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.
Pasadena's Small Business Bookkeeper
The Next Step:
A 15-Minute Call
Tell us where your books stand today. We'll ask a few questions, share how we can help, and give you a clear quote.
More Questions
What's the best way to pay landscaping crews, W-2 or 1099?
In California, almost every landscaping crew member needs to be on W-2 payroll. The state's ABC test makes 1099 classification very hard to justify for regular crew labor, and misclassification penalties are severe.
Read answerWhat is a WIP report and why does my construction company need one?
A WIP report compares estimated costs, actual costs, revenue billed, and percentage complete for every active job. It shows whether you're overbilled or underbilled and is required for bonding, bank financing, and accurate financial statements.
Read answerHow do I track rental income and expenses for tax filing in California?
Track income and expenses separately for each rental property and report them on Schedule E. California mostly conforms to federal rules, but there are a few state differences that affect what you can deduct, especially around depreciation.
Read answerHow do I handle security deposit accounting for rental properties?
Security deposits are liabilities, not income. Hold them separately, follow California's 21-day return rule, and only recognize the money as income when you actually apply it to unpaid rent or damages.
Read answerHow do real estate teams handle bookkeeping when splitting commissions?
Track each transaction in layers: gross commission from the sale, brokerage split, team lead share, and payouts to team members. How you classify team members as W-2 employees or 1099 contractors determines whether those payouts run through payroll or get reported on year-end 1099-NEC forms.
Read answerHow do I track change orders in my construction accounting?
Document every change order in writing with customer approval before work starts, then update your project budget and contract value to reflect the new scope. Track change order costs and revenue separately from the original contract so you can see whether changes are helping or hurting project margins.
Read answer
