Sales Tax for Contractors by State (2026): Materials, Labor or Neither on a Remodel
Whether you charge sales tax on a home remodel in all 50 states and DC, read from each state's revenue department, with a calculator and one $40,000 kitchen worked in six states.
Not tax advice. General information from each state's revenue department, checked Oct 29, 2026. Rates shown are the state rate; city and county tax is extra where it applies. The facts of your job and contract can change the answer; for a specific job, ask a tax professional in your state.
Tax collected, by quarter
Clamp's Sales Tax settings: the default rate on every new proposal and invoice, and the tax collected this quarter and this year. Demo data at Washington's 6.5% state rate; your rate includes local tax.
Look up your state
Tap a state or pick it from the list, then enter the job price and what the materials cost you. See what the customer pays in sales tax and what you pay on materials, at the state rate.
- You pay tax on materials; the customer pays none (35)
- Remodels untaxed, repairs taxed (6)
- Tax on the whole job, labor included (5)
- No state sales tax (5)
One $40,000 kitchen in six states
The same job, a $40,000 kitchen remodel with $15,000 of materials, at each state's 2026 state rate. City and county tax would add to each.
| State | How it works out | You pay on materials | Customer's tax |
|---|---|---|---|
| Texas | Customer pays none; you pay 6.25% on materials | $937.50 | $0 |
| New York | Remodel with an ST-124: none. Repair: 4% on the full bill | $600 | $0, or $1,600 as a repair |
| Arizona | Under 25% of the home's value: you pay 5.6% on materials | $840 | $0 |
| Washington | 6.5% on the full price, labor included | $0 | $2,600 |
| Hawaii | 4.5% general excise tax on the full price, on you. Suppliers add about 0.5% on materials | $0 | $1,800 |
| Oregon | No state sales tax | $0 | $0 |
In a materials state, the tax on materials is your cost, not the customer's line item. Put it in job cost and it's in the price. In New York, a repair bills $1,600 at the 4% state rate, and you can claim a credit for the tax you paid on materials that went to the customer.
The states that tax repairs, and the customer's form
Five states and DC split the work: a remodel or other capital improvement isn't taxed to the customer, but repairs and maintenance are. Where there's a form, the customer signs it and you keep it with the job.
District of Columbia
Remodeling and major repair aren't taxed to the customer; you pay tax on materials. Real property maintenance and minor repairs are taxable to the customer.
Iowa
Remodeling, alteration and addition labor is exempt and you pay tax on materials. Repair services on Iowa's taxable list are taxable to the homeowner.
New Jersey
Capital improvements are exempt with an ST-8, except floor covering, certain landscaping, hard-wired alarms and sign installation. Repairs are taxable; you pay tax on materials.
New York
On a capital improvement, get an ST-124, pay tax on materials and charge none. Repairs and maintenance are taxed on the full bill.
North Carolina
Remodels are capital improvements: you pay tax on materials and charge none. Repair, maintenance and installation services are taxable to the customer.
West Virginia
Capital improvements aren't taxed to the customer; you pay tax on materials. Repairs are taxed on labor and materials.
Where itemizing materials changes the answer
In most materials states the invoice format doesn't matter. In these, listing materials separately or billing time and materials makes you a retailer of the materials, and you collect tax on them from the customer.
| State | Lump sum | Itemized or time and materials |
|---|---|---|
| Indiana | You pay tax on materials; charge none | Time and materials: register and collect 7% on the materials |
| Texas | You pay tax on materials; charge none | Separated contract: collect tax on materials, not labor |
| Colorado | You pay tax on materials; charge none | Collect tax on the marked-up materials |
| Idaho | You pay tax on materials; charge none | Materials sold at an agreed price are a taxable sale |
| Rhode Island | You pay tax on materials; charge none | Materials at an agreed price plus labor: collect 7% on materials |
| Maine | You pay tax on materials; charge none | Only if you bill every customer for time, materials and tax |
| Nebraska | Option 1, the default: tax on the full price | Option 1 with labor stated separately: tax on materials only |
All 50 states and DC
The rule for remodeling an owner-occupied home in each state, the 2026 state rate, and the source we read. Tap a filter to see one group.
| State | Rule | What it means for a remodel | 2026 rate | Source |
|---|---|---|---|---|
| Alabama | Materials only | You pay tax on building materials that go into the home and charge the homeowner no sales tax. | 4% plus local | Ala. DOR, Who is a contractor? DOR guidance, undated |
| Alaska | No state sales tax | Alaska has no state sales tax. Check the city or borough where the job sits; some tax services. | No state sales tax; cities and boroughs can levy their own | Alaska Office of the State Assessor, Alaska Sales Tax Information State Assessor page, undated |
| Arizona | Materials only | A remodel priced at or under 25% of the home's full cash value is repair and alteration work: you pay tax on materials and bill none. Above 25%, or new construction, the job is prime contracting, taxed on 65% of the price. | 5.6% plus county and city | A.R.S. 42-5075; ADOR Contracting FAQs Statute and ADOR FAQ |
| Arkansas | Materials only | You pay tax on materials. Labor on walls, doors, windows, pipes and other nonmechanical parts isn't taxed. Installing flooring, or installing or repairing mechanical and electrical items, in an existing home is taxable. | 6.5% plus local | 26 CAR 30-1003 (formerly GR-21) Rule copy; DFA FAQ for the rate |
| California | Materials only | You pay tax on materials as their consumer. You are the retailer of fixtures you supply and install, like sinks, faucets and prefabricated cabinets. On a lump-sum job, tax is on your cost of the fixture. | 7.25% statewide (6% state plus 1.25% local), plus district taxes | CDTFA Publication 9; Regulation 1521 CDTFA guide, Feb 2025 |
| Colorado | Materials only | On a lump-sum job you pay tax on materials and bill none; labor isn't taxed. | 2.9% plus local, including home-rule cities | CDOR GIL-25-004 CDOR letter, Mar 24, 2025 |
| Connecticut | Materials only | You pay tax on materials and charge none for remodeling an owner-occupied home of one to three units. Work on rental or income property is taxable. | 6.35%, no local tax | CT DRS IP 2018(2) DRS guide, Dec 19, 2018 |
| Delaware | No state sales tax | Charge no sales tax. The contractor owes 0.6472% gross receipts tax on construction receipts over $100,000 a month. | No sales tax; contractors owe 0.6472% gross receipts tax | DE Division of Revenue gross receipts rates Current rate list, undated |
| District of Columbia | Repairs taxed | Remodeling and major repair aren't taxed to the customer; you pay tax on materials. Real property maintenance and minor repairs are taxable to the customer. | 6% (rises to 7% October 1, 2027) | D.C. Code 47-2001; OTR taxable services DC Code and OTR notice |
| Florida | Materials only | You're the final consumer of materials on lump-sum, cost-plus and time-and-materials jobs; charge none. | 6% plus county surtax | FL DOR GT-800067 DOR brochure, rev. Sept 2014 |
| Georgia | Materials only | Contractors are the consumers of materials; installing them in a home isn't taxed to the customer. | 4% plus local | GA DOR Contractor FAQs DOR FAQ, undated |
| Hawaii | Whole job taxed | General excise tax applies to your gross income from the job, labor included. It's a tax on you, not a sales tax, but you may pass it on. | 4% GET plus 0.5% county surcharge | HI DOTAX Tax Facts 99-3 DOTAX, May 2025 |
| Idaho | Materials only | You pay tax on materials and fixtures; installation isn't taxed. | 6% plus limited local | IDAPA 35.01.02.012 Rule copy, eff. Mar 31, 2022 |
| Illinois | Materials only | You pay use tax on built-in materials. Free-standing appliances and furnishings you supply stay taxable. | 6.25% plus local | 86 Ill. Adm. Code 130.1940 Illinois rule |
| Indiana | Materials only | On a lump-sum job you pay tax on materials and charge none. | 7% | IN DOR Information Bulletin 60 DOR bulletin, Mar 2024 |
| Iowa | Repairs taxed | Remodeling, alteration and addition labor is exempt and you pay tax on materials. Repair services on Iowa's taxable list are taxable to the homeowner. | 6% plus 1% local option | 701 IAC 219.13; Iowa Contractors Guide Iowa rule, eff. Aug 28, 2024 |
| Kansas | Materials only | Labor to remodel or repair a home is exempt; you pay tax on materials. Appliance installation stays taxable. | 6.5% plus local | KDOR Publication KS-1525 KDOR guide, rev. July 2025 |
| Kentucky | Materials only | You pay tax on materials and may not bill sales tax as a separate line. | 6%, no local tax | 103 KAR 26:070 Kentucky regulation |
| Louisiana | Materials only | Materials sold to contractors are presumed consumed by them; charge none on a home remodel. | 5% plus local | LAC 61:I.4372; LDR RIB 25-007 Louisiana rule; rate from 2025 bulletin |
| Maine | Materials only | You pay tax on materials when you buy them and charge the homeowner none. | 5.5%, no local tax | Maine Revenue Services Instructional Bulletin 4 MRS bulletin, rev. Dec 22, 2025 |
| Maryland | Materials only | You pay tax on all materials for building, improving or repairing a home and charge none. | 6%, no local tax | COMAR 03.06.01.19 Maryland regulation |
| Massachusetts | Materials only | You pay tax on materials as their consumer and charge the homeowner none. | 6.25%, no local tax | MA DOR Sales and Use Tax Guide DOR guide, updated May 7, 2026 |
| Michigan | Materials only | You pay 6% on materials as their consumer and may not charge sales or use tax to the customer. | 6%, no local tax | Michigan RAB 2025-18 Treasury bulletin, Dec 10, 2025 |
| Minnesota | Materials only | You pay tax on building materials and charge none on a construction contract. Free-standing items are taxed to the customer. | 6.875% plus local | MN Revenue, General Contractors and Subcontractors DOR guidance |
| Mississippi | Materials only | On most home remodels you pay 7% on materials and charge none. Plumbing, electrical, HVAC and dealer-installed work like roofing or carpet charge 7% on the job. The 3.5% contractor's tax covers nonresidential jobs over $10,000. | 7% plus limited local | MS DOR Guide for Construction Contractors DOR guide, undated |
| Missouri | Materials only | You pay tax on materials and charge none, unless the contract passes title to materials before they're installed. | 4.225% plus local | 12 CSR 10-112.010 Missouri rule |
| Montana | No state sales tax | Montana has no general sales tax on remodeling or materials. | No general sales tax; some resort areas have local taxes | MT DOR, General Sales Tax DOR page |
| Nebraska | Whole job taxed | By default (Option 1) you're a retailer and collect tax on the full lump-sum price unless labor is stated separately. Elect Option 2 or 3 and you pay tax on materials and collect none. | 5.5% plus local | Neb. Admin. Code 316-1-017 Regulation copy |
| Nevada | Materials only | You pay tax on materials; an improvement contract with installation isn't a retail sale. | 6.85% statewide plus county | NV Taxation, Construction Contractors Department bulletin |
| New Hampshire | No state sales tax | New Hampshire has no general sales tax on remodeling. | No general sales tax | NH DRA FAQ DRA page |
| New Jersey | Repairs taxed | Capital improvements are exempt with an ST-8, except floor covering, certain landscaping, hard-wired alarms and sign installation. Repairs are taxable; you pay tax on materials. | 6.625% | NJ Division of Taxation S&U-2; S&U-3 Bulletin, rev. Sept 2017; S&U-3 May 2025 |
| New Mexico | Whole job taxed | Gross receipts tax applies to the whole job, labor included, at the rate where the job sits. | 4.875% plus county and city | NM TRD FYI-105 TRD FYI-105, July 2024 |
| New York | Repairs taxed | On a capital improvement, get an ST-124, pay tax on materials and charge none. Repairs and maintenance are taxed on the full bill. | 4% plus local up to 4.875% | NY DTF TB-ST-104; Publication 862 DTF bulletin, Oct 2026 |
| North Carolina | Repairs taxed | Remodels are capital improvements: you pay tax on materials and charge none. Repair, maintenance and installation services are taxable to the customer. | 4.75% plus local and transit | NCDOR Real Property Contracts NCDOR guidance |
| North Dakota | Materials only | You pay tax on materials and don't itemize it to the homeowner; labor isn't taxed. | 5% plus local | ND Guideline: Contractors Guideline, rev. Aug 2025 |
| Ohio | Materials only | You pay tax when you buy materials and charge none. Carpet and some items are retail sales. | 5.75% plus county | Ohio Adm. Code 5703-9-14 Ohio rule, eff. Oct 1, 2026 |
| Oklahoma | Materials only | You pay tax on materials used to repair, alter or remodel; the job itself isn't taxed. | 4.5% plus local | OAC 710:65-7-13 Oklahoma rule |
| Oregon | No state sales tax | Oregon has no general sales tax on remodeling. | No general sales tax | Oregon DOR, Sales Tax DOR page |
| Pennsylvania | Materials only | You pay tax on materials and add no sales tax to the bill. | 6% plus 1% Allegheny, 2% Philadelphia | 61 Pa. Code 31.12 Pennsylvania regulation |
| Rhode Island | Materials only | On a lump-sum remodel you pay tax on materials and charge none. | 7%, no local tax | 280-RICR-20-70-54 Rhode Island regulation |
| South Carolina | Materials only | You're the consumer of materials you buy; charge none. | 6% plus local | SC Regulation 117-314 DOR manual, Sept 2025 |
| South Dakota | Whole job taxed | You pay a 2% excise tax on the full job price, labor and materials, plus sales tax on what you buy. | 4.2% sales tax plus local, back to 4.5% on July 1, 2027; 2% contractor's excise tax | SD DOR Contractor's Excise Tax Guide DOR guide, July 2026 |
| Tennessee | Materials only | You pay tax on materials and don't charge tax on work to the home. Installing removable items is taxable. | 7% plus local up to 2.75% | TN DOR, Sales Tax Issues for Contractors DOR guide, May 2022 |
| Texas | Materials only | Residential repair and remodeling labor isn't taxed. On a lump-sum job you pay tax on materials and charge none. | 6.25% plus local up to 2% | TX Comptroller Publication 94-116 Comptroller publication, rev. Mar 2007 |
| Utah | Materials only | You're the consumer of materials you build into the home; labor isn't taxed. | 4.85% state; 6.10% statewide with local | Utah Admin. Code R865-19S-58 Utah rule |
| Vermont | Materials only | You pay tax on materials and charge none. | 6% plus 1% local option | VT Department of Taxes, Contractors Department page |
| Virginia | Materials only | A contractor who supplies and installs materials is their consumer; charge none. | 4.3% state plus 1% local; some regions add up to 1.7% more | Va. Code 58.1-610; Tax Bulletin 24-3 Ruling, Nov 2024 |
| Washington | Whole job taxed | Collect retail sales tax from the homeowner on the full contract price, labor included. Buy materials for resale. | 6.5% plus local | WA DOR, Custom construction DOR construction guide |
| West Virginia | Repairs taxed | Capital improvements aren't taxed to the customer; you pay tax on materials. Repairs are taxed on labor and materials. | 6% plus city up to 1% | WV TSD 310 Tax Division, July 2026 |
| Wisconsin | Materials only | You pay tax on materials and collect none on real property work. Free-standing items and listed repairs are taxable. | 5% plus 0.5% county; Milwaukee County 0.9% and City of Milwaukee 2% | WI Publication 207 DOR publication, Jan 2019 |
| Wyoming | Materials only | You're the end consumer of materials used in real property; labor isn't taxed. | 4% plus local | WY DOR, Excise Tax FAQs DOR FAQ |
What other sales tax pages get wrong
The pages that rank for these questions are mostly vendor blogs and old state PDFs. Here are two errors we checked against the states.
“Real property construction isn't taxed to the customer”
Washington's Department of Revenue says prime contractors collect retail sales tax from the owner on the gross contract price, labor included.
“Remodeling is never taxable”
Five states tax the whole job, and New York, New Jersey and North Carolina tax repairs and installations even when a remodel is exempt.
Sales tax questions
Do contractors charge sales tax on labor?
Not on a home remodel in most states. Labor is taxed in Hawaii, New Mexico, South Dakota, Washington and, by default, Nebraska, and on repair work in New York, New Jersey, North Carolina, West Virginia, Iowa and DC.
Do contractors pay sales tax on materials?
Yes, in 35 states the contractor pays sales tax on materials when buying them, as their final consumer, and charges the homeowner none. That tax is part of job cost.
Is a home improvement taxable?
Usually not to the homeowner. A remodel that becomes part of the home is a capital improvement in most states, and the contractor pays tax on the materials instead. Repairs are taxable in a few states.
What is the difference between a capital improvement and a repair?
A capital improvement adds value or becomes a permanent part of the home, like a remodeled kitchen. A repair or maintenance job keeps it working. In New York the customer signs an ST-124 for a capital improvement; repairs are taxed on the full bill.
Can I list sales tax on my invoice if I paid it on materials?
Not as sales tax in most materials states. Kentucky and Pennsylvania bar a separate tax line, and Michigan says you may not charge sales or use tax to the customer. Build it into the price instead.
How we checked
We read each state's sales tax rule for construction contractors on the revenue department or legislature site, and its 2026 state rate. Two independent research passes covered all 50 states and DC, and a third reviewer checked the result. Where a state's own page would not load, the row names the copy we read. Last checked .
This guide explains the general rule for remodeling an owner-occupied home. It is not tax advice.