Cleaning commercial and industrial buildings in Maryland often involves navigating sales and use tax regulations. This guide clarifies which Cleaning Services are subject to Maryland’s 6% sales and use tax.
Taxable Cleaning Services in Maryland
Maryland levies a 6% sales and use tax on cleaning services for commercial and industrial buildings. This includes janitorial services, floor cleaning, carpet cleaning, wall cleaning, window cleaning, ceiling cleaning, and exterior building cleaning.
A commercial or industrial building is defined as any structure or portion of a structure used for purposes other than a permanent private residence. Examples include:
- Apartment buildings (excluding the interior of individually occupied apartments)
- Model homes
- Hotels and motels
- Rental condominiums
- Retail spaces in retirement communities
- Residential condominiums under common ownership
- Medical facilities
- Office trailers
- Parking garages
- Daycare centers
- Private clubs
- Shopping centers
Condominium buildings in resort areas are generally presumed to be commercial. Cleaning service providers must document that individual units are permanent private residences to avoid the tax. Acceptable documentation includes a signed statement from the owner or a statement on the invoice specifying the unit’s use as a permanent residence.
Examples of Taxable and Non-Taxable Cleaning Services
Taxable cleaning services:
- Restroom maintenance
- Sanitizing, deodorizing, and disinfecting
- Furniture dusting and polishing
- Interior trash collection
- Floor care, including carpet cleaning
- Power washing, sandblasting, and chemical cleaning
- Construction cleanup
- Fire and flood cleanup (including debris removal, soot removal, smoke and odor removal, and water extraction performed with other cleaning services, excluding reconstruction charges). Emergency water extraction services not part of other cleaning are not taxed.
Non-taxable cleaning service: Heating, ventilation, and air conditioning (HVAC) cleaning.
Cleaning Services in Common Ownership and Retirement Communities
Cleaning services for common areas in common ownership or retirement communities are exempt from sales and use tax. This includes areas used for:
- Classrooms
- Dining
- Exercise facilities
- Food preparation and cooking
- Meeting rooms
- Management offices
- Recreation areas
- Security
- Sports facilities
- Storage
However, cleaning services for retail spaces or other areas within these communities that generate sales tax revenue are taxable.
Tax Collection for Landlords
Landlords of commercial and industrial properties are not required to collect tax on lump-sum rental charges that include janitorial services. They should pay the tax on cleaning services purchased from third-party providers. If landlords charge separately for janitorial services, the tax applies. However, a resale exemption may apply if these services are purchased from a third party.
Registration for Cleaning Service Providers
Cleaning service providers not registered to collect sales and use tax can register for a license online through Maryland TaxConnect. This guide provides a general overview of cleaning service taxation in Maryland. For specific situations or further clarification, consult with a tax professional or contact the Comptroller of Maryland.
