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What expenses can a janitorial company deduct on their taxes?

Cleaning supplies are the most consistent deduction for janitorial businesses. Chemicals, disinfectants, paper products, trash bags, gloves, mop heads, microfiber cloths, and anything else consumed on the job are fully deductible as supplies. These add up faster than most owners realize, so keep receipts and code purchases accurately throughout the year.

Equipment deductions split into two buckets. Smaller items under $2,500 like backpack vacuums, carts, and standard tools can be expensed in the year purchased. Larger equipment such as floor buffers, auto scrubbers, pressure washers, and work vehicles can be depreciated over several years or deducted in full using Section 179 up to the annual limit. The right approach depends on your overall tax picture for the year.

Uniforms with company branding are deductible, including laundering costs. Plain clothing that could be worn off the job doesn’t qualify, even if you only wear it for work. Branded shirts, logo aprons, and safety gear like gloves, goggles, and slip-resistant shoes all count.

Vehicle expenses are a major deduction if you drive between job sites. You can use the standard mileage rate or the actual expense method covering gas, maintenance, insurance, registration, and depreciation. Track mileage as you go with an app. Reconstructing it from memory at tax time doesn’t hold up if the IRS asks for records.

Insurance premiums for general liability, workers’ compensation, commercial auto, and janitorial bonds are all deductible. Bonding is often required for commercial contracts, and that cost is fully deductible as a business expense.

Employee wages and the employer portion of payroll taxes are deductible. This includes Social Security, Medicare, federal and state unemployment, and workers’ comp premiums. If you pay crew members as W-2 employees, everything you spend on their compensation reduces taxable income. Cleaning service operators who use contract labor need to issue 1099-NEC forms to anyone paid $600 or more during the year. Those payments are deductible, but only if the 1099s are filed. Skip the filing and the IRS can disallow the deduction.

Marketing and advertising are fully deductible. This includes your website, online ads, vehicle graphics, door hangers, business cards, and any directory listings. Phone and internet used for business are deductible too. If you use a personal cell phone, you can deduct the business-use percentage.

Professional services including bookkeeping, tax preparation, legal fees, and business consulting are deductible. So are licensing fees, business permits, and any continuing education or certifications related to the cleaning industry.

Other commonly missed deductions include office supplies, bank and merchant processing fees, software subscriptions (scheduling apps, accounting software, route planning tools), and interest on business loans or credit cards used for business purchases. Rent on storage space for equipment and supplies is deductible, as is a home office if you have a dedicated space used exclusively for running the business.

The biggest mistake janitorial owners make is not tracking smaller recurring expenses. The $40 in supplies every week, the monthly software subscriptions, the gas fill-ups between jobs. These disappear when you’re not recording them, and by year end you’ve lost thousands in legitimate deductions. Working with Pasadena bookkeepers who understand cleaning businesses means every deductible expense gets captured as it happens, not reconstructed from guesswork in April.

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A Squared Bookkeepers is a Pasadena accounting firm serving small and medium-sized businesses throughout the San Gabriel Valley and greater Los Angeles. We provide full-service bookkeeping, payroll, and advisory services, led by an owner who brings 20+ years of accounting experience from institutional real estate and construction.

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