of your material costs.

For a shop spending $5,000 per month on blank shirts, hoodies, and consumable supplies, a 7% sales tax rate translates to $4,200 per year in unnecessary tax. That is money that should be staying in your business.

Screen Printing Supplies

How Screen Printers Qualify

The tax logic is simple. Blank apparel and consumable materials that become part of the finished product you sell are purchased for resale. You are not the end consumer of those Gildan 5000s sitting on your shelf. Your customer is.

This principle extends beyond just the blanks. Ink, transfer paper, thread (for embroidery), and other materials that are physically incorporated into the finished garment also qualify. The key distinction: materials that become part of the product versus equipment you use to make the product.

Apply for Your Resale Certificate

What You Can Buy Tax-Free

Blank Apparel (All Exempt)

Every blank garment you purchase for decoration and resale qualifies:

• T-shirts: Gildan 5000, Bella+Canvas 3001, Next Level 6210, Comfort Colors 1717
• Hoodies and sweatshirts: Gildan 18500, Independent Trading Co. SS4500, Champion S700
• Hats and caps: Richardson 112, Yupoong 6089, Pacific Headwear
• Polo shirts: Jerzees 437, Port Authority K500
• Tank tops, long sleeves, crewnecks, quarter-zips
• Jackets and outerwear purchased for decoration
• Tote bags, aprons, towels, and other imprintable goods

Consumable Supplies (Incorporated Into the Product)

Materials that become part of the finished garment:

Packaging That Transfers to the Customer

Items that go to the customer with the product:

• Poly bags for individual garment packaging
• Tissue paper used in packaging
• Boxes you ship orders in
• Branded stickers and inserts included with orders
• Hang tags attached to garments

Note: Packaging rules vary by state. Most states exempt packaging materials that transfer to the buyer, but a few states tax certain packaging. Check your state's specific rules.

What You CANNOT Buy Tax-Free

This is where shop owners make expensive mistakes. Equipment and durable supplies used in your production process do not qualify for the resale exemption, even though they are essential to your business.

Production Equipment (Taxable)

Reusable Supplies (Taxable)

The line is clear: if the material physically ends up in or on the finished garment the customer receives, it is exempt. If it is used up during production but does not become part of the product, it is taxable.

A Note on Emulsion and Screens

Emulsion is a common point of confusion. You coat screens with emulsion, expose your design, then wash out the stencil. The emulsion stays on the screen, not on the shirt. It is a production consumable, not a resale item. The same logic applies to screen degreaser, haze remover, and reclaiming chemicals.

Major Blank Apparel Suppliers

These are the primary distributors serving the decorated apparel industry. All require a resale certificate to open a wholesale account.

SanMar

The largest blank apparel distributor in the United States. SanMar carries Gildan, Hanes, Port Authority, District, Next Level, Comfort Colors, Nike, and dozens more brands.

• Account setup: Apply at sanmar.com. Resale certificate required.
• Minimums: No minimum order. Free freight on orders over $200 (varies by location).
• Perks: Massive inventory, excellent fill rates, multiple warehouse locations for fast shipping.

S&S Activewear

Second largest distributor. Strong on fashion-forward brands like Bella+Canvas, Independent Trading Company, and Alternative Apparel.

• Account setup: Apply at ssactivewear.com with your resale certificate.
• Minimums: No case pack requirements on most items.
• Perks: Often has lower pricing on premium brands. Good selection of retail-quality blanks.

alphabroder (formerly Alpha Broder)

Major distributor carrying a wide range of brands. Strong in corporate and uniform apparel.

• Account setup: Apply at alphabroder.com with your resale certificate.
• Minimums: Varies by brand and item.
• Perks: Deep inventory in workwear and corporate styles.

Other Notable Suppliers

Ink and Supply Distributors

When ordering from these suppliers, provide your resale certificate for ink and consumable materials that get incorporated into your products. Pay tax on equipment, screens, and cleaning supplies.

Contract Printing vs. Direct Sales

Your tax obligations change depending on who you are printing for.

Contract Printing (B2B)

When another business hires you to print their shirts, you are providing a service to a reseller. The other business will give you their resale certificate, and the transaction is tax-exempt. You do not collect sales tax because the shirts are not going to the end consumer; they are going to another business for resale.

Example: A local brewery hires you to print 500 branded t-shirts they will sell in their taproom. The brewery provides their resale certificate. You do not charge sales tax on the order.

Direct-to-Consumer Sales

When you sell finished printed goods directly to the public (through your website, at events, or in a retail space), you collect sales tax from the buyer.

Example: You print and sell 200 shirts for a local 5K race directly to race participants. You collect sales tax on each shirt sold.

The Mixed Order

Many shops handle both. A customer orders 100 shirts for their company store (resale, certificate on file) and 25 shirts for their staff to wear at a trade show (not for resale, taxable). You need to separate these on the invoice.

How to Present Your Certificate to Suppliers

When opening a wholesale account with SanMar, S&S Activewear, or any other supplier:

1. During account creation: Most online applications have a field to upload your resale certificate. Do this during setup so all future orders are tax-exempt.
2. For existing accounts: If you have been paying tax, contact the supplier's customer service to add your certificate to your account. Most will apply it going forward (but will not refund previously paid tax).
3. For one-time purchases: Some suppliers accept certificates at the time of purchase for walk-in or phone orders.

Keep a digital copy of your certificate readily available. A scanned PDF on your phone saves time.

Sales Tax on Custom Printing Services

A question that comes up frequently: is the printing service itself taxable, or just the shirt?

In most states, the answer is that the total charge for a custom printed garment is taxable when sold to the end consumer. This includes the blank cost, the printing/decoration cost, and the setup fees. States generally view the finished product as a single taxable item.

Some states break it down differently:

• Fabrication labor (the act of printing) may be taxable or exempt depending on the state
• Setup charges and art fees are sometimes treated separately from the product sale
• Rush fees and special handling are generally taxable as part of the total

When in doubt, tax the total invoice amount to the end consumer. Undertaxing leads to audit liability.

Real Savings for a Screen Printing Shop

Here is what a mid-size shop saves annually:

A smaller shop spending $2,000 per month on blanks still saves $1,680 per year. For a startup, that covers a few months of ink and supplies.

Common Mistakes in the Screen Printing Industry

Mistake 1: Using the Certificate for Equipment Purchases

Your $15,000 automatic press is not a resale item. Neither is your $3,000 heat press. These are capital equipment. Pay the tax or explore your state's manufacturing equipment exemption (some states offer a separate exemption for equipment used in manufacturing).

Mistake 2: Not Separating Resale and Non-Resale Purchases

When ordering from Ryonet, your cart might include plastisol ink (exempt) and a new squeegee (taxable). If you apply your certificate to the entire order, you are over-claiming the exemption. Separate taxable and exempt items, or pay tax on the non-exempt items.

Mistake 3: Failing to Collect Tax on Direct Sales

At community events, pop-up shops, or through your website, you must collect sales tax on direct-to-consumer sales. Your resale certificate exempts your purchases, not your customer's purchases from you.

Mistake 4: Not Getting Certificates From Contract Clients

When printing for other businesses who are reselling the shirts, collect their resale certificate. Without it, you are on the hook for sales tax on the transaction if you get audited.

Getting Started

1. Apply for your resale certificate through your state or via our application service.
2. Open accounts with SanMar, S&S Activewear, and your preferred ink suppliers. Upload your certificate during registration.
3. Audit your current suppliers to make sure your certificate is on file everywhere you buy.
4. Review your invoicing to ensure you are collecting sales tax properly from end consumers and accepting certificates from reseller clients.

Apply for Your Resale Certificate

Related Articles

• Resale Certificates for Clothing and Fashion Businesses
• What Can You Buy Tax-Free With a Resale Certificate?
• Resale Certificate Mistakes That Can Trigger a Sales Tax Audit