Resale Certificate 2026: What It Is and How to Get One in Your State
Short answer: a resale certificate lets you buy inventory without paying sales tax, because the tax will be charged later when you sell to the end customer. To get one, register for a sales tax permit in your state first, then fill in your state’s resale form and give a copy to each supplier. Florida and Washington issue the certificate to you instead. Use it only for things you will actually resell.
This guide is for small businesses buying stock to resell: Shopify and Etsy sellers buying blanks or wholesale goods, Amazon sellers buying inventory, and dropshippers. If you’re the supplier receiving certificates from customers, read Tax-Exempt Certificates: A Guide for Sellers instead.
Do you need a resale certificate? Find your situation
Section titled “Do you need a resale certificate? Find your situation”| Your situation | Do you need one? | What to do |
|---|---|---|
| You buy goods to resell, and your supplier charges you sales tax | Yes | Register for a sales tax permit, then give the supplier your state’s resale form |
| You buy materials that become part of a product you sell (blank tees, beads, fabric) | Yes | Same as above. Ingredients and components count as resale in almost every state |
| You buy supplies, tools or equipment for your business | No | Pay the tax. A resale certificate doesn’t cover them |
| Your supplier is out of state and doesn’t charge your state’s tax | Usually not | If the supplier has no nexus in your state, it won’t charge tax anyway |
| You sell only through Etsy, Amazon or eBay | Usually yes | The marketplace collects tax on your sales, not on your purchases. See marketplace sellers |
| Your supplier ships direct to your customers in other states (dropshipping) | Yes, per state | Use the MTC or SST multistate form, or your home-state number where accepted. See dropshipping |
| You buy something for personal use | Never | Using a resale certificate here is misuse, with penalties |
The rule behind every row: sales tax is meant to be paid once, by the final consumer. The resale certificate is how a business in the middle of the chain proves it isn’t the final consumer.
What is a resale certificate?
Section titled “What is a resale certificate?”A resale certificate is a signed statement from a buyer to a seller saying: “I’m buying this to resell it, so don’t charge me sales tax.” The seller keeps it on file. If the state audits the seller, the certificate is the proof of why no tax was collected on that sale.
States call it different things: resale certificate, reseller’s permit, certificate of resale, sales tax exemption certificate, or simply “the form”. They all do the same job. Two points trip people up:
- It’s not automatic. Being a business doesn’t make your purchases tax-free. You have to give each supplier a completed certificate, ideally before the first order.
- It’s not a reverse charge. Unlike VAT, US sales tax has no credit system. If you pay sales tax on inventory, that tax is a cost to you. You can’t deduct it from the tax you collect from customers in most cases, so getting the certificate right saves real money.
Resale certificate vs seller’s permit
Section titled “Resale certificate vs seller’s permit”| Seller’s permit (sales tax permit) | Resale certificate | |
|---|---|---|
| What it is | Your registration with the state tax agency | A form you give to your suppliers |
| Who issues it | The state | Usually you, the buyer (Florida and Washington issue one) |
| What it lets you do | Collect sales tax from your customers and file returns | Buy inventory without paying sales tax |
| Who keeps it | You | Your supplier |
| Cost | Free in most states | Free |
In most states the resale form asks for your sales tax permit number, so the permit comes first. See how to get a seller’s permit for what each state calls it and what it costs. California, for example, requires a seller’s permit number or an explanation of why you don’t need one. Texas, New York and Illinois likewise expect a registration number on the certificate. Registration details for every state are in the state sales tax index.
Who qualifies for a resale certificate
Section titled “Who qualifies for a resale certificate”You can usually issue a resale certificate if:
- You’re in the business of selling the kind of item you’re buying. A candle maker buying wax and wicks qualifies. A candle maker buying a laptop doesn’t.
- You’ll resell the item in the regular course of business, either as it is or as an ingredient or component of something you sell.
- You’re registered for sales tax in the state (or the state accepts another number, covered below).
Contractors are the main exception. Many states, including Kansas, Nevada, Vermont and New Jersey, say contractors can’t use a resale certificate for materials they install, because the contractor is treated as the consumer.
How to get a resale certificate in 4 steps
Section titled “How to get a resale certificate in 4 steps”- Register for a sales tax permit in the state where you’re based (and anywhere else you have nexus). This is free in most states. Your state’s GoodVat guide links to the registration portal.
- Find your state’s form in the table below. In most states it’s a PDF you fill in yourself.
- Fill it in for each supplier, with your permit number, a description of what you sell and what you’re buying. Tick “blanket” if you’ll buy from them regularly.
- Send it to the supplier and keep a copy. Never send it to the state. Your supplier then removes tax from your invoices.
If you already pay sales tax on stock and plan to apply for a permit, ask each supplier to stop charging tax from the next order once they have your certificate. A certificate generally doesn’t make earlier purchases tax-free: in California, for example, a certificate taken late doesn’t apply retroactively.
Resale certificate forms by state
Section titled “Resale certificate forms by state”These are the official forms for the 12 biggest sales tax states. “Buyer fills in” means you download the form and complete it for each supplier. “State issues” means the state sends you a certificate once you’re registered.
| State | Official form | Who provides it | Key rule | Official source |
|---|---|---|---|---|
| California | CDTFA-230, General Resale Certificate | Buyer fills in | Any document works if it has all required elements and the words “for resale” | CDTFA-230 (PDF) |
| Texas | Form 01-339, Texas Sales and Use Tax Resale Certificate (front) | Buyer fills in | Texas permit, out-of-state permit, or Mexican RFC number. Resale must be in the US or Mexico | Comptroller forms |
| New York | Form ST-120, Resale Certificate | Buyer fills in | Buyer must hold a NY Certificate of Authority (Part 2 covers unregistered out-of-state buyers for drop shipments) | ST-120 (PDF) |
| Florida | Form DR-13, Annual Resale Certificate for Sales Tax | State issues | Expires December 31 every year. Seller verifies it with the Department of Revenue | FDOR resale certificate |
| Illinois | Form CRT-61, Certificate of Resale | Buyer fills in | Needs an Illinois account ID or resale number. Update blankets at least every 3 years | IDOR certificate of resale |
| Pennsylvania | REV-1220, Pennsylvania Exemption Certificate | Buyer fills in | Tick box 3 (resale) and enter your 8-digit PA sales tax license number | REV-1220 (PDF) |
| Ohio | STEC B (blanket) or STEC U (single purchase) | Buyer fills in | Must state the exemption reason, or the certificate is disallowed on audit | Ohio exemption certificates |
| Georgia | Form ST-5, Sales Tax Certificate of Exemption | Buyer fills in | Needs a Georgia sales tax number. Georgia sellers must verify it | ST-5 (PDF) |
| North Carolina | Form E-595E, Streamlined Sales and Use Tax Certificate of Exemption | Buyer fills in | North Carolina uses the SST certificate as its own form | NCDOR E-595E |
| Michigan | Form 3372, Michigan Sales and Use Tax Certificate of Exemption | Buyer fills in | Blanket certificates last up to 4 years | Form 3372 (PDF) |
| Washington | Reseller Permit | State issues | Only for Washington-registered businesses. Generally valid 4 years | WA DOR reseller permits |
| New Jersey | Form ST-3, Resale Certificate | Buyer fills in | Buyer must hold a NJ Certificate of Authority. Form ST-SST also accepted | ST-3 (PDF) |
Searching for “form ST3”? Two states use that name. New Jersey’s ST-3 is the resale certificate above. Minnesota’s Form ST3 is its general Certificate of Exemption, which covers resale (reason H) as well as nonprofit, government and other exemptions.
For every other state, find your state in the state sales tax index. Most of the remaining states accept one of the multistate certificates.
How to fill in a resale certificate
Section titled “How to fill in a resale certificate”The fields are similar on every form. A certificate missing any required field is invalid, and the supplier should refuse it.
| Field | What to enter | Tip |
|---|---|---|
| Your business name and address | Legal name and the address on your permit | Must match your registration |
| Your permit or registration number | Your state sales tax ID | The most common reason certificates are rejected is a missing or wrong number |
| Type of business | e.g. “online retailer of printed apparel” | Be specific. It’s how the supplier judges good faith |
| Description of items | e.g. “blank cotton T-shirts and tote bags for resale” | Texas and California require this |
| Supplier’s name and address | Who you’re buying from | Some states (New Jersey) don’t require it, most do |
| Blanket or single purchase | Tick one | See the next section |
| Signature, title and date | An owner or officer | Electronic certificates without a signature are accepted in SST states |
California adds one wording rule: the document must say the goods are bought “for resale”. Words like “exempt” or “nontaxable” aren’t acceptable.
Blanket vs single-purchase certificates
Section titled “Blanket vs single-purchase certificates”- Blanket certificate: covers every future purchase from that supplier. Use it for regular suppliers when everything you buy from them is for resale.
- Single-purchase certificate: covers one invoice or order. Use it for a one-off order, or when you buy a mix of resale stock and supplies from the same supplier.
Blanket certificates don’t last forever everywhere. Under the Streamlined Sales Tax certificate, a blanket stays valid while you buy from the supplier at least once every 12 months. Michigan caps blankets at four years, and Illinois expects them updated at least every three years. If you buy both stock and supplies from one supplier, use single-purchase certificates for the resale orders. Illinois also lets a blanket certificate state the percentage of purchases that are for resale.
Worked example: an Etsy and Shopify seller buying blanks
Section titled “Worked example: an Etsy and Shopify seller buying blanks”Maya runs a print-on-demand apparel shop from Austin, Texas. She sells on her own Shopify store and on Etsy. She buys $5,000 of blank T-shirts and hoodies from a Texas wholesaler for the holiday season.
Austin’s combined sales tax rate is 8.25% (6.25% Texas state plus 2% local, the Texas maximum).
| Without a resale certificate | With a resale certificate | |
|---|---|---|
| Blanks | $5,000.00 | $5,000.00 |
| Sales tax charged by wholesaler (8.25%) | $412.50 | $0.00 |
| Maya pays | $5,412.50 | $5,000.00 |
She saves $412.50 on one order. If she places a similar order every quarter, that’s $1,650 a year, which on a small apparel shop can be a large share of profit.
What she still pays tax on:
- A $600 heat press is equipment she uses, not resells. She pays 8.25% tax: $49.50.
- Printer ink and cleaning supplies are consumed in her business, so they’re taxable too.
What happens when she sells: on Shopify orders to Texas customers, Maya collects 8.25% and files it on her Texas return. On Etsy orders, Etsy collects the tax as the marketplace facilitator. Either way, the tax is paid once, by the person who wears the hoodie.
To get there, Maya registers for a Texas sales and use tax permit (free), fills in Form 01-339 with her permit number and “blank apparel for printing and resale”, ticks it as a blanket certificate, and emails it to the wholesaler before her next order.
What you can’t use a resale certificate for
Section titled “What you can’t use a resale certificate for”A resale certificate covers items you resell. It doesn’t cover items your business uses. Common mistakes:
| Purchase | Can you use a resale certificate? | Why |
|---|---|---|
| Inventory you resell as is | Yes | Classic resale |
| Materials that become part of your product (fabric, beads, blanks) | Yes | Ingredient or component of a product for sale |
| Office supplies, computers, software for your business | No | You’re the end user |
| Equipment and tools (heat press, sewing machine, 3D printer) | No | You’re the end user |
| Display fixtures, shelving, mannequins | No | Used in the business, not sold. New Jersey names display cases as an example |
| Samples and giveaways | No | In most states, items given away are used by you. Tennessee, for example, says tax is due on anything given away |
| Packaging and shipping supplies | It depends | Some states treat packaging that goes to the customer as resale, others don’t. Check your state |
| Anything for personal use | Never | This is misuse |
If you bought something tax-free for resale and later use it yourself (you take a hoodie from stock and wear it), you owe use tax on it. You report that on your sales tax return. Florida spells this out, and most states work the same way.
Penalties for misusing a resale certificate
Section titled “Penalties for misusing a resale certificate”States take misuse seriously, because it’s tax evasion. A few examples from official sources:
| State | Penalty for misuse |
|---|---|
| California | The tax due plus a penalty of 10% of the tax or $500, whichever is more, for each purchase. Can also be a misdemeanor (CDTFA Publication 103) |
| Texas | Criminal offense from a Class C misdemeanor (under $20 of tax) up to a second-degree felony ($20,000 of tax or more) (Texas Comptroller) |
| New York | A penalty of 100% of the tax due, $50 per fraudulent certificate, possible felony prosecution and loss of your Certificate of Authority (ST-120) |
| Minnesota | $100 fine for each transaction the certificate is misused on (Form ST3) |
| North Carolina | $250 penalty for using Form E-595E on items bought for use rather than resale (NCDOR) |
| Florida | Criminal and civil penalties for fraudulent use of an Annual Resale Certificate (FDOR New Dealer Guide) |
Honest mistakes are treated differently from fraud, but you’ll still owe the tax plus interest. If in doubt, pay the tax at purchase.
Multistate resale certificates: MTC and SST
Section titled “Multistate resale certificates: MTC and SST”If you buy from suppliers in many states, or your supplier ships to customers in many states, two uniform certificates save you filling in a different form for each state.
MTC Uniform Sales & Use Tax Resale Certificate
Section titled “MTC Uniform Sales & Use Tax Resale Certificate”The Multistate Tax Commission’s Uniform Sales & Use Tax Resale Certificate (Multijurisdiction) is a single form with a row for each participating state. The current version was revised on October 14, 2022.
- Who accepts it: the form lists 37 states plus Alaska’s Remote Seller Sales Tax Commission: AL, AR, AZ, CA, CO, CT, FL, GA, HI, ID, IL, IA, KS, KY, ME, MD, MI, MN, MO, NE, NV, NJ, NM, NC, ND, OH, OK, PA, RI, SC, SD, TN, TX, UT, VT, WA and WI. The MTC’s own page describes it as 36 states.
- Not listed: New York, Massachusetts, Virginia, Louisiana, Mississippi, Indiana, West Virginia, Wyoming and DC. For New York, use ST-120.
- Resale only. It can’t be used for nonprofit, manufacturing or other exemptions.
The state notes on pages 2 to 6 of the form matter. The ones that catch small sellers:
| State | Caveat on the MTC certificate |
|---|---|
| Florida | The seller must also get an authorization number from the Department of Revenue using your Florida Annual Resale Certificate number |
| Illinois | Only an Illinois registration or resale number is accepted. No other state’s number |
| Maryland, Kansas | Must show the state’s own registration number |
| Pennsylvania | Needs your PA license number, or an explanation of why you don’t have one |
| California, Connecticut, Kentucky, Nevada | Valid as a resale certificate only, not as an exemption certificate |
| Colorado | May not be accepted by self-collecting home-rule cities |
| Maine | Not valid for manufacturers buying components. Use Maine’s ST-A-117 |
| Texas | Goods must be resold in the US, its territories or possessions |
Streamlined Sales Tax (SST) Certificate of Exemption
Section titled “Streamlined Sales Tax (SST) Certificate of Exemption”The SST Certificate of Exemption (Form F0003, revised 12/21/2021) is accepted by all 24 SST states: the 23 full members (AR, GA, IN, IA, KS, KY, MI, MN, NE, NV, NJ, NC, ND, OH, OK, RI, SD, UT, VT, WA, WV, WI, WY) plus associate member Tennessee. You don’t need to be registered through the SST registration system to use it.
What makes it useful for resellers is the ID number rule. If you’re claiming resale in an SST state where you aren’t registered, you can enter the sales tax number issued by any state. If you aren’t registered anywhere, you can use your FEIN. That makes it the easiest form for dropshippers and marketplace sellers registered in only one state.
The SST certificate covers more than resale (government, nonprofit, manufacturing and more), which is why the seller’s guide to exemption certificates goes into it in more detail. For SST registration itself, see the Streamlined Sales Tax guide.
Which multistate form should you use?
Section titled “Which multistate form should you use?”| MTC Uniform Resale Certificate | SST Certificate of Exemption | |
|---|---|---|
| States | 37 + Alaska ARSSTC | 24 |
| Covers California, Texas, Florida, Illinois, Pennsylvania | Yes (with caveats) | No, they aren’t SST members |
| Covers Indiana, West Virginia, Wyoming | No | Yes |
| Covers New York | No | No |
| Exemptions | Resale only | Resale and other exemptions |
| Out-of-state ID accepted | Depends on the state note | Yes, any state’s number |
In practice, many multistate sellers keep both on file with each supplier, plus a New York ST-120 if they buy for resale in New York.
Using your home-state certificate in another state
Section titled “Using your home-state certificate in another state”Suppose you’re registered in Ohio and buy from a supplier in another state. Whether the supplier will accept your Ohio number depends on where the goods are delivered:
| State where goods are delivered | Will it accept an out-of-state buyer? |
|---|---|
| Texas | Yes. Form 01-339 accepts your home-state registration number (or a Mexican RFC) |
| California | Yes, with an explanation of why you don’t need a California permit (for example, an out-of-state retailer not engaged in business in California) |
| Georgia | Yes, for drop shipments, if you have no nexus in Georgia: your home-state certificate or the MTC certificate with your home-state number |
| SST states | Yes. The SST certificate takes a number from any state |
| New York | Only for drop shipments, using Part 2 of ST-120, if you aren’t required to register in New York |
| Illinois | No. Illinois requires an Illinois account ID or resale number |
| Washington | Reseller permits are only for Washington-registered businesses. Out-of-state buyers use the SST or MTC certificate instead |
| Florida | Strict. Without a Florida certificate, the supplier needs your signed statement that you’ll transport the goods out of Florida for resale (Rule 12A-1.0015(3)) |
If goods are shipped to you in your home state, the supplier’s state usually doesn’t tax the sale at all, so the question is really whether your home state needs a certificate. Give the supplier your home-state form.
Dropshipping and resale certificates
Section titled “Dropshipping and resale certificates”Dropshipping creates the classic resale certificate headache. You (the retailer) sell to a customer in State A. Your supplier ships directly to that customer. If your supplier has nexus in State A, it’s making a sale delivered into State A, and that state wants either tax or proof the sale was for resale.
- If you’re registered in State A, give the supplier your State A resale certificate. Done.
- If you aren’t registered in State A, the supplier needs a certificate State A will accept from an unregistered buyer. The SST certificate is designed for this: its instructions say a drop shipper can accept a number from another state. Texas, California, Georgia and New York (Part 2) accept out-of-state buyers in many drop-ship cases too.
- If State A won’t accept it (Illinois, for example, wants its own number), the supplier may charge you that state’s tax. You can’t pass it on as a separate line to your customer, so it becomes a cost.
California adds a twist: a seller registered in California that drop ships for an unregistered retailer can be treated as the retailer, depending on the facts. If you dropship into a big state at volume, register there and give your supplier a proper certificate.
Marketplace sellers: Etsy, Amazon and eBay
Section titled “Marketplace sellers: Etsy, Amazon and eBay”Marketplace facilitator laws mean Etsy, Amazon and eBay collect sales tax on your sales in almost every state. That doesn’t help with your purchases. Your supplier will still charge you tax on inventory unless you give them a resale certificate.
The catch: some states don’t require marketplace-only sellers to register. California is the clearest example. Since October 1, 2019, if all your California sales go through a registered marketplace facilitator, you don’t need a seller’s permit. But you can still issue a resale certificate: CDTFA says to write that no permit is required because all your sales are facilitated by a registered marketplace, and to give the marketplace’s permit number. If you also sell through your own website, that exception stops applying and you need a permit.
Amazon FBA sellers have a second issue: inventory stored in a state’s warehouse creates physical nexus there. See Amazon FBA and physical nexus.
Foreign sellers
Section titled “Foreign sellers”Non-US businesses buying US inventory to resell (for example, to stock an FBA warehouse) can use resale certificates too, with limits:
- SST states: the SST certificate lets a foreign buyer with no US state number enter its home-country tax number (such as a VAT number) in 13 states: AR, IN, KS, KY, ND, NJ, OK, RI, SD, TN, UT, WA and WY. Other SST states require a US ID.
- Texas: Mexican retailers can use their RFC number and must give the seller a copy of their Mexican registration. Texas resale certificates only cover resale in the US or Mexico.
- New York: Part 2 of ST-120 accepts buyers registered in another country, for drop shipments only.
- Everywhere else: you’ll usually need a US state registration, which means an EIN first. The foreign sellers guide covers the steps.
If the goods are exported to you outside the US, the sale is usually not taxable in the first place, so no resale certificate is needed. Keep the shipping records.
Resale certificate checklist
Section titled “Resale certificate checklist”- Register for a sales tax permit in your home state, and in any state where you have nexus.
- Download the right form for each state you buy in, or use the MTC or SST multistate certificate where accepted.
- Fill in every field, especially your permit number and a specific description of what you sell and buy.
- Choose blanket or single purchase, and give one certificate to each supplier before you order.
- Use it only for resale stock and components. Pay tax on supplies, equipment and anything you keep.
- Report use tax on resale items you end up using yourself.
- Track renewals: Florida every year, Washington every four years, Michigan blankets at four years, Illinois blankets every three years.
What is a resale certificate?
Section titled “What is a resale certificate?”A resale certificate is a document you give a supplier to buy inventory without paying sales tax, because you will resell it and collect tax from your own customer. It is also called a reseller’s permit, certificate of resale or sales tax exemption certificate for resale. The supplier keeps it on file to prove why it didn’t charge you tax.
How do I get a resale certificate?
Section titled “How do I get a resale certificate?”First register for a sales tax permit in your state, because almost every resale form asks for that number. Then either download your state’s form and fill it in for each supplier (most states), or use the certificate the state issues you (Florida and Washington). Registration is free in most states.
Is a resale certificate the same as a seller’s permit?
Section titled “Is a resale certificate the same as a seller’s permit?”No. A seller’s permit (sales tax permit) is your registration with the state, and it lets you collect sales tax from customers. A resale certificate is a form you hand to suppliers so you don’t pay tax on inventory. In most states you need the permit before you can issue a valid resale certificate.
Can I use my resale certificate in another state?
Section titled “Can I use my resale certificate in another state?”Often, but not everywhere. Texas, California and Georgia accept an out-of-state buyer’s home-state number in many cases, and the 24 Streamlined Sales Tax states accept a number from any state on the SST certificate. Illinois and Florida generally want their own registration, and New York accepts unregistered out-of-state buyers only for drop shipments.
Do resale certificates expire?
Section titled “Do resale certificates expire?”It depends on the state. Florida’s Annual Resale Certificate expires every December 31, Washington reseller permits generally last four years, and Michigan blanket certificates last up to four years. California certificates stay valid until revoked, while Illinois asks for blanket certificates to be updated at least every three years.
Can I use a resale certificate for supplies or personal purchases?
Section titled “Can I use a resale certificate for supplies or personal purchases?”No. A resale certificate only covers items you will resell or that become part of a product you sell. Office supplies, equipment, tools, display fixtures and anything for personal use are taxable. Misusing a certificate can bring penalties per purchase and, in states like Texas and California, criminal charges.
Do Etsy and Amazon sellers need a resale certificate?
Section titled “Do Etsy and Amazon sellers need a resale certificate?”Usually yes, if you buy inventory or materials wholesale. The marketplace collects sales tax on your sales, but that does nothing about the tax your supplier charges you. Some states, such as California, let marketplace-only sellers issue a resale certificate without their own permit if they explain why and give the marketplace’s permit number.
How do I get a California resale certificate?
Section titled “How do I get a California resale certificate?”Register for a California seller’s permit with the CDTFA first. It’s free. Then fill in Form CDTFA-230, the General Resale Certificate, for each supplier and give it to them. You don’t send it to the CDTFA. Any document works if it has all the required details and says the goods are bought for resale.
What is a Washington reseller permit?
Section titled “What is a Washington reseller permit?”Washington doesn’t use resale certificates. The Department of Revenue issues a reseller permit to Washington-registered businesses that buy goods to resell, and you give a copy to your suppliers. It’s generally valid for four years, or two for contractors and businesses open less than 12 months. Out-of-state buyers use the SST or MTC multistate certificate instead.
Related guides
Section titled “Related guides”- Seller’s permits: register for sales tax before you issue resale certificates
- Tax-exempt certificates: a guide for sellers: what to do when customers send you resale and exemption certificates
- Streamlined Sales Tax: one registration for 23 states, and the SST certificate
- State sales tax index: rates, thresholds and registration for every state
- US sales tax for e-commerce sellers: nexus, marketplaces and the full picture
- Shopify sales tax: what Shopify does and doesn’t handle
- Amazon FBA and physical nexus: when your inventory creates tax obligations
- Foreign sellers guide to US sales tax: EIN, registration and compliance from outside the US