You finish a job—replace a water heater, repair a broken line, install new fixtures. You invoice the customer. Then the question hits: what part of that invoice is taxable? As a plumber in Florida, you’re not paying tax on your labor, but you’re collecting it on parts. Except sometimes you’re not sure what counts as a “part,” or whether the customer paid you a lump sum that changes everything. Get this wrong on your Florida Department of Revenue filings, and you’re either underpaying (audit risk) or overpaying (cash you don’t get back). This guide walks you through exactly what the state taxes, how the rate stacks up, and how to file it correctly on Form DR-15.
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Does this apply to your business in Florida?
Yes, if you’re a plumbing contractor or plumber in Florida. Here’s the rule: labor you perform is not taxable. Materials, fixtures, and parts you provide are taxable. If a customer pays you a single lump sum for the whole job with no itemization, that entire amount is taxable. The Florida Department of Revenue requires you to separate labor from materials on your invoices and DR-15 filings to report accurately.
How the rate works
Florida’s sales tax is built in two layers: a state rate and a county surtax. The state charges 6% on all taxable sales statewide. On top of that, your county adds its own surtax—the rate varies by county. Some counties add 0.5%, others add more. Your combined rate is the 6% state rate plus your specific county surtax. You don’t calculate this yourself; you look up the combined rate for your county or use the Florida Department of Revenue tax rate calculator to find today’s number. That combined rate is what you charge on taxable materials and parts.
When you invoice a customer, you show labor (not taxed) on one line and materials (taxed at the combined rate) on another. The tax collected goes to the state and your county. You report all of it on your monthly or quarterly DR-15 filing, depending on your filing frequency.
How to file step by step
Filing your sales tax on Form DR-15 follows a straightforward process. First, gather your invoices for the filing period—usually one month if you file monthly, or three months if you file quarterly. Separate your taxable sales (materials and parts) from non-taxable sales (labor). Add up the total taxable sales for the period. Multiply that total by your combined state and county sales tax rate. That’s your tax liability for the period.
Next, open the Florida Department of Revenue website and log into your sales tax account (you’ll need your sales tax number, issued when you registered). Navigate to the DR-15 form section. Enter your total sales, your taxable sales, the tax rate, and the amount of tax you collected. If you had any allowable deductions or exemptions (rare for most plumbers but possible in specific cases), you’d note those here. Review your numbers. Submit the form by the 20th of the month following your filing period—so if you filed for January, you submit by February 20th. If you file quarterly, the deadline is the 20th of the month after the quarter ends.
Pay any tax due at the same time. If you’ve already collected the tax from customers, you remit what you owe. The system tracks your account; if you overpay one month, the credit carries forward. Step-by-step walkthroughs of the filing screens are available here so you can follow along with the actual website.
Common mistakes
Mistake 1: Treating the entire lump-sum invoice as non-taxable. You quoted a customer $3,500 to replace their entire plumbing system. They paid $3,500 as one charge, no breakdown. Many plumbers assume labor is non-taxable and call the whole job non-taxable. Wrong. If you didn’t separate labor from materials on the invoice, the entire amount is taxable in Florida. Fix: always itemize. Show labor at one rate and materials at another, even on the same invoice. If you’ve already collected the lump sum, you still owe tax on the materials portion—back-calculate it based on the cost of parts plus a reasonable markup.
Mistake 2: Taxing labor. You perform two hours of work unclogging a drain and charge $200 for labor, plus $40 for the drain cleaner chemical (material). You mistakenly tax both. Labor is never taxable in Florida. Only the $40 is taxable. Fix: establish a consistent invoice template that clearly labels labor and materials. Train yourself (or your staff) to only apply the sales tax rate to the materials line.
Mistake 3: Using last year’s county tax rate. You know your county’s combined rate was 6.5% in 2025, so you charge 6.5% on all 2026 invoices. Rates can change. If your county raised the surtax to 6.75%, you’re undercollecting and will owe the difference when you file. Fix: check the Florida Department of Revenue tax rate calculator at the start of each year or whenever you know there’s been a rate change in your county. Bookmark it for quick reference.
Mistake 4: Not keeping records of which invoices were taxable and which weren’t. You file your DR-15 based on memory or a rough total, and three months later, the state asks for backup. You can’t find your itemized invoices and look unprepared or unreliable. Fix: save every invoice in a folder (digital or physical) organized by month. Before you file, review the month’s invoices and manually add up taxable sales and non-taxable labor. This takes 10 minutes and gives you confidence your filing is accurate.
Frequently Asked Questions
What counts as a “material” I have to tax?
Anything physical you supply to the customer: PVC pipe, fittings, fixtures, valves, solder, copper tubing, water heaters, faucets, and drain cleaners. If it’s tangible and leaves your job site attached to or used by the customer, it’s taxable. Labor—your time, expertise, travel—is not.
Do I have to collect sales tax if the customer is another business?
Yes, unless the customer provides you with a valid Florida resale certificate. If they do, you don’t collect sales tax on materials (because they’re buying for resale, not for use). Always ask commercial customers for their resale certificate before you invoice. If they don’t have one, you tax the materials.
What if I charged sales tax but never collected it?
You still owe it to Florida. Sales tax is due whether you collected it from the customer or not. That’s why it’s critical to itemize on your invoice and collect the tax upfront. If you missed it, you’ll need to remit it from your own funds when you file. This is another reason to keep itemized invoices.
Can I deduct the cost of materials from my taxable sales?
No. You only report taxable sales (materials sold to the customer) and the tax owed on them. You don’t deduct your cost of goods sold on the DR-15. Your income tax return handles cost of goods sold separately.
What if I’m unsure whether something is taxable?
Call the Florida Department of Revenue or check their website for taxability guidance specific to your situation. You can also contact a CPA familiar with Florida contractor rules. It’s better to ask before you file than to guess and file incorrectly.
This article is for general educational purposes and isn’t a substitute for advice from a licensed CPA or tax attorney. Rules vary by jurisdiction and change over time — always confirm current requirements with the Florida Department of Revenue or your advisor.
Your plumbing business grows when you spend time on jobs, not on tax guesswork. Getting your taxable and non-taxable sales straight from the start means your DR-15 filings are accurate, your relationship with the state stays clean, and you know exactly what to set aside each month. Build the habit: itemize every invoice, separate labor from materials, file on time. Start with one filing period and you’ll see it’s straightforward. Outsourcing Processing can help organize your sales data and prepare your categorized reports for your CPA, so you stay in control while keeping your back office lean.
This article is for general educational purposes and isn’t a substitute for advice from a licensed CPA or tax attorney. Rules vary by jurisdiction and change over time — always confirm current requirements with the Florida Department of Revenue or your advisor.
For the Florida-specific rules behind this, our Florida sales tax guide breaks down rates, deadlines, and filing steps county by county.