How to Get a Resale Certificate: Who Qualifies and How It Works

In short: Here is how to get a resale certificate: register for sales tax in your state to get a seller's permit, then fill in the state's resale form (or an accepted multistate form) and give it to each supplier. In most states the tax authority does not issue the certificate itself. Florida and Washington are the main exceptions.

Updated October 2026: We added a guide to the other names you will see (resale permit, reseller license, resale tax certificate), Washington's state-issued reseller permit, and how a business license differs from a seller's permit. The forms for California, Texas, New York and Florida were rechecked against each state's revenue department.

A resale certificate lets a business buy goods it will resell without paying sales tax to its supplier. The tax is collected later, from the final customer. People also call it a resale permit, reseller license or resale tax certificate; we explain the differences below. This guide covers who qualifies, how to get one and how the rules differ between states.

At a glance:

• What it does: lets you buy goods for resale without paying sales tax to the supplier.
• What you need first: usually a seller's permit (sales tax registration) in at least one state.
• Who issues it: usually you do, by completing the state's form. Florida and Washington issue their own documents.
• Cost: the permit is free in California and Texas, though either state may ask for a security deposit or bond.
• Where it goes: to your supplier, not to the state.

What is a resale certificate?

A resale certificate is a signed document a buyer gives to a seller to show that a purchase is for resale, so no sales tax is due. The seller keeps it on file as proof of why it did not charge tax. You use it only when purchasing items for resale, not for things your business uses itself.

You can use it to buy:

• Products you will resell as they are.
• Items you will rent or lease out again.
• Parts or materials that become part of a product you sell.

In Florida, for example, a registered dealer can use its Annual Resale Certificate to buy or rent property tax-free when it will resell or re-rent it.

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

No. A seller's permit (also called a sales tax permit) is your registration with the state, which lets you collect sales tax. The resale certificate is the form you hand to suppliers. In most states you need the permit first, because the form asks for your permit number.

Resale permit, reseller license or resale tax certificate: what is the difference?

Most of these are informal names for a resale certificate or for a seller's permit. Only a few states use them as official names. This table shows what each term normally means.

Washington works differently from most states. Buyers there use a reseller permit issued by the Department of Revenue instead of completing their own certificate. It is generally valid for four years. Contractors and businesses open less than 12 months get a two-year permit.

Who can get a resale certificate?

Any business that buys goods to resell them as part of its normal business activity can usually use one. That includes retailers, wholesalers, distributors, online sellers and dropshippers.

In practice, you generally need:

• A sales tax registration (seller's permit) in at least one state.
• Goods you genuinely plan to resell, rent out or build into a product for sale.
• A signer who is authorized to sign on behalf of the business.

Some states are flexible. California says a purchaser does not have to hold a seller's permit to issue a valid resale certificate, as long as it explains why it is not required to hold one. New York lets out-of-state businesses that are not required to register there use its form in certain cases.

Do you need a business license to get a resale certificate?

Not as a rule. A city or county business license lets you carry on a business activity in that area. It does not let you buy tax-free. For that, you need a state sales tax registration and the right resale form.

Washington links the two. To hold a Washington reseller permit, you must have the appropriate Washington business licenses and endorsements.

Does your business need a resale certificate?

Your business likely needs one if it buys inventory from US suppliers and sells it on. Common cases include:

• Selling physical goods: Retailers and wholesalers save the most, because they buy a lot of stock.
• Selling in several states: Each state sets its own rules. You may need state forms or a multistate form that the state accepts.
• Selling online: E-commerce sellers often have nexus in states where they store stock or pass economic nexus thresholds. That brings registration duties, and with them the right to buy for resale tax-free.
• Dropshipping: Your supplier may ask for a resale certificate before shipping to your customers. See our guide to dropshipping.

Not sure where you stand? Read What Is a Sales Tax Permit and Do You Need One? or talk to a sales tax professional. Non-US sellers can start with our guide to US sales tax for foreign sellers.

How do you get a resale certificate, step by step?

You get one by registering for sales tax, then completing the right form for each supplier. The steps below show how to obtain a resale certificate in most states. The exact process depends on the state.

1. Check where you must register. Work out where you have nexus, through a physical presence (office, staff, inventory) or by passing a state's economic threshold.
2. Register with the state tax agency. Apply online for a seller's permit. Obtaining a seller's permit is often free. California's Department of Tax and Fee Administration (CDTFA), which runs the state's sales tax and other taxes and fees, charges nothing for it. Nor does the Texas Comptroller. Both may ask for a security deposit or bond in some cases.
3. Get the right form. Download the state's form, use your state-issued certificate (Florida) or reseller permit (Washington), or use a multistate form the state accepts.
4. Fill it in. Add your business name, address, permit number, a description of the goods and a statement that they are for resale. Then sign and date it.
5. Give it to your supplier. Send it to the vendor, not the state. Many states let you use one blanket certificate for repeat purchases from the same vendor.
6. Keep it current. Update it if your name, address or ID number changes. Florida certificates expire every December 31, so send suppliers the new one each year.

How do the big states handle resale certificates?

Each state uses its own form and rules. This table shows four large states and the two main multistate options.

What must a valid certificate include?

Most states want the same core details. California, for example, requires:

• The purchaser's name and address.
• The seller's permit number, or the reason the purchaser does not need one.
• A description of the goods being bought.
• A statement that the goods are bought "for resale". Words like "exempt" or "nontaxable" are not enough.
• The date.
• The signature of the purchaser, an employee or an authorized representative.

If a detail is missing or out of date, the seller may reject the form. It may also fail in an audit, leaving the tax due.

What are multistate resale certificates?

Multistate certificates let a business that buys in several states use one form instead of a different one for each state. There are two main options.

• Streamlined Sales Tax Certificate of Exemption: Accepted in all 23 full member states of the Streamlined Sales Tax agreement, including Georgia, Michigan, New Jersey, Ohio and Washington. Tennessee is an associate member.
• MTC Uniform Sales & Use Tax Resale Certificate: Published by the Multistate Tax Commission. The current version was updated on October 14, 2022.

Neither form replaces registration. The MTC notes that a buyer must be registered in each state where it has nexus, and that states may change their acceptance without notice. Some states want the buyer registered in that state, while others accept a home-state number. For more on exemptions beyond resale, read Which Businesses Qualify for Sales Tax Exemptions?

How does a resale certificate differ from a sales tax exemption certificate?

A resale certificate covers goods you will resell. A sales tax exemption certificate covers tax-free purchases for other reasons, such as buying by a nonprofit or government body, or for manufacturing. Both tell the seller not to charge tax, but the reason and the form can differ. The SST form, for instance, covers both: you tick the reason that applies.

Does it cover services?

Mostly no. Resale certificates are mainly for tangible personal property: physical items such as clothing, furniture or electronics. Some states do allow resale of certain taxable services. New York's ST-120, for example, covers services you resell. Check the state's rules before you use the form for a service.

What happens if you misuse a resale certificate?

Misuse can lead to back tax, interest and penalties. If you buy items tax-free and then use them yourself, you owe use tax on them. In Florida, resale fraud is a third-degree felony with a 200% penalty.

To stay safe:

• Use the certificate only for goods you will resell.
• Pay use tax on stock you take for your own use.
• Keep copies of every certificate you issue and accept.
• Check customers' certificates, for example with Florida's online verification tool.

What are the benefits of a resale certificate?

The main benefit is that you do not pay sales tax on stock you will resell. That brings several gains:

• Lower costs: Tax is not built into your stock costs, so margins improve.
• Better cash flow: You don't pay tax up front and then chase refunds.
• Fair pricing: Lower costs can help you price more competitively.
• Clear records: A proper paper trail helps you and your suppliers in an audit.

Is a resale certificate worth getting?

Yes, for most businesses that buy goods to resell. It cuts costs and keeps your purchases compliant. The work is in knowing which form each state accepts and keeping your registrations current.

Need help with sales tax registration and filing across states? Book a free call with one of our sales tax experts. This article is general information, not tax or legal advice.

Sources

• CDTFA – Publication 103: Valid Resale Certificates
• CDTFA – Publication 73: Your California Seller's Permit
• Texas Comptroller – Sales and Use Tax FAQs: Resale
• Texas Comptroller – Sales and Use Tax FAQs: Permit
• New York State Department of Taxation and Finance – Exemption Certificates for Sales Tax
• Florida Department of Revenue – Annual Resale Certificate for Sales Tax
• Washington Department of Revenue – Reseller permits
• Streamlined Sales Tax Governing Board – About Streamlined
• Multistate Tax Commission – Uniform Sales & Use Tax Resale Certificate

How Taxually handles this

Taxually’s LumaTax runs a nexus analysis on your sales, helps you register in the states where you must collect, and prepares and files multi-state sales tax returns, including Canadian GST/HST. LumaTax is currently available to enterprises and accounting firms. For the full workflow, read how to automate US sales tax filing in every state.

Related guides

• Economic Nexus by State: What You Need to Know
• 7 Benefits of Automating Your Sales Tax Compliance
• What's New in US Sales Tax? Key Changes for 2026