Starting a house cleaning business in Washington: janitorial tax, L&I premiums and paid sick leave

Washington has more rules that hit a cleaning company than most states, mostly through payroll. The state sells your workers' comp, prices it by the hour, and pairs it with a high minimum wage, paid sick leave and a family leave premium. Sales tax is the opposite story: routine cleaning is treated more favorably than you might expect. Start with the national cleaning startup guide and the Washington startup page, then use this page for what is specific to the state.

Janitorial cleaning is not a retail sale, but specialized cleaning is

Washington's Department of Revenue taxes many services that other states leave alone, and its retail sales tax page lists cleaning of tangible personal property and lawn maintenance among them. Cleaning a building is handled by a separate rule. WAC 458-20-172 defines janitorial services as activities performed regularly and normally by commercial janitor businesses: window washing, floor cleaning and waxing, cleaning interior walls and woodwork, cleaning rugs, drapes and upholstery in place, dusting, trash disposal and sanitizing bathroom fixtures. The rule says the retail sales tax does not apply to janitorial charges. Revenue's industry guide says the income falls under the service and other activities business and occupation (B&O) tax, and that retailing B&O and retail sales tax do not apply.

Specialized or non-repetitive cleaning is a retail sale, with retailing B&O tax and collected sales tax. Revenue's list of retail cleaning includes water and moisture removal after floods or leaks, tile and grout restoration, mold abatement, duct cleaning, fire damage and smoke odor cleanup, hoarder cleanup, crime scene and biohazard cleanup, fish tank cleaning, pool and hot tub cleaning, and exterior building cleaning. The rule also lists work that is not janitorial, including cleaning exterior walls, special cleanup after construction, fires or floods, furnace or chimney cleaning, and painting. A house cleaning company that adds a post-flood or hoarding job to its menu has changed tax categories for that job.

Here is the catch for a residential business. The janitorial guide on Revenue's site says it covers commercial janitorial services and does not mention residential house cleaning, and the WAC definition refers to what commercial janitor businesses normally do. Neither tells a maid service in so many words how a homeowner's weekly clean is treated. Ask Revenue for a written ruling or confirm by phone before you publish prices, and keep the answer in your files. Two other points are clear from the guide: janitorial businesses must pay sales tax on cleaning products and tools they buy, and you report use tax on your excise tax return if a vendor does not charge it. If you resell supplies to customers, a reseller permit applies only to the amount you sell. Washington's general state rate is 6.5 percent plus a local rate; see the home services sales tax table for comparison.

L&I sells your workers' comp, and the bill follows hours

Washington is a state fund state under RCW 51.14.010: employers insure through the Department of Labor and Industries (L&I) or self-insure, and there is no private policy to shop. The first employee you hire has to be covered, while sole proprietors and partners are exempt for themselves under RCW 51.12.020. L&I's overview explains that you apply for the workers' comp account along with the state business license, are assigned one or more risk classifications, track employee hours, and report the combined hours for each risk class every quarter, even a quarter with no hours. Premiums are based on those hours rather than a percentage of payroll, and L&I adjusts your base rate with an experience factor drawn from the prior three years of hours and claims. The employer can collect an employee share through payroll deductions, equal to one-half of the medical aid, Stay at Work and supplemental pension rates. L&I states it does not collect the share from workers directly. If you skip the deduction, you still owe the full premium.

That structure matters for a cleaning company whose staff come and go. Overtime, part-time shifts and a month of training all become reportable hours. Set up timekeeping from the first shift using the practices in our guide on timesheets and payroll for field crews, and look up your risk class on L&I's rates page before you price a contract.

Minimum wage, sick leave and family leave premiums

L&I announced a $17.13 state minimum wage for 2026, up 2.8 percent from $16.66. Cities may set higher rates, and L&I names Seattle, SeaTac, Tukwila, Renton, Bellingham, Everett, Burien and unincorporated King County as having them. A crew working in more than one jurisdiction needs the rate for each job location.

RCW 49.46.210 requires employers to let employees accrue at least one hour of paid sick leave for every 40 hours worked. Employees can use it starting on the 90th calendar day after they start. Employers do not have to allow carryover beyond 40 hours, do not have to pay out leave on separation outside the construction industry, and cannot count leave as an absence that triggers discipline. Verification can be required for absences longer than three days.

Paid Family and Medical Leave is funded by premiums. The Employment Security Department set the 2026 rate at 1.13 percent of wages, up from 0.92 percent, with employers carrying 28.57 percent of it and employees 71.43 percent. Businesses with fewer than 50 employees do not have to pay the employer share unless they choose to, but they must still collect the employee share from workers or pay it for them. A cleaning company with a dozen staff generally falls under that line, though you should confirm your count with the department.

License, LLC and call recording

Washington business licensing runs through the Department of Revenue. You need a business license if you hire employees within 90 days, collect sales tax, do business under a name other than your legal name, or have gross income of $12,000 a year or more, and cities may require endorsements. The Secretary of State lists the LLC certificate of formation at $180, the initial report at $10 and each annual report at $70, with expedited service costing extra. Compare it in the LLC fee table.

If you record booking calls to review quotes, Washington is an all-party state. RCW 9.73.030 requires consent of everyone on the call, and an announcement counts only if it is itself recorded. Our guide on recording business calls explains how to set a greeting.

First steps in order

1. Get the Revenue ruling on residential janitorial work in writing, then price visits on that basis.
2. File the LLC, then the Business License Application, and open the L&I account in the same process.
3. Set up hourly timekeeping and a payroll that tracks sick leave, L&I hours and the PFML premium.
4. Check the minimum wage for every city on your route before you set pay rates.
5. Price your house cleaning jobs after you know your payroll load.

Confirm before acting

This is general information as of October 2026 from the Washington sources listed below, not legal or tax advice. Premium rates, local wage rates and tax treatment of services change, and L&I rate tables are specific to your risk class. Confirm each item with the agency before you rely on it.

Frequently asked questions