What Work Clothing Contractors Can Actually Deduct

Episode 67 of the Construction Accounting Podcast with George Ghazarian, CPA · 5 min 56 sec · Published 3 January 2026

Boots, hoodies, hard hats, branded shirts. Contractors spend thousands a year on jobsite clothing and then either miss the deduction or write off things that will not hold up.

This sorts the gear that qualifies from the clothing that does not, and shows how to cover your crew without creating taxable wages.

The Sentence the Whole Deduction Turns On

Work clothing is not deductible — even if you only wear it to work — unless two things are both true: it is required as a condition of your employment, and it is not suitable for everyday wear. That one sentence is why so many contractors get this wrong. Wearing something exclusively on the jobsite does not make it deductible. Your intent is not the test. Suitability is.

If you could reasonably wear it to Costco or Starbucks, the IRS calls it personal clothing.

What Does Not Qualify

• Jeans
• Hoodies and t-shirts
• Flannels
• Carhartt jackets
• Regular boots you could wear to the store
• Business casual and everyday attire

None of that changes because the clothing lives in your truck and never leaves the site.

Protective Gear Is Where Contractors Win

Gear that is required for safety and is not normal street wear is deductible under Section 162 of the tax code. That covers hard hats, steel-toed boots, safety glasses, gloves, high-visibility vests, insulated coveralls and hearing protection. Steel-toed boots used specifically for jobsite safety are deductible; regular boots you could wear casually are not, and that distinction is the whole thing.

Specialized work apparel qualifies on the same logic: heavy-duty or grease-stained overalls, fire-resistant clothing, specialized trade uniforms. If you would not wear it off the job, and no normal person would either, it usually passes the test.

Logo Clothing and Laundry

Branded clothing is where contractors think they are safe and often are not. Logo clothing is deductible only if it is clearly promotional, required for work, and not worn personally. A required, logoed uniform that clearly identifies workers on a jobsite is much safer ground than a company polo you also wear to dinner.

Then the bonus most contractors forget: if the clothing itself is deductible, the dry cleaning, laundry and maintenance that go with it are deductible too. If you are washing safety gear, overalls or uniforms, track it.

Owners Deduct, Employees Cannot

If you are self-employed or running your own company on Schedule C, through an LLC or through an S corporation, this part is simple. Qualifying protective gear, specialized work apparel and required uniforms are deductible as long as they are ordinary, necessary and not suitable for everyday wear. Keep receipts and do not get aggressive.

Your employees are in a different position. Due to federal tax law changes, employees lost the ability to deduct work clothing, even where the clothing itself would qualify.

Accountable Plans and State Reimbursement Rules

An accountable plan lets you reimburse employees for qualifying work clothing. The reimbursement is tax free to them and fully deductible to the business. Three rules make it work:

1. The expense must be business-related
2. The employee submits receipts
3. Any excess reimbursement is returned

Reimburse with separate payments, not through payroll. Running gear money through payroll turns a clean reimbursement into taxable wages, which is exactly the outcome the plan exists to avoid.

Some states go further and require employers to reimburse required gear, including California, Illinois, Montana, New Hampshire, North Dakota and South Dakota. If you operate in one of those and you are not reimbursing, you have a labor law problem sitting on top of a tax question.

The Mistakes That Draw Attention

The audit magnets are consistent: writing off jeans and hoodies, deducting everyday boots, calling normal clothes uniforms, mixing reimbursements into payroll, and keeping no receipts or documentation.

The fix is boring and it works. Separate safety gear from regular clothing in your records. Use an accountable plan if you have employees, and reimburse outside of payroll. Keep receipts digitally. Be consistent year to year, because inconsistency is what makes a reviewer look twice. You do not have to be aggressive to save money here. You have to be correct.

The short version

• Work clothing is deductible only when it is not suitable for everyday wear
• Jeans, hoodies, flannels and regular boots do not qualify, even on the jobsite
• Hard hats, steel-toed boots, hi-vis vests and FR clothing generally do qualify
• Laundry and cleaning are deductible only when the clothing itself is deductible
• Employees can no longer deduct work clothing; an accountable plan solves that
• California, Illinois, Montana, New Hampshire, North and South Dakota require reimbursement

Related episodes

• Construction Payroll Mistakes That Wreck Your Business
• Failed Acquisition Costs and What Contractors Can Deduct

Browse the full Construction Accounting Podcast archive

This episode is general information about how these rules work, not advice for your situation. Tax law changes and the right answer depends on your entity, your income and your circumstances. Talk to a CPA before acting on it.