EZDeals4U

Auto Repair Shop Sales Tax: Parts vs. Labor, State by State (2026)

Q: Is auto repair labor taxable?

It depends on the state. Of eight states checked in October 2026, Alabama, Texas, California and Georgia don't tax repair labor that is listed separately from parts. New York, Pennsylvania and Ohio tax repair services including labor. Florida taxes the whole repair charge whenever the shop supplies parts; labor-only repairs are not taxed.

Q: Do I charge sales tax on labor in Alabama?

Not if the labor is listed separately from the parts. Alabama's rule says the full invoice is taxable when it does not separately state parts from labor, and fabrication labor (making a part) is taxable even when billed separately.

Q: Is the shop supplies fee taxable?

It depends on the state. In California a general, nonspecific supplies charge isn't allowed; supply charges tied to parts are taxable and those tied only to labor are not. In Texas a separately itemized consumables charge is taxable to the customer. Check your state's guide.

Published October 31, 2026 · by EZDeals4U · every rule below links to the state tax page it came from

Short answer

Parts are taxable in every state we checked. Labor depends on the state, and often on how you write the invoice. In Alabama, Texas, California and Georgia, labor listed separately from parts isn't taxed. New York, Pennsylvania and Ohio tax repair labor. Florida taxes the whole job whenever you supply parts. In Alabama, an invoice that lumps parts and labor together makes the whole bill taxable.

The eight states at a glance

State	Parts	Repair labor	Watch out for
Alabama	Taxable	Not taxed if listed separately	Lumped invoice = whole bill taxable. Fabrication labor is taxable.
Texas	Taxable	Not taxed	One-price invoice: you don't charge tax, you pay it on your own parts purchases. Remodeling labor is taxable.
Florida	Taxable	Taxed whenever you supply parts; labor-only jobs aren't	Sublet labor on a parts-and-labor invoice is taxable too.
California	Taxable	Not taxed; must be listed separately	Fabrication labor is taxable. No general "shop supplies" fee.
New York	Taxable	Taxable	Tax the total charge for parts and labor.
Pennsylvania	Taxable	Taxable	The state lists motor vehicle repair services, including labor, as taxable.
Ohio	Taxable	Taxable	State law counts repairing property as a taxable sale.
Georgia	Taxable	Not taxed if listed separately	Not listed separately = labor taxable.

Checked October 31, 2026 on each state's own site (sources under each state below). Rates aren't included because they change and depend on your local area; look yours up on your state revenue site.

Alabama

Parts you put on a customer's car (pistons, belts, batteries, tires) are a retail sale to the customer and taxable.
Labor, installation and service charges listed separately from parts aren't taxable. If they aren't separated, they are. The rule puts it plainly: the full invoice is taxable when it doesn't separately state parts from labor. Your books also have to show parts and labor separately.
Making a part is different: if you fabricate a repair part, the whole charge for it is taxable, including the labor, even if you bill the labor separately.
Sublet work: list the sublet parts separately from the labor, or the whole job is taxable.
Supplies and tools you use up (paint, lubricants, tools, machinery) are taxable when you buy them. If the supplier didn't charge tax, you owe use tax.
Scrap tire fee: $1 per replacement tire, sent to the state. List it separately on the receipt and it isn't subject to sales tax; build it into the tire price and it is.
To buy parts tax-free for resale, you need an Alabama sales tax license.

Sources: Ala. Admin. Code r. 810-6-1-.07; r. 810-6-1-.84; r. 810-6-1-.141; ALDOR scrap tire fee FAQ; ALDOR resale FAQ.

Texas

Parts are taxable; repair labor isn't.
Itemized invoice: charge tax on the parts only, and buy those parts tax-free with a resale certificate (Form 01-339).
One-price invoice (parts and labor together): don't charge the customer tax. Instead, you pay tax to your supplier on the parts you use.
Consumables (rags, solvents, masking tape, sandpaper): on a one-price invoice you pay tax on them yourself. If you itemize a consumables charge, you charge tax on it and can buy them tax-free.
Manufacturer warranty and recall work isn't taxable. On an extended warranty, tax is due on parts the manufacturer doesn't cover.
Remodeling isn't repair: body kits or a van-to-camper conversion are taxable on parts and labor.

Source: Texas Comptroller Publication 94-113, Motor Vehicle Repair and Remodeling.

Florida

When you supply parts, the total repair charge is taxable, labor included, even if a part is provided at no charge.
Labor-only repairs aren't taxable, but keep proof that no parts went on the vehicle.
A 2025 state advisement found that labor-only sublet charges (such as sensor recalibration) on an invoice that also includes parts are taxable.
Buy parts and materials that stay in the repair (parts, bolts, paint, oil) with your Annual Resale Certificate. Tools, sandpaper and detergents are taxable overhead.

Sources: Florida DOR brochure GT-800010; Technical Assistance Advisement 25A-007 (binding only on the business that asked, but it shows how the state reads the rule).

California

Parts (new, used or rebuilt, including tires and batteries), oil, grease and fluids are taxable.
Labor isn't taxable, and you must list it separately on the invoice. Fabrication labor and labor to install parts on new vehicles are exceptions.
No general "shop supplies" fee: state law requires each supply item to be listed. Supplies tied to parts are taxable; supplies tied only to labor aren't.
Core charges: on a new or used part, the core charge is taxable even if you refund it later. On a rebuilt part, refund the tax along with the core.
The California tire fee isn't subject to sales tax; the oil recycling fee you pass on is.

Source: CDTFA Publication 25, Auto Repair Garages and Service Stations.

New York, Pennsylvania and Ohio

New York: collect sales tax on the total charge for parts and labor. Insurance-paid repairs are taxable. Buy parts and fluids that go to the customer with Form ST-120; shop towels and sandpaper can't be bought tax-free.
Pennsylvania: the state's list of taxable items includes motor vehicle repair services, including labor, along with parts, supplies and lubricants.
Ohio: state law counts repairing tangible personal property as a taxable sale. To buy parts for resale, give your supplier an exemption certificate.

Sources: NY Tax Bulletin ST-40, Auto Repair Shops; Pennsylvania Notice of Taxable and Exempt Property (28 Pa.B. 2730); Ohio R.C. 5739.01 and 5739.03.

Georgia

Repair and installation labor are exempt when listed separately on the invoice. If not, the labor is taxable.
Buy parts for resale tax-free with Form ST-5; you need a valid Georgia sales tax number when you buy.

Sources: Georgia DOR, What is subject to sales and use tax; Georgia DOR contractor FAQs; Georgia DOR, Nontaxable sales.

Mistakes the states warn about

One lump price for parts and labor. In Alabama the whole invoice becomes taxable; in Georgia the labor does. Itemize.
Assuming labor is never taxed. New York, Pennsylvania and Ohio tax it, Florida taxes it with parts, and fabrication labor is taxable in Alabama and California.
Buying tools or shop supplies on a resale certificate. Only what passes to the customer qualifies.
A catch-all "shop supplies" line in California. List each item.
Hiding a state fee inside the price, like Alabama's $1 tire fee, which then becomes taxable.

Not in one of these states?

Find your state's tax agency in the Federation of Tax Administrators list, then search for its auto repair guide (California calls it Publication 25, Texas 94-113, New York ST-40). Trust only pages on the state's own site, and look up the rate for your shop's address there.

Bottom line: list parts and labor on separate lines on every invoice. In most states that's what keeps labor untaxed, and where labor is taxed anyway, it still keeps your records clean. This is general information from state tax pages; your accountant or your state revenue office can confirm what applies to your shop.

Where Monkey Wrench fits

We make Monkey Wrench, so read this part with that in mind. Its repair orders keep parts, each labor line, sublet work and fees on separate lines. In Settings you set your sales tax rate and choose what's taxed: parts (on by default), labor and fees (off by default; switch them on if your state taxes them). The sales tax you collect is kept out of your income in the profit report. It doesn't file your sales tax return or look up rates for you. It's Windows software for $79 once, with no monthly fee.

See Monkey Wrench, $79 onceWindows 10 & 11 · works offline · itemized repair orders and invoices with your sales tax settings

Questions

Is auto repair labor taxable?

It depends on the state. Of the eight we checked, Alabama, Texas, California and Georgia don't tax repair labor listed separately from parts. New York, Pennsylvania and Ohio tax repair labor. Florida taxes the whole charge whenever you supply parts; labor-only repairs aren't taxed.

Do I charge sales tax on labor in Alabama?

Not if the labor is listed separately from the parts. The full invoice is taxable when parts and labor aren't separated, and labor to make a part is taxable even when billed separately.

Can I buy parts tax-free for resale?

Generally yes, for parts that go on the customer's vehicle, using your state's resale certificate or license (Texas Form 01-339, Florida DR-13, New York ST-120, Georgia ST-5, an Alabama sales tax license). Tools and supplies you use up yourself are taxable when you buy them.

Is the shop supplies fee taxable?

It depends on the state. California doesn't allow a general supplies charge; supplies tied to parts are taxable and those tied only to labor aren't. In Texas, an itemized consumables charge is taxable to the customer.

Published by EZDeals4U, maker of Monkey Wrench. Rules summarized from each state's official tax pages checked on 2026-10-31. Tax rules change; check the linked pages or ask your accountant before relying on them.