Is individual house cleaning or maid service taxable in Texas, and does it matter whether you're an independent solo cleaner, a janitorial company, or hired by a builder for construction cleanup?

Plain-English summary

Someone asked about the taxability of cleaning services without specifying exactly what kind of cleaning business they run. Because the facts were unclear, the Comptroller addressed several possible scenarios:

• A solo individual cleaning private homes, with no employees, is treated as an employee of the household rather than a taxable service provider — no sales tax applies.
• Otherwise, cleaning residential or non-residential real property is a taxable real property service under 34 TAC Rule 3.356.
• If hired by a residential builder for "rough cleanup" (picking up job-site debris and hauling it off), that's a taxable waste removal service.
• If hired by a builder for "final cleanup" (cleaning the inside of a house before it's shown), that's a taxable building cleaning service.
• Exception: labor for real property services purchased by a contractor, developer, or homebuilder as part of building a new residential structure is not taxable — the cleaner may accept a valid exemption certificate from that contractor/developer/homebuilder claiming the exemption.

What this means for you

Solo, no-employee house cleaners

If you personally clean private homes with no employees of your own, you're treated as an employee of the household you clean for, not a taxable service provider — you don't need to collect sales tax.

Cleaning and janitorial businesses

Once you have employees or clean commercial/non-residential property, your cleaning services are taxable real property services under Rule 3.356. Collect tax accordingly.

Cleaners working for homebuilders

Rough cleanup (debris removal) and final cleanup (pre-showing cleaning) are both taxable — as waste removal and building cleaning services respectively — unless you're working for a contractor, developer, or homebuilder building a genuinely new residential structure, in which case you can accept an exemption certificate and skip the tax on your labor.

Accountants and tax professionals

This letter is a useful multi-scenario roadmap: the household-employee carve-out only applies to a true solo operator with no employees cleaning private residences; everything else (commercial cleaning, employee-based operations, construction-related cleanup) defaults to taxable real property services, with the sole additional exception being labor purchased as part of new residential construction.

Common questions

Q: Do I need to collect sales tax if I clean houses by myself with no employees?
A: No. You're considered an employee of the household rather than a taxable service provider.

Q: Is commercial janitorial cleaning taxable in Texas?
A: Yes, as a taxable real property service under 34 TAC Rule 3.356.

Q: Is post-construction cleanup for a homebuilder taxable?
A: Generally yes — rough cleanup is a taxable waste removal service and final cleanup is a taxable building cleaning service, unless the labor is purchased by a contractor/developer/homebuilder building a new residential structure, in which case a valid exemption certificate makes it exempt.

Q: Can I rely on this letter for my own cleaning business?
A: No. This opinion is based on the facts presented; additional or different facts may change the opinion.

Citations and references

Rules:

• 34 TAC Rule 3.356 (Real Property Services)

Source

• STAR search: https://star.comptroller.texas.gov/search?doc_type_code=L&tax_type_code=SST
• Opinion: https://star.comptroller.texas.gov/view/200005336L

Original ruling text

May 1, 2000

To: **

Subject: Sales Tax

Dear **:

I am responding to your e-mail of April 25, 2000 regarding the taxability of
cleaning services.

I could not determine if you are performing a janitorial service or if you were
hired by the builder of residential property to do rough cleanup or final
cleanup. I am addressing all scenarios for your information.

If you only clean residences for homeowners as an individual (you do not have
any employees etc.,) you are considered an employee of the household rather
than a person performing a taxable service. Otherwise, the services to clean
residential or non-residential real property are taxable real property
services. See Rule 3.356 relating to real property services.

If you are hired by the builder of residential property to do rough cleanup
(picking up debris around the job site and hauling it off) or final cleanup
(clean the inside of the house before it is shown), then you are performing
taxable services. Rough cleanup is a taxable waste removal service, and final
cleanup is a taxable building cleaning service.

There is an exception when working for a contractor building a new residential
structure. The labor to perform real property services are not taxable if
purchased by a contractor, developer, or homebuilder as part of the improvement
of real property with a new residential structure. You may accept a valid
exemption certificate from a contractor, developer, or homebuilder claiming the
exemption on the labor

You may view or download a copy of the referenced rule at:
http://www.window.state.tx.us/taxinfo/rulendx/rulelist3.html#sst.

This opinion is based on the facts presented. If there are additional or
different facts, the opinion may change.

If I can be of further assistance, please call me at 1-800-531-5441, extension
5-9913. You may also write to Tax Policy Division, Comptroller of Public
Accounts, P.O. Box 13528, Austin, TX 78711-3825. The e-mail address is
[email protected].

Sincerely,

Elias Amaya
Tax Policy Division