Question 1

Do contractors charge sales tax in California?

Accepted Answer

In California a contractor is treated as the CONSUMER of the materials they build into real property. That means the contractor pays sales tax when they buy the materials, and does not add sales tax to the customer's invoice for that work — the tax is already inside the price. California also has county, city or special-district rates on top of the state rate, so the rate depends on where the job site is, not where the contractor is based. Source: Cal. Code Regs. tit. 18, §1521 (construction contractors are the consumers of materials; retailers of fixtures they furnish and install).

Question 2

Do contractors charge sales tax in Texas?

Accepted Answer

In Texas it depends on how the contract is written. Under a lump-sum contract the contractor is the CONSUMER of the materials and charges the customer no sales tax. Under a separated or time-and-materials contract the contractor is a RETAILER of the materials and must charge the customer sales tax on them. Texas also has county, city or special-district rates on top of the state rate, so the rate depends on where the job site is, not where the contractor is based. Source: 34 Tex. Admin. Code §3.291 (Contractors) and §3.357 (Nonresidential real property repair, remodeling and restoration).

Question 3

Do contractors charge sales tax in Florida?

Accepted Answer

In Florida a contractor is treated as the CONSUMER of the materials they build into real property. That means the contractor pays sales tax when they buy the materials, and does not add sales tax to the customer's invoice for that work — the tax is already inside the price. Florida also has county, city or special-district rates on top of the state rate, so the rate depends on where the job site is, not where the contractor is based. Source: Fla. Admin. Code r. 12A-1.051 (sales to or by contractors who repair, alter, improve and construct real property).

Question 4

Do contractors charge sales tax in New York?

Accepted Answer

In New York a contractor is treated as the CONSUMER of the materials they build into real property. That means the contractor pays sales tax when they buy the materials, and does not add sales tax to the customer's invoice for that work — the tax is already inside the price. New York also has county, city or special-district rates on top of the state rate, so the rate depends on where the job site is, not where the contractor is based. Source: N.Y. Tax Law §1105(c)(3),(5); Publication 862; TB-ST-104 (Capital Improvements) and TB-ST-129 (Contractors — Repair, Maintenance and Installation Services to Real Property).

Question 5

Do contractors charge sales tax in Pennsylvania?

Accepted Answer

In Pennsylvania a contractor is treated as the CONSUMER of the materials they build into real property. That means the contractor pays sales tax when they buy the materials, and does not add sales tax to the customer's invoice for that work — the tax is already inside the price. Pennsylvania also has county, city or special-district rates on top of the state rate, so the rate depends on where the job site is, not where the contractor is based. Source: 61 Pa. Code §31.5; 72 P.S. §7201(k)(14) (construction contractors are the ultimate consumers of materials; building maintenance and cleaning services are separately taxable).

Question 6

Do contractors charge sales tax in Illinois?

Accepted Answer

In Illinois a contractor is treated as the CONSUMER of the materials they build into real property. That means the contractor pays sales tax when they buy the materials, and does not add sales tax to the customer's invoice for that work — the tax is already inside the price. Illinois also has county, city or special-district rates on top of the state rate, so the rate depends on where the job site is, not where the contractor is based. Source: 86 Ill. Adm. Code 130.1940 (construction contractors incur Use Tax on materials permanently affixed to real estate).

Question 7

Do contractors charge sales tax in Ohio?

Accepted Answer

In Ohio a contractor is treated as the CONSUMER of the materials they build into real property. That means the contractor pays sales tax when they buy the materials, and does not add sales tax to the customer's invoice for that work — the tax is already inside the price. Ohio also has county, city or special-district rates on top of the state rate, so the rate depends on where the job site is, not where the contractor is based. Source: Ohio Rev. Code §5739.01(B)(3); §5739.02 (building maintenance and janitorial service is a taxable service; real property construction contractors are consumers of materials).

Question 8

Do contractors charge sales tax in Georgia?

Accepted Answer

In Georgia a contractor is treated as the CONSUMER of the materials they build into real property. That means the contractor pays sales tax when they buy the materials, and does not add sales tax to the customer's invoice for that work — the tax is already inside the price. Georgia also has county, city or special-district rates on top of the state rate, so the rate depends on where the job site is, not where the contractor is based. Source: Ga. Comp. R. & Regs. 560-12-2-.26 (contractors are the consumers of tangible personal property furnished to and installed in real property).

State	How the contractor is treated	Source
Alabama	Consumer of materials	Ala. Admin. Code r. 810-6-1-.46 (contractors are the consumers of materials they incorporate into realty).
Alaska	No state tax — local rates apply	No Alaska state sales tax. Boroughs and municipalities levy their own under AS 29.45.650.
Arizona	Gross receipts (Transaction Privilege Tax)	A.R.S. §42-5075 (prime contracting classification); A.R.S. §42-5074 / MRRA treatment for maintenance, repair, replacement and alteration.
Arkansas	Consumer of materials	Ark. Code §26-52-301(3) (services taxed, including repair and maintenance of nonmechanical, passive or manually operated components of buildings).
California	Consumer of materials	Cal. Code Regs. tit. 18, §1521 (construction contractors are the consumers of materials; retailers of fixtures they furnish and install).
Colorado	Depends on the contract	Colorado DOR Sales 6, "Contractors and Retailer-Contractors" (consumer on lump-sum; retailer on time-and-materials).
Connecticut	Consumer of materials	Conn. Gen. Stat. §12-407(a)(37)(I) (services to industrial, commercial or income-producing real property are taxable).
Delaware	No sales tax	Delaware imposes no sales tax. A contractor instead pays gross receipts tax on their own receipts (Del. Code tit. 30, §2502) — a tax on the contractor, never a charge to the customer.
District of Columbia	Consumer of materials	D.C. Code §47-2001(n)(1) (retail sale definition); real property construction contractors are consumers of materials.
Florida	Consumer of materials	Fla. Admin. Code r. 12A-1.051 (sales to or by contractors who repair, alter, improve and construct real property).
Georgia	Consumer of materials	Ga. Comp. R. & Regs. 560-12-2-.26 (contractors are the consumers of tangible personal property furnished to and installed in real property).
Hawaii	Gross receipts (General Excise Tax)	Haw. Rev. Stat. ch. 237 (General Excise Tax — levied on the business's gross income, contracting included, not on the customer).
Idaho	Consumer of materials	Idaho Code §63-3609; IDAPA 35.01.02.012 (contractors improving real property are the consumers of the materials).
Illinois	Consumer of materials	86 Ill. Adm. Code 130.1940 (construction contractors incur Use Tax on materials permanently affixed to real estate).
Indiana	Depends on the contract	Ind. Code §6-2.5-4-9; 45 IAC 2.2-3-9 (lump-sum contractor is the consumer; time-and-material contractor is a retail merchant as to the materials).
Iowa	Consumer of materials	Iowa Code §423.2(6); Iowa Admin. Code r. 701-219 (enumerated services include carpentry, electrical and electronic repair, plumbing, painting and roof/siding/window installation and repair).
Kansas	Consumer of materials	K.S.A. 79-3603(p),(q) (services of installing or applying tangible personal property, and services to repair, service, alter or maintain real property).
Kentucky	Consumer of materials	KRS 139.010, 139.200 (contractors are the consumers of materials; the enumerated taxable services list has been expanded repeatedly since 2018).
Louisiana	Consumer of materials	La. R.S. 47:301(14)(g) (repairs to tangible personal property are taxable services; immovable-property construction is not).
Maine	Consumer of materials	36 M.R.S. §1752 (contractors are the consumers of materials incorporated into real property).
Maryland	Consumer of materials	Md. Code Tax-Gen. §11-101; Md. Code Regs. 03.06.01.19 (a contractor is the consumer of materials used to improve real property).
Massachusetts	Consumer of materials	830 CMR 64H.6.7 (out-of-state and in-state contractors are the consumers of materials used in construction).
Michigan	Consumer of materials	MCL 205.51 et seq.; Mich. Admin. Code R 205.71 (a contractor affixing property to realty is the consumer of that property).
Minnesota	Consumer of materials	Minn. Stat. §297A.61 subd. 3(g) (taxable services); contractors improving real property are the end users of the materials.
Mississippi	Gross receipts (Contractor's Tax)	Miss. Code §27-65-21 (contractor's tax on commercial construction contracts exceeding $10,000).
Missouri	Consumer of materials	Mo. Rev. Stat. §144.020; 12 CSR 10-112.010 (contractors are the final users of materials incorporated into real property).
Montana	No sales tax	Montana imposes no general sales tax (limited resort and local option taxes exist in a few communities).
Nebraska	Depends on the contract	Neb. Rev. Stat. §77-2701.16; Neb. Admin. Code tit. 316 ch. 1 §017 (contractor Option 1, 2 or 3 election).
Nevada	Consumer of materials	NRS 372.050; NAC 372.200 (construction contractors are the consumers of materials they furnish and install).
New Hampshire	No sales tax	New Hampshire imposes no general sales tax.
New Jersey	Consumer of materials	N.J.S.A. 54:32B-3(b)(4); Tax Topic Bulletin S&U-2, "Sales Tax and Home Improvements".
New Mexico	Gross receipts (Gross Receipts Tax)	NMSA 1978 §7-9-4 (gross receipts tax on receipts from performing services and selling property in New Mexico).
New York	Consumer of materials	N.Y. Tax Law §1105(c)(3),(5); Publication 862; TB-ST-104 (Capital Improvements) and TB-ST-129 (Contractors — Repair, Maintenance and Installation Services to Real Property).
North Carolina	Consumer of materials	N.C. Gen. Stat. §105-164.4(a)(16) and §105-164.4H (repair, maintenance and installation services; real property contracts).
North Dakota	Consumer of materials	N.D.C.C. §57-39.2-04; contractors are the consumers of materials used in real property improvement.
Ohio	Consumer of materials	Ohio Rev. Code §5739.01(B)(3); §5739.02 (building maintenance and janitorial service is a taxable service; real property construction contractors are consumers of materials).
Oklahoma	Consumer of materials	Okla. Stat. tit. 68 §1354; OAC 710:65-19-14 (contractors are the consumers of materials furnished and installed).
Oregon	No sales tax	Oregon imposes no general sales tax.
Pennsylvania	Consumer of materials	61 Pa. Code §31.5; 72 P.S. §7201(k)(14) (construction contractors are the ultimate consumers of materials; building maintenance and cleaning services are separately taxable).
Rhode Island	Consumer of materials	R.I. Gen. Laws §44-18-18; contractors are the consumers of materials incorporated into realty.
South Carolina	Consumer of materials	S.C. Code §12-36-910; S.C. Rev. Rul. and Reg. 117-314 (contractors are the users of materials used to improve real property).
South Dakota	Consumer of materials	SDCL ch. 10-46A (contractor's excise tax on realty improvement contracts) and ch. 10-45 (sales tax).
Tennessee	Consumer of materials	Tenn. Code §67-6-102; Tenn. Comp. R. & Regs. 1320-05-01-.27 (contractors are the consumers of materials used in realty improvement; installation and repair of tangible personal property is taxable).
Texas	Depends on the contract	34 Tex. Admin. Code §3.291 (Contractors) and §3.357 (Nonresidential real property repair, remodeling and restoration).
Utah	Consumer of materials	Utah Code §59-12-103; Utah Admin. Code R865-19S-58 (real property contractors are the consumers of materials converted to real property).
Vermont	Consumer of materials	32 V.S.A. §9701 et seq.; contractors are the consumers of materials incorporated into real property.
Virginia	Consumer of materials	Va. Code §58.1-610; 23 VAC 10-210-410 (a contractor with respect to real property is the consumer of all materials furnished and installed).
Washington	Retailer	RCW 82.04.050(2)(b); WAC 458-20-170 (constructing, repairing or improving real property for a consumer is a retail sale).
West Virginia	Consumer of materials	W. Va. Code §11-15-8; §11-15-2(b)(9) (contracting services are taxable, except work resulting in a capital improvement to real property).
Wisconsin	Consumer of materials	Wis. Stat. §77.52(2)(a); Wis. Admin. Code Tax 11.68 (construction contractors are the consumers of materials used in real property construction).
Wyoming	Consumer of materials	Wyo. Stat. §39-15-103 (services for the repair, alteration or improvement of tangible personal property are taxable; real property contractors are the consumers of materials).

Do contractors charge sales tax?

How the contractor is treated, state by state

The answer in full, for the biggest rental markets