Does a part-time residential house cleaner owe Texas sales tax, or is she treated as the household's employee?

Plain-English summary

A man wrote to the Comptroller on behalf of his wife, who does part-time residential housekeeping — cleaning a few homes, charging by the hour, paid the full amount by the homeowners (nothing withheld), and using cleaning products and equipment furnished by the households. He'd gotten conflicting answers about whether she owed sales tax, and wanted written confirmation.

The Comptroller's answer: no sales tax.

• House-cleaning services performed by an individual who is not an employee of a janitorial service are not taxable.
• In the wife's case, for sales-tax purposes she is considered the employee of the people who hire her to clean their houses. Her earnings are treated more like wages, and wages are not subject to sales tax.

What this means for you

Individual house cleaners

If you clean homes on your own — not as an employee of a janitorial/cleaning company — your work is not subject to sales tax. Texas treats you, for sales-tax purposes, as the household's employee, so what you earn is treated like wages, which aren't taxed.

The janitorial-service distinction matters

The nontaxable treatment turns on not being an employee of a janitorial service. Cleaning provided through a janitorial or cleaning business can be a taxable service — the analysis here is specific to an individual hired directly by households.

Common questions

Q: Does an individual house cleaner owe Texas sales tax?
A: No. House-cleaning by an individual who is not an employee of a janitorial service is not taxable, and the cleaner is treated as the household's employee earning wages.

Q: Why are the earnings not taxable?
A: Because for sales-tax purposes the cleaner is considered the employee of the people who hire her, and her earnings are treated more like wages — which are not subject to sales tax.

Q: Would it be different if she worked for a cleaning company?
A: The nontaxable result rests on her not being an employee of a janitorial service. Cleaning provided through such a business can be treated differently.

Q: Can I rely on this 1988 letter today?
A: Treat it as guidance only. It is based on the facts presented and can change with different facts; on the STAR system it binds the Comptroller only as to the taxpayer it was issued to and may no longer reflect current policy.

Citations and references

Rules and statutes: The letter treats an individual residential house cleaner (not an employee of a janitorial service) as the household's employee earning nontaxable wages, but does not cite a specific Tax Code section or Comptroller rule by number.

Source

• STAR search: https://star.comptroller.texas.gov/search?doc_type_code=L&tax_type_code=SST
• Opinion: https://star.comptroller.texas.gov/view/8806L0904D10

Original ruling text

June 17, 1988

Dear Mr. **:

This is in reference to your letter of June 1, 1988, concerning the taxability
of the residential housekeeping work performed by your wife.

House cleaning services performed by an individual who is not an employee of a
janitorial service are not taxable. In your wife's case, for sales tax purposes
she is considered the employee of the persons who hire her to clean their
houses. Her earnings for her services are treated more like wages and as such
are not subject to sales tax.

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

Please feel free to contact me if you have additional questions. You may call
me at 1-800-531-5441 toll free from anywhere in Texas. The regular number is
512-463-4358. You may write me at Tax Correspondence, Comptroller of Public
Accounts.

Sincerely,

Burrell W. Lankford
Tax Correspondence

Comptroller of Public Accounts
Tax Policy Division
Capitol Station
Austin, Texas 78774

June 1, 1988

To Whom It May Concern:

I am writing to you to resolve a matter regarding tax policy. I have received
information both affirmative and negative as to whether I should be subject to
the payment of sales tax. I decided to get an answer first-hand and telephoned
the local number in San Antonio for the State Comptroller of Public Accounts. I
spoke with Colleen Olvera and stated my situation as follows: my wife works
part-time (2 days a week) doing residential housekeeping work. She charges her
4 jobs by the hour. The homeowners pay her the full amount each cleaning and do
not withhold any amounts from her check. The cleaning products and equipment
that she uses are furnished by the household she works for. The income earned
from this activity is recorded and provided to the IRS for income tax purposes.

After providing the sales tax representative with this information, she stated
that there had been many calls to get clarification on this policy. She went on
to say that their staff had just reviewed the new laws concerning the taxing
implications for situations similar to mine. She stated that the decision was
that I, and people with like circumstances, were not liable for sales tax.
However, she further mentioned that I should get a written document to that
effect to insure my compliance with the law. She gave me your address and said
this was where I could get such documentation. Please provide some type of
paperwork that I may keep with my records for future proof. I wish to thank you
in advance for your prompt attention in this matter.

Sincerely,