Is Housekeeping Taxable in Texas?
If you are either a housekeeper or run a housekeeping business in Texas, you must obtain information about Texas' sales tax. One of the major questions facing most people is whether housekeeping services are subject to tax implications in the Lone Star State. This article will give you an in-depth overview of the taxability status of housekeeping services in Texas, just so you may maintain compliance with the state laws.
Understanding Taxable Housekeeping Services
Most housekeeping and cleaning services performed on real property in Texas are taxable. As a housekeeper, you are responsible for collecting the state sales tax from your customers and passing it on to the state. Examples of taxable housekeeping services include house cleaning and straightening; washing windows, floors, walls, and ceilings; cleaning chimneys or air ducts; replacing light bulbs or fuses; and picking up trash inside or outside a home, office, or commercial building.
Sales Tax Rate Applied to Housekeeping Services
The current Texas sales tax rate is 6.25%. In addition to your service charges, you have to add this tax to your charges as a housekeeping service provider and itemize it on the invoice provided to the clients. This means that a housekeeping service such as cleaning that costs $100 would incorporate an addition of $6.25 in sales tax, making it $106.25.
Reporting All Housekeeping IncomeWhether you are an employee or a self-employed individual and whether you earn a little or a lot, you must report all your income from housekeeping services. You must also report cash payments you receive. Under-reporting income or failing to pay tax on cash wages may be considered serious issues, even fraud, and can be punishable by heavy fines, even imprisonment.
Housekeeping Business Deductions
If you are self-employed or run a housekeeping business like Austin Cleaning Services, you may be able to deduct some of the expenses against your taxable income. These deductions reduce your overall tax liability and include things such as:
Uniforms, aprons, and gloves required and their cost to maintain for work
Insurance, bonding, or licensing
Cleaning solutions and equipment
Gas or mileage to and from work
Housekeeping Services Exemptions
Sometimes, Texas may exempt the housekeeping services from a sales tax. Suppose you offer your services to any governmental agency or a nonprofit organization; you will be exempted from keeping sales tax. You have to confirm the status of the exemption for your clients.
Record Keeping
For Texas sales tax compliance, you must maintain records that separate each taxable and nontaxable service you sell. If you cannot tell what part of your charge is subject to tax and what part is not, you may be required to pay sales tax on your total receipts.
Conclusion
Most of the housekeeping services provided in Texas are subjected to sales tax, for which the service provider has to collect and remit the same to the state. For instance, by knowing whether your service is taxable, maintaining good records, and utilizing the deductions available to you, you may keep your housekeeping business in good standing with Texas tax laws Austin Cleaning Services, or anything else.
