Sales tax on construction work in the US varies a lot by state. In many states, contractors pay sales tax when they buy materials and don't charge it on the finished job. In others, some services are taxable, or tax is charged on materials separately. Some states treat repair work differently from new construction.
What to do
- Check your state's department of revenue guidance for contractors.
- Decide whether your prices include tax on materials or show it separately, and state it clearly on your estimate.
- Keep receipts and exemption certificates for any tax-exempt work.
TakeoffYard lets you set a sales tax percentage per job, or leave it at zero if your pricing already covers it.
This guide is general information for estimating. It is not engineering, legal or tax advice. Check local codes and your inspector for your project.