Publication 125, Dry Cleaners

This publication provides an overview of how California sales and use tax laws apply to dry cleaning businesses. It explains when dry cleaners are considered consumers versus retailers, outlines when permits are required, and clarifies how tax applies to services, supplies, alterations, and merchandise sales. It also describes available resources to help businesses understand and comply with tax requirements.

More specifically, the publication details tax rules for purchases such as supplies and materials, including use tax obligations and criteria for “qualified purchasers.” It explains when a seller’s permit is required, how tax applies to new versus used clothing or household item alterations, and how Regulation 1506, Miscellaneous Service Enterprises, determines whether cleaners are consumers or retailers of alteration services. It concludes with guidance on obtaining permits, reporting tax, and accessing CDTFA support services.

If you need help

If you need assistance with topics in this publication, call our Customer Service Center at 1-800-400-7115 (TTY:711) or chat with us. Customer service representatives are available to assist you Monday through Friday from 7:30 a.m. to 5:00 p.m. (Pacific time), except state holidays. You may also email us.

Please note: This publication summarizes the law and applicable regulations in effect when the publication was written. However, changes in the law or in regulations may have occurred since that time. If there is a conflict between the information in this publication and the law or regulations, decisions will be based on the law or regulations and not on this publication.

Revision September 2026