If you operate a maid service, housekeeping service, or any business offering cleaning services for homes or commercial properties in Texas, it’s crucial to understand your obligations regarding sales and use tax. This guide clarifies the Texas tax regulations for Maid Housekeeping Services to ensure compliance and avoid potential issues. You can also request a sales tax permit online if needed.
Tax Collection Requirements for Housekeeping Services
As a provider of maid and housekeeping services, you are generally required to collect both state and local sales taxes on the total amount you charge for your services. This includes city, county, special purpose district, and transit taxes, in addition to the state sales tax.
Examples of Taxable Maid Housekeeping Services
Texas considers a wide range of cleaning and maintenance services as taxable when provided by a maid or housekeeping service. These services extend to various settings, including homes, offices, warehouses, garages, restaurants, and other buildings, as well as swimming pools. Here are some examples of services subject to sales tax:
- General Cleaning: This encompasses tasks like dusting, vacuuming, sweeping, mopping, and tidying up spaces.
- Floor, Wall, and Ceiling Cleaning: Washing and cleaning these surfaces, including stain removal and polishing.
- Window Cleaning: Interior and exterior window washing for residential and commercial buildings.
- Chimney and Air Duct Cleaning: Removing soot and debris from chimneys and improving air quality through duct cleaning.
- Light Bulb and Fuse Replacement: Changing light bulbs and fuses as part of a general cleaning or maintenance service.
- Trash Removal: Collecting and disposing of trash from both indoor and outdoor areas of a property.
- Swimming Pool Maintenance: Comprehensive pool care including cleaning, chemical balancing, and equipment maintenance.
- Minor HVAC Maintenance: Simple maintenance like cleaning or changing filters in heating and air conditioning systems when performed as part of a broader cleaning service.
- Nonresidential Building Repairs and Remodeling: Services like painting and wallpapering in offices or commercial spaces are also taxable, covering both labor and materials.
- Pressure Washing: Cleaning buildings, sidewalks, and parking lots using pressure washing techniques is considered taxable as building or grounds cleaning. This also extends to pressure washing tangible personal property, classified as restoration or maintenance.
Examples of Nontaxable Housekeeping Services
It’s important to note that there are exceptions. Specifically, traditional household services provided by a self-employed individual directly employed by a household are not subject to sales tax. This distinction is critical:
- Direct Household Employee Exemption: If a person is hired directly by a homeowner as a household employee for services like general housekeeping, babysitting, or cooking, these services are not taxable. The key here is the direct employer-employee relationship with the household, not through a third-party service.
- Subcontractor vs. Employee: This exemption does not apply if the individual is a subcontractor working for a maid service or any third-party company. In such cases, the services are taxable.
- Other Real Property Services: Even for self-employed individuals working directly for homeowners, services like landscaping or pool cleaning are still considered taxable real property services. The exemption is very narrowly defined around traditional household services in an employer-employee relationship.
- New Residential Construction: Building maintenance and groundskeeping services related to the construction of new residential structures or improvements classified as new construction may also be nontaxable when purchased by contractors or home builders.
Materials, Supplies, and Equipment for Maid Services
Understanding tax obligations extends to the supplies and equipment you use in your maid service:
- Taxable Purchases: You are required to pay sales tax on all cleaning supplies, chemicals, materials, and equipment you purchase for your business operations.
- Resale Certificates for Transferred Goods: You can use a resale certificate to purchase certain goods tax-free from your suppliers if these goods are directly transferred to your customer as part of a taxable service. Examples include furniture polish, wax, toilet paper, paper towels, and hand soap that are left at the customer’s location for their ongoing use.
- Tax on Supplies for Nontaxable Services: If you are providing a service that is considered nontaxable, you still must pay sales tax on the cleaning supplies and materials used to perform that service.
Reselling Housekeeping Services
The rules also cover situations where you might subcontract cleaning work:
- Subcontracting: If you hire a third party, such as another maid service, to perform cleaning services for your clients, you can provide the subcontractor with a resale certificate. This means you won’t pay sales tax to the subcontractor.
- Tax Collection from Your Customer: However, you are then obligated to collect sales tax from your customer on the total charge you bill them, including the portion of the service performed by the subcontractor.
Need Further Clarification?
For more detailed information and specific scenarios, refer to Rule 3.356 – Real Property Services from the Texas Comptroller’s office. This rule provides comprehensive guidance on real property services and sales tax regulations in Texas.
This information is based on publication 94-111 (10/2006) from the Texas Comptroller of Public Accounts. Always consult with a tax professional or the Texas Comptroller’s office for the most up-to-date information and advice specific to your business.
