Running a cleaning business comes with a bunch of expenses that, honestly, a lot of owners don’t realize they can write off. From cleaning supplies and equipment to vehicle costs and insurance premiums, these everyday business expenses can really shrink your taxable income if you document and claim them right.
Tax deductions lower your cleaning business’s tax bill by reducing the amount of income you owe taxes on. You could save thousands a year, but a lot of owners miss out just because they don’t know what counts—or they forget to keep records.
You’ve got to know which expenses the IRS allows, track them as you go, and keep receipts or records to back up every deduction you claim.
Key Takeaways
- Cleaning businesses can deduct vehicle expenses, supplies, equipment, insurance, and home office costs when they’re for business use.
- Good record-keeping is crucial if you want to maximize your deductions and avoid headaches with the IRS.
- Professional services, labor costs, and business software subscriptions are valuable write-offs that cleaning companies sometimes overlook.
Essential Cleaning Business Tax Deductions
Most of the big tax savings for cleaning business owners come from three main expense categories. These deductions can make a real dent in your taxable income if you keep good records.
Cleaning Supplies and Materials
All cleaning supplies you use for your business are deductible expenses. Think disinfectants, glass cleaners, floor care products, toilet paper, trash bags, and paper towels.
If you use the supplies within a year, you can deduct them right away. Buy in bulk and use them over several years? Deduct them as you use them.
Track every purchase with receipts and invoices. Honestly, digital receipt apps make life easier and give you backup if you ever need it.
Specialty cleaning products for specific surfaces count too. Wood polish, carpet cleaners, stainless steel cleaners, and tile grout products all qualify as deductible supplies.
Keep all receipts and invoices. Record the purchase dates and amounts, and jot down the business purpose for each supply.
Separate your personal cleaning supplies from your business ones. Mixing them up just makes things messy at tax time.
Business Equipment Purchases and Depreciation
Cleaning equipment is a major deductible expense, but the tax rules are a bit specific. If the equipment’s going to last more than a year, you usually have to depreciate it over several years.
With Section 179, you can deduct the full purchase price of qualifying equipment the year you buy it. Stuff like vacuum cleaners, floor buffers, steam cleaners, and pressure washers usually qualify.
You can deduct commercial vacuum cleaners, carpet cleaning machines, window tools, safety gear, and even business vehicles.
Small tools under $500? Usually, you can deduct those right away. Major equipment over $500 might need depreciation or a Section 179 election.
Don’t forget vehicle equipment like ladder racks and storage systems.
Repairs and maintenance costs for equipment are always deductible. Vacuum repairs, servicing, replacement parts—track it all.
Protective Gear and Uniform Expenses
Work clothing and protective gear you need for cleaning jobs are fully deductible. That means uniforms, safety goggles, rubber gloves, knee pads, and non-slip shoes.
The clothing’s got to be specifically for work and not something you’d just wear out and about. Branded company shirts with logos count, but plain t-shirts don’t.
Rubber gloves, safety goggles, masks, non-slip shoes, back support belts, and company-branded uniforms all qualify.
You can deduct uniform cleaning and maintenance costs too. Dry cleaning, repairs, and replacing worn-out uniforms all count.
Just make sure the clothing is required for the job. If employees could wear it outside of work, you probably can’t write it off.
Maximizing Vehicle and Transportation Write-Offs
Vehicle expenses are often the biggest deduction opportunity for cleaning businesses. You’ve got two methods to choose from, and tracking your miles is everything if you want to save money.
Standard Mileage vs. Actual Vehicle Expenses
You get to pick between the standard mileage rate or the actual expense method. For 2024, the IRS set the standard mileage rate at 67 cents per mile.
The standard mileage method is usually best if your maintenance costs are low. Multiply your business miles by the current rate and you’re done. It covers gas, maintenance, insurance, and depreciation all in one go.
It’s simple, you don’t need receipts, and it covers a lot of your costs.
If you go with actual expenses, you deduct what you really spend on the vehicle. Figure out what percentage of your vehicle use is for business, and apply that to your total vehicle expenses.
Actual expenses include gas and oil, repairs, insurance, registration fees, and depreciation or lease payments.
If your vehicle is expensive or you rack up big maintenance bills, actual expenses might save you more. But you have to keep detailed records all year.
Tracking Business Miles Accurately
Accurate mileage tracking is your best friend if the IRS ever comes knocking. Record the date, destination, business purpose, and miles for each trip.
You can use a manual logbook, but honestly, most cleaning businesses use smartphone apps that track miles automatically with GPS. Those apps take a lot of hassle out of it.
You need to record the date, starting location, destination, business purpose, total miles, and odometer readings.
Track miles from your home office to your first client, between clients, and back home from your last stop.
If you run personal errands during business trips, you have to subtract those miles from your deductible miles. Only business miles count.
Deducting Maintenance and Insurance Costs
You can deduct vehicle maintenance costs when you use the vehicle for business. Repairs, oil changes, tire replacements, and routine maintenance all count.
If you use the actual expense method, figure out what percentage of your car use is business and apply that to your maintenance costs. Use your car 80% for business? Deduct 80% of your repair bills.
Deductible maintenance costs include oil changes, tire purchases, brake work, transmission repairs, and car washes for business vehicles.
Insurance premiums for commercial vehicles are fully deductible if you use the vehicle only for business. If it’s mixed-use, calculate the business percentage for your insurance deduction.
Keeping a separate insurance policy for business vehicles makes life easier. That way, you don’t have to split hairs over business vs. personal use.
Parking fees and tolls during business travel are always fully deductible. Save those receipts from parking meters, garages, and highway tolls when you’re visiting clients.
Home Office and Administrative Expense Deductions
You can shave down your tax bill with home office deductions and administrative write-offs. These cover your workspace, technology subscriptions, and business communication tools—if you use them only for business.
Qualifying for the Home Office Deduction
To qualify, you have to use part of your home exclusively and regularly for business. No, the kitchen table doesn’t count if you also eat dinner there.
The IRS gives you two ways to calculate the deduction. The simplified method is $5 per square foot up to 300 square feet, so the max is $1,500 a year.
The actual expense method is more work but can save you more. Figure out what percentage of your home you use for business, then apply that percentage to your eligible expenses.
Eligible expenses include mortgage interest or rent, property taxes, utilities, home insurance, and repairs.
If you use a 200-square-foot room in a 2,000-square-foot house, you can deduct 10% of those expenses. But you’ll need to keep good records.
Utilities, Internet, and Office Supplies
Utility costs for your business space are deductible. The same goes for internet service you use for business.
Deductible utility expenses include electricity, heating and cooling, high-speed internet for client communication, and business phone lines or cell phone plans.
Office supplies for admin work are fully deductible. Think paper, pens, printer ink, business cards, and postage.
If you use something for both personal and business reasons, like your cell phone, just figure out the business-use percentage. Use it 70% for work? Deduct 70% of the monthly bill.
Software and Technology Subscription Write-Offs
Business software subscriptions are fully deductible. These tools help with scheduling, invoicing, customer management, and tracking your finances.
Deductible software includes customer management systems, scheduling and routing tools, accounting programs, and payment processing software.
Cloud storage, project management platforms, and communication tools also count as business expenses.
A lot of cleaning businesses use specialized software for job scheduling and billing. Monthly or annual subscription fees for these platforms reduce your taxable income dollar-for-dollar.
Keep records of all software purchases and renewals. Screenshots of billing statements and payment confirmations work as proof.
If you use software for both personal and business stuff, just deduct the business-use portion.
Labor, Contractors, and Professional Service Write-Offs
You can deduct 100% of wages paid to employees and legitimate payments to independent contractors. Training costs and professional certifications for your staff are also deductible if you document them right.
Employee Wages and Payroll Taxes
All wages you pay employees are fully deductible—regular pay, overtime, bonuses, and holiday pay.
You can also deduct your share of payroll taxes. That means Social Security (6.2% of wages up to the annual cap), Medicare (1.45% of all wages), federal unemployment tax (FUTA), and state unemployment tax (SUTA rates vary).
Workers’ comp insurance premiums are completely deductible. Most states make you carry this if you have employees.
Employee benefits like health insurance premiums and retirement plan contributions are deductible. Smaller cleaning companies use these perks to attract good workers.
Vacation pay and sick leave count as deductible wages. Just remember, you deduct them when you actually pay the employee.
Independent Contractor Payments
You can deduct all payments to independent contractors for legitimate business services. That covers subcontracted cleaning, specialty services, and one-off projects.
If you pay a contractor $600 or more in a year, you need to issue Form 1099-NEC by January 31st.
A contractor controls how they do the work, brings their own tools, and usually works for multiple clients. A written agreement helps clarify things.
Don’t misclassify employees as contractors—seriously, the IRS hates that.
Payments to contractors for marketing, bookkeeping, legal help, and consulting are all deductible. Equipment rental from contractors is a business expense too.
Deductible Training and Certification Costs
Training costs that help employees do their current jobs better are 100% deductible. That includes formal programs and informal skill-building.
Deductible training costs cover safety certification, specialized cleaning workshops, equipment operation training, customer service, and industry conferences.
Travel for training—transportation, lodging, and meals (meals are subject to a 50% limit)—is deductible.
Training materials like books, videos, and online courses are fair game. Software subscriptions for training platforms count too.
Memberships in cleaning industry associations are deductible and often include ongoing training.
You can deduct your own professional development costs, such as business coaching, leadership training, and industry education. If it helps you run your cleaning business better, it probably counts.
Business Insurance Deductions for Cleaning Companies
Running a cleaning business means you can deduct premiums paid for a bunch of business insurance types from your taxable income. This includes liability coverage, workers’ comp, commercial vehicle insurance, and even health insurance premiums for owners.
General Liability and Workers’ Compensation Premiums
General liability insurance protects your cleaning business from claims if you accidentally damage property or someone gets hurt during a job. You can deduct the full cost of these premiums as a business expense.
Most states require workers’ compensation insurance when you have employees. This coverage helps workers who get injured while working.
You can deduct all premiums you pay for workers’ comp.
Professional liability insurance covers mistakes or oversights in your cleaning services. This coverage is especially important for commercial cleaning contracts.
You can write off the full cost of those premiums, too.
Hang onto copies of all your insurance policies and payment receipts. Make sure you separate personal coverage from business coverage, so you only claim the right portion.
Commercial Auto and Bonding Insurance
If you use a vehicle for work—hauling cleaning supplies or getting to job sites—commercial auto insurance covers you. When you use the vehicle only for business, you can deduct the whole premium.
If you use the same vehicle for both personal and business trips, you’ll need to track business miles and only deduct the business portion. It’s a bit of a hassle, but it’s worth it.
Bonding insurance protects your clients if an employee steals something or causes damage. A lot of commercial clients won’t even sign a contract unless you have this.
You can deduct all bonding insurance premiums as business expenses.
Umbrella policies add extra liability protection above your standard coverage. These are deductible, too, and often cost less per dollar of coverage than your main policies.
Health and Dental Insurance for Owners
If you’re self-employed and run a cleaning business, you can deduct health insurance premiums paid for yourself and your family. This includes medical, dental, and long-term care insurance.
You can’t deduct more than your business’s net profit, though. If you can get health coverage through your spouse’s employer, you might run into some restrictions on this deduction.
If you own more than 2% of an S-corp, you can deduct health insurance premiums paid through the business, but you have to include them as wages on your W-2.
Keep detailed records of all premium payments and coverage periods. Make sure the coverage was active during the months you’re claiming deductions.
Other Common Write-Offs for Cleaning Businesses
Cleaning business owners can claim a bunch of other deductions that often get overlooked but can really lower your taxable income. Things like licensing costs, uniforms, marketing, and equipment upkeep all add up.
Licensing Fees and Permits
To operate legally, you’ve got to pay for licenses and permits. These are ordinary and necessary business expenses.
You can deduct business license renewals, professional certifications, and municipal permits. Some states require special licenses for cleaning, especially if you handle commercial spaces or hazardous materials.
Common deductible licensing costs include:
- Annual business license renewals
- Professional cleaning certifications
- Bonding fees required by clients
- Workers’ compensation permits
- Environmental compliance permits
Some licenses require you to take continuing ed courses. You can deduct those training costs, too, as long as they’re needed to keep your certification.
Keep digital copies of all your licensing docs and payment receipts. Set calendar reminders for renewals—late fees aren’t deductible, and nobody wants to pay extra.
Uniform Laundering and Replacement
Looking professional matters in cleaning. Uniform costs and maintenance are fully deductible.
You can write off the purchase price of work uniforms—shirts with your logo, aprons, safety gear, all of it. Laundering those uniforms? That’s deductible, too.
Uniforms get dirty fast thanks to cleaning chemicals and grime. Some owners use commercial laundry services, others just dedicate a load at home to work clothes.
Deductible uniform expenses:
- Buying uniforms
- Replacing worn-out uniforms
- Commercial laundry services
- Home laundry costs (for work clothes only)
- Dry cleaning for special garments
Keep uniform expenses separate from your regular clothes. Uniforms with your company logo are a lot easier to justify as deductions than plain work pants.
Advertising and Marketing Expenditures
Marketing is what brings in new clients and keeps your business growing. You can deduct all your promotional expenses.
Digital marketing costs like website hosting, search engine ads, and social media promotion are all deductible. Traditional stuff—flyers, business cards, newspaper ads—counts, too.
Common marketing deductions:
- Website development and hosting fees
- Google Ads and Facebook
Best Practices for Keeping Accurate Records
Accurate documentation is the backbone of successful tax deductions. If you keep good records, you’ll save money and a lot of stress at tax time.
Choosing Effective Expense Tracking Tools
Digital expense tracking software is the easiest way to manage your cleaning business finances. Programs like QuickBooks Self-Employed, FreshBooks, and Wave Accounting are popular.
These tools automatically sort your expenses and sync with your bank accounts. They cut down on manual errors and create reports for tax prep.
Look for features like:
- Receipt scanning
- Bank integration
- Mileage tracking
- Tax category setup
- Cloud backup
Mobile apps let you record expenses on the spot, so you don’t lose receipts or forget transactions. A lot of them use GPS to log business trips to client sites, which is honestly a lifesaver.
If you’re running a small operation, a spreadsheet can work. Make columns for date, amount, vendor, category, and business purpose. Try to update it weekly so nothing slips through the cracks.
Organizing Receipts and Invoices
If you’re sticking with paper receipts, get organized. Use accordion folders with monthly tabs or a file box sorted by expense category.
Label sections clearly:
- Vehicle expenses (gas, maintenance, insurance)
- Cleaning supplies (chemicals, equipment, tools)
- Office expenses (software, phone bills, supplies)
- Professional services (accounting, legal fees)
Digital storage is safer for the long haul. Scan receipts right after you buy something using apps like CamScanner or Adobe Scan.
Pick a consistent file naming system. Try something like: YYYY-MM-DD_Category_Vendor_Amount. For example: 2025-03-15_Supplies_HomeDepot_89.50.
Store files in cloud services like Google Drive or Dropbox. That way, you’re protected if your computer crashes or something happens.
Always keep backup copies of important stuff. The IRS can ask for documentation up to seven years after you file.
Avoiding Common Documentation Mistakes
If you don’t note the business purpose for an expense, you might lose your deduction. Jot down why you bought something on the receipt or in your tracking software.
Mixing personal and business expenses is a recipe for trouble. Use a separate credit card and bank account for business stuff.
Common mistakes:
- Using personal cards for business purchases
- Missing receipt details or dates
- Not recording small cash buys
- Forgetting to log business miles daily
- Skipping contractor payment records
For cash transactions, write down all the details—what you bought, when, how much, and why. Snap a photo of handwritten receipts before they fade.
If you pay contractors, you’ll need Form 1099 documentation. Save contracts, invoices, and payment records for anyone you pay over $600 a year.
Don’t wait until tax season to update your records. Doing it weekly keeps things fresh and less overwhelming. Set reminders to review and organize your financial docs regularly.
Frequently Asked Questions
Cleaning business owners have plenty of questions when it comes to deductions. Knowing the details about vehicles, supplies, home offices, software, insurance, and record-keeping really helps maximize your savings.
What specific vehicle expenses can a cleaning business owner claim as tax deductions?
You can deduct mileage between job sites using the IRS standard mileage rate. Gas, maintenance, repairs, insurance, and depreciation are all fair game.
You have to pick between the standard mileage method or the actual expense method. The standard rate is simple and covers most costs. The actual expense method means tracking each cost, like fuel and repairs.
Only business use counts. You can’t deduct miles for personal errands. Driving from home to your first job site usually doesn’t qualify as a business expense.
How can cleaning business owners maximize deductions for supplies and equipment purchases?
All cleaning supplies used for your business are fully deductible in the year you buy them. That’s everything from chemicals to mops and paper towels.
Equipment deductions depend on cost and useful life. Small stuff can be written off right away, but pricey gear like commercial vacuums might need to be depreciated over several years.
Keep detailed receipts for everything. Sorting expenses by category makes tax prep way easier.
What are the guidelines for deducting home office expenses for cleaning business owners?
Your home office has to be used exclusively and regularly for business activities. A spare bedroom just for scheduling and paperwork works. The kitchen table? Not so much.
You can use the actual expense method or the simplified method. The simplified method lets you claim $5 per square foot up to 300 square feet. The actual method means figuring out what percentage of your home is business space.
You’ll need proof your space is business-only. Photos, measurements, and records of what you do there help support your claim.
Are software subscriptions eligible for tax deductions in a cleaning business, and what is the claiming process?
Software subscriptions for running your business—scheduling, invoicing, accounting—are all deductible. If it helps you operate, you can write it off.
Deduct the cost in the year you pay for it, whether it’s monthly or annual. Even software that helps you track other deductions can be claimed.
Save receipts and confirmation emails for all software buys. Credit card statements showing the recurring fees work as backup.
In what ways can insurance premiums be written off in a cleaning business tax filing?
General liability insurance premiums are fully deductible. Workers’ comp and commercial vehicle insurance are, too.
If you’re self-employed, you can deduct health insurance premiums for yourself and your family. This shows up on the front page of your tax return, not as a business expense.
Bonding costs for certain contracts are deductible as business expenses. You can also claim professional liability premiums as operating expenses.
What best practices should cleaning business owners follow to maintain records that support their tax deduction claims?
Keep all receipts and invoices sorted by expense category. I’d recommend digital copies, maybe in a cloud service, so you’re not scrambling if you lose a paper.
Use separate bank accounts and credit cards for your business. Mixing things up just makes life harder, especially if you ever get audited.
Take a few minutes each month to review expenses. It’s way easier to spot missing receipts when you still remember what you bought.
If you’re tired of spreadsheets, try business management software. It can track everything and spit out reports when tax time rolls around.
