How to start a pressure washing business in Texas: sales tax, wash water and setup

This page covers what changes for a pressure washer in Texas. The national pressure washing startup guide handles equipment, pricing and finding customers. The Texas differences are a broad sales tax on cleaning and a patchwork of city wash water rules that come with fines.

Pressure washing is a taxable service in Texas

Section 151.0048 of the Texas Tax Code lists a taxable "real property service" to include building or grounds cleaning, janitorial or custodial services. The Comptroller's Publication 94-111 (dated October 2006) applies that to washing. It says pressure washing is taxed under two rules: washing tangible personal property falls under Rule 3.292, and washing buildings, sidewalks and parking lots falls under Rule 3.356 as building or grounds cleaning. On homes, the same publication says tax is due on the charge to clean a home, office or other building.

The state rate is 6.25 percent, and local jurisdictions can add up to 2 percent, for a combined maximum of 8.25 percent, according to the Comptroller. The tax applies to the amount you bill. On a $400 house wash at the 8.25 percent maximum, the tax is $33.00. Look up the combined rate for the job address, because a customer across a city line can face a different total.

Vehicle and equipment washing sits under a different rule than building washing. If you plan to wash fleets or trucks as well as flatwork, ask the Comptroller how Rule 3.292 applies to your invoices. We did not confirm a rate or exemption for that work.

Sales tax permit and supplies

Collecting tax starts with a Comptroller sales tax permit. Its sales tax page links an online application, and after approval it tells you by letter whether you file monthly, quarterly or yearly. The Comptroller's cleaning publication adds that you pay tax on soap, chemicals, materials, supplies and equipment used to perform a taxable service, but can use a resale certificate for items that transfer to the customer. Surface cleaner, hoses and pumps are yours, so the tax you pay on them is a cost. See pricing pressure washing jobs for carrying costs into a quote, and sales tax on services covers invoice lines.

Wash water rules: the state law and the city permits

Texas Water Code section 26.121(a) says that unless the Texas Commission on Environmental Quality authorizes it, no one may discharge sewage, municipal, recreational, agricultural or industrial waste into or adjacent to state waters, or discharge other waste that causes pollution. That is the legal base. The day-to-day enforcement comes from cities, which run storm drain systems under permits and write their own ordinances.

Fort Worth also says cold water can reach the storm drain only if it has no soap, detergent, degreaser or similar agents, and only after screening for debris and passing through an oil absorbent boom or pad. Hot water over 110 degrees needs prior permission. Wash water that cannot go to the storm drain must be collected on the property. Sanitary sewer discharge requires the property owner's permission, a pH between 5.0 and 12.0, a temperature at or below 150 degrees, and never through a manhole. Fort Worth warns that washing a parking lot or gas station with plain water will likely violate the ordinance, because oil, grease and metals wash off too.

Austin tells operators to call Austin Water's Utility Compliance Services Division before starting to confirm a disposal plan. Whichever city you work in, call its stormwater or environmental office before your first job. Cities differ, and the fines are large relative to a typical house wash. Our national guide covers equipment such as berms, mats and recovery pumps.

Licensing: what Texas does and does not require

As of October 2026, Texas does not issue a state pressure washing license. The Texas Department of Licensing and Regulation and other boards license specific trades such as electricians and air conditioning contractors. If you also spray pesticides or lawn products, the Texas Department of Agriculture licenses those applicators, so keep chemical work on that side of the line in mind. Our Texas contractor licenses guide lists the trades. Ask each city about local registration.

Entity, franchise tax and hiring

A Texas LLC is formed by filing Form 205 with the Secretary of State; the fee printed on the form in October 2026 is $300. The Comptroller expects a franchise tax report each May 15, and lists a no tax due threshold of $2,650,000 in annualized revenue for 2026 and 2027 reports. See our Texas startup guide for all steps.

For crews, the Texas Workforce Commission says unemployment tax liability starts once you pay $1,500 or more in wages in a calendar quarter or have an employee during twenty different weeks in a year, and asks you to register within ten days. The Texas Department of Insurance calls workers' compensation optional for most private employers, and says employers who skip it must report that to the state and report injuries causing more than one day of lost time. Compare coverage options in business insurance for contractors.

What to do first

1. Apply for the sales tax permit and file Form 205 for the LLC.
2. Call the stormwater office of each city you serve. Ask whether mobile washers need a permit and what wash water method it accepts.
3. Buy a recovery system before your first job, not after a warning letter.
4. Put "plus applicable sales tax" on your website and estimates. Our pressure washing industry page shows a quote request flow that includes it.
5. Read pressure washing SEO to get found by homeowners in your cities.

Read this as general background, not legal or tax advice. Verify each point with the Comptroller, your city and the Texas Commission on Environmental Quality.

Frequently asked questions