Resale Certificate: What It Is and How to Get One

A resale certificate lets you buy inventory without paying sales tax. See how to get one, which form your state uses, and the mistake that costs $500.

Entrepreneurship

Oct 23, 2026

Home goods shop owner in a mustard cardigan checks a wholesale shipment of mugs against a packing list in his stockroom

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A resale certificate lets you buy inventory tax-free because you will collect sales tax from your customer instead.
Get your state sales tax permit first. Its number goes on every certificate you send to suppliers.
Texas uses Form 01-339, California CDTFA-230 and Florida DR-13. Multistate forms cover 38 or 24 states.
Only items you resell qualify. Supplies, equipment and personal purchases stay taxable, and misuse brings penalties.
Florida certificates expire every December 31. Refresh every supplier's certificate each January to stay covered.

A resale certificate is a form you give your supplier so you can buy inventory you plan to resell without paying sales tax on it. The tax doesn't disappear. You collect it from your customer at the final sale and send it to the state.

Forty-five states charge a statewide sales tax, according to the Tax Foundation, and each one writes its own resale rules. Get the certificate right and your cash stays in inventory instead of prepaid tax.

What is a resale certificate?

Treat a resale certificate as proof, not a license. You fill it out, sign it and hand it to each supplier. The supplier files it to show the state why it didn't charge you tax, and the Texas Comptroller calls it "the seller's evidence" for that sale.

Any document can work as a certificate in California if it carries four elements set by Regulation 1668:

Who you are: Your business name and address.
Your permit number: The number of the sales tax permit (seller's permit) your state issued you.
What you're buying: The phrase "for resale" plus a list or general description of the items. Words like "exempt" or "non-taxable" don't count.
Your signature: Signed by you, an employee or an authorized representative, with the date.

Is a resale certificate the same as a seller's permit?

No. The state issues the seller's permit, and you issue the resale certificate. Get the permit first, because its number goes on every certificate you send.

Document	Who issues it	What it does
Seller's permit (sales tax permit)	Your state tax agency	Lets you sell taxable goods and requires you to collect sales tax
Resale certificate	You, on your state's form	Lets you buy inventory from suppliers without paying sales tax
Exemption certificate	A buyer with a non-resale reason	Covers exempt buyers such as nonprofits, government agencies or manufacturers

Some states call the permit a "resale license" or "reseller's permit," which is where the mix-up starts. Texas is blunt about it: a copy of your permit is not a substitute for a resale certificate. If you're still setting up the business, the permit step is covered in how to start a retail business.

How does a resale certificate work?

A resale certificate moves sales tax from your purchase to your customer's purchase. The state still collects once, at the final sale.

Suppose a gift shop in a Texas city at the state's maximum combined rate of 8.25% buys $4,000 of mugs from a wholesaler. With a certificate on file, it pays no tax on the order and keeps $330 in cash. It prices with keystone, doubling the cost as shown in how to price a product, sells the mugs for $8,000 and collects $660 in tax from customers.

Flow showing $4,000 of inventory bought tax-free, $330 kept, $8,000 in retail sales and $660 in sales tax collected at 8.25%

Skip the certificate and you prepay that $330, then claim it back later. California handles this with a deduction for tax-paid purchases resold before use, one more line to track on every return.

How do you get a resale certificate?

1. Register with your state: Apply with your state tax agency. Texas tells applicants to allow 2 to 3 weeks for the permit.
2. Note your permit number: Every certificate needs it. Keep it handy for supplier account forms.
3. Download your state's form: Texas uses Form 01-339. Florida sends its certificate when you register, so there's no form to request.
4. Send it before you're billed: California treats a certificate as timely if the supplier gets it before billing or at delivery. A late one doesn't apply retroactively.
5. Keep a copy: File a copy for each supplier so you know who has a current certificate.
What it costs: California and Texas charge no fee for the permit, but either state can require a security deposit or bond.

Which resale certificate form does your state use?

Use your state's own form with in-state suppliers and a multistate form when you buy across state lines. These are local examples, not nationwide rules, so confirm the current form with the tax agency for your address.

State or system	Form	What to know
Texas	Form 01-339	A blanket certificate works if you buy only for resale
California	CDTFA-230	Stays in effect until you revoke it in writing
Florida	Form DR-13	Issued when you register and expires every December 31
Multistate	MTC Uniform Resale Certificate	Lists 38 states, latest revision October 14, 2022
Streamlined states	SSTGB Form F0003	Accepted by all 24 member states

Alaska, Delaware, Montana, New Hampshire and Oregon have no statewide sales tax. Alaska is the exception that still allows local sales taxes, so a shop there checks with its city before buying tax-free.

What can you buy with a resale certificate?

Buy only items you will resell, or that become part of a product you sell. Everything you use to run the business stays taxable.

Decision tree with three questions that show when you can buy an item with a resale certificate and when you owe tax

Qualifies: Finished goods you resell, materials that become part of a product you sell, and items you only display or demonstrate while they're for sale (CDTFA Publication 103).
Doesn't qualify: Office supplies, cleaning products, shelving, equipment and anything for personal use.
Mixed orders: Tell the supplier which items are for resale. Texas requires buyers to mark them clearly.
Plans changed: Pulled an item out of stock to use it? You owe tax on it. Texas gives the example of a broom taken from inventory to sweep the store and lets you report it as a taxable purchase on your return.

Sourcing from more than one channel? The clothing resale guide compares thrift, estate sales and wholesale pallets. Send your certificate to every wholesale supplier before the first order.

Does a resale certificate expire?

Some do and some don't, so refresh every supplier's certificate each January. That one habit covers the strictest rules below.

Florida: Expires December 31 each year. E-filers print the new one, and paper filers get it by mail in mid-November.
California: Stays in effect until you revoke it in writing.
Streamlined form: A blanket certificate stays effective until you cancel it, as long as your purchases are no more than 12 months apart.
Michigan and Illinois: The multistate form notes Michigan blanket certificates last four years, and Illinois wants them updated at least every three.

What happens if you misuse a resale certificate?

You pay the tax you skipped plus penalties, and in some states misuse is a crime. Suppose you use a California certificate to buy a $1,200 laptop for your office. At the 7.25% statewide rate you owe $87 in tax plus a penalty of 10% of the tax or $500, whichever is greater, per Regulation 1668. That single purchase costs $587.

Texas treats misuse as a criminal offense at every amount, scaled to the tax evaded:

Tax evaded	Offense in Texas
Less than $20	Class C misdemeanor
$20 to less than $200	Class B misdemeanor
$200 to less than $750	Class A misdemeanor
$750 to less than $20,000	Third-degree felony
$20,000 or more	Second-degree felony

Source: Texas Comptroller of Public Accounts, Resale Certificates FAQ.

What should you check when a customer gives you a resale certificate?

If you sell wholesale, check every certificate before you drop the tax. In California, a seller who takes a valid certificate in good faith and on time doesn't owe tax on that sale.

Complete form: Every field filled in, signed and dated, with the phrase "for resale."
Fits their business: A service station buying a sofa should raise a flag. Texas tells sellers to question purchases the buyer wouldn't normally resell.
Active permit: Look up the number with the state. Texas runs a free Sales Tax Permit Search.
Kept on file: Texas sellers keep certificates for four years to back up every tax-free sale.

Selling at markets as well? The street vendor license guide lists the local permits that sit alongside your sales tax registration.

How do you charge sales tax when you resell?

Add sales tax to every taxable sale at checkout, because that's the moment the certificate pays off. In the gift shop example, $330 that stayed in the bank turns into $660 you collect from customers and send to the state.

In JIM, tap Add sales tax on the Current sale and confirm the new total before you charge. Tap to Pay costs 1.99% per sale with no monthly fee, and the money lands in your JIM balance in seconds, so the tax you owe is there when your return is due.

Frequently Asked Questions

Do I need a resale certificate to buy wholesale?

You need one to buy wholesale without paying sales tax. A supplier that doesn't have your certificate on file has to charge you tax on the order.

How much does a resale certificate cost?

The certificate itself is a free form. California and Texas also charge nothing for the sales tax permit you need first, though either state can ask for a security deposit or bond.

Can I use my resale certificate in another state?

Only where that state accepts it. The multistate certificate lists 38 states and the Streamlined form covers 24, so check the supplier's state before you send one.

Is a resale certificate the same as an EIN?

No. An Employer Identification Number is a free federal ID from the IRS. A resale certificate carries your state sales tax permit number, which is a separate registration.

Can I use a resale certificate for personal purchases?

No. In California, each misused purchase costs the tax plus a penalty of 10% of the tax or $500, whichever is greater, and intentional misuse can lead to prosecution.

Do online sellers need a resale certificate?

Yes, if you buy inventory to resell. The rules are the same as for a physical store, and you register in each state where you have sales tax nexus.

How long does it take to get a resale certificate?

The permit takes the longest. Texas tells applicants to allow 2 to 3 weeks, and once you have the number you can fill out the certificate the same day.