NAICS Code for Candle Making Businesses (2026 Guide)
Not sure which NAICS code applies to your candle making business? We break down the right code for handmade candle makers — whether you pour container candles, make pillar candles, or sell wax melts wholesale to boutiques.
This guide reflects NAICS codes as used by the IRS on Schedule C for candle making businesses in 2026.
If you make and sell candles — container candles, pillar candles, soy candles, beeswax candles, or wax melts — and you’re trying to file your Schedule C or register your business, you’ll need a Principal Business or Professional Activity Code. That code comes from the NAICS system, and for candle makers there is one primary manufacturing code, with wholesale and retail alternatives depending on how your business actually operates.
Choosing the right code matters. The IRS uses your NAICS code to benchmark your return against similar businesses. A candle maker with significant wax, fragrance, and wick costs filing under a retail code will look unusual compared to other businesses in that code — which is the kind of mismatch that draws unnecessary attention.
Let’s work through the options.
What is a NAICS code and why does it matter for candle makers?
NAICS stands for the North American Industry Classification System. It’s a six-digit code used by the IRS, Census Bureau, and state tax agencies to classify businesses by their economic activity. You’ll encounter it when filing Schedule C, applying for a business licence, or registering for sales tax in most states.
A few things this code affects:
- The IRS compares your return to others in your code. If most candle manufacturers in your code have substantial material costs (wax, fragrance oils, wicks, colourants, containers) and yours are minimal, that signals a mismatch worth investigating.
- State manufacturing exemptions are sometimes tied to NAICS codes. A manufacturing code may qualify you for sales tax exemptions on raw materials that a retail code doesn’t.
- Manufacturing vs. retail classification affects your COGS treatment. If you make candles from raw materials, a manufacturing code supports claiming those costs as COGS on Schedule C.
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Are you a manufacturer, a wholesaler, or a retailer?
Before picking a code, work out how your candle business actually operates. There are three distinct categories.
You’re a manufacturer if you buy raw materials — wax (soy, paraffin, beeswax, coconut), fragrance oils or essential oils, wicks, colourants or dyes, containers, and packaging — and produce finished candles or wax melts. This is the most common situation for handmade candle sellers on Etsy, at craft markets, or through their own website.
You’re a wholesaler if you primarily sell your finished candles in bulk to retailers, boutiques, gift shops, or home décor stores — rather than directly to end customers.
You’re a retailer if you sell candles you didn’t make yourself (buying wholesale and reselling), or operate a candle shop selling pre-made products to customers.
Most people reading this are manufacturers. That’s the classification to understand.
NAICS code for handmade candle manufacturers
For candle makers who manufacture candles from raw materials, the primary code is:
325998 — All Other Miscellaneous Chemical Product and Preparation Manufacturing
If you produce candles by melting wax, adding fragrance and colourant, pouring into containers or moulds, and finishing with a wick — your primary NAICS code is 325998.
This code covers businesses that manufacture candles and similar products not classified elsewhere in the chemical manufacturing sector. It includes:
- Container candles (soy, paraffin, coconut wax)
- Pillar and taper candles
- Beeswax candles
- Wax melts and tarts
- Specialty candles (birthday, decorative, votive)
| Code | Description | Best for |
|---|---|---|
| 325998 | All Other Miscellaneous Chemical Product and Preparation Manufacturing | Candle makers who manufacture candles from wax, fragrance, and wicks |
On your Schedule C, this code appears in the Other Chemical Product and Preparation Manufacturing section. The IRS will expect this business to have significant raw material costs — wax, fragrance, wicks, colourants, containers, and packaging — which is exactly the cost profile you want to support if you’re claiming these as expenses.
Unlike the soap making codes (325611 and 325620), which have dedicated industry categories, candle manufacturing falls under the “all other miscellaneous” bucket. This is appropriate — the IRS understands that candle manufacturers belong here, and it’s the standard code used across the handmade candle industry.
NAICS codes for candle wholesalers
If you sell primarily to other businesses — boutiques, home décor stores, gift shops, or spas — rather than directly to individual customers, a wholesale code may better describe your business:
424990 — Other Miscellaneous Nondurable Goods Merchant Wholesalers
This code covers wholesale merchants of candles and similar nondurable goods. If your business sells finished candles to retail outlets in bulk, this is the code to consider.
If you both make the candles and sell some wholesale, choose the code that best represents your primary activity by sales volume. Most small independent candle makers will still be a better fit under 325998 (manufacturing) even if they do some wholesale, because the manufacturing activity defines how the business operates.
NAICS codes for candle retailers
If you sell candles you didn’t make yourself, or operate a candle and home fragrance shop selling pre-made products to customers:
| Code | Description | Best for |
|---|---|---|
| 453220 | Gift, Novelty, and Souvenir Stores | Candle retailers selling pre-made products in a store, at markets, or by appointment |
| 454110 | Electronic Shopping and Mail-Order Houses | Online-only candle resellers |
453220 covers specialty retailers of gifts and novelty items — including small shops and market stalls selling candles they purchased wholesale. Home décor and gift retailers often fall here.
454110 applies when you resell candles exclusively online without a physical retail presence.
If you make your own candles, avoid these retail codes. A manufacturing code (325998) better reflects your cost structure and supports your COGS deductions.
Special cases worth knowing
Wax melt and diffuser makers
If your primary product is wax melts, tarts, or fragrance sachets rather than traditional candles with a wick, 325998 still applies. You’re manufacturing a finished scented product from raw materials — the classification doesn’t change because the product is heated in a warmer rather than burned.
Beeswax candle makers
Beeswax candles use the same NAICS code (325998) as soy or paraffin candles. The wax type doesn’t affect the classification. What matters is that you’re taking raw materials and manufacturing finished candles — regardless of whether that wax came from a beekeeper, a soy processor, or a paraffin supplier.
Contract candle manufacturers
If you manufacture candles for other brands under a contract (private label production) — providing the manufacturing service while the customer supplies their brand — you’re still a manufacturer. Use 325998. Contract manufacturing is within scope for this code.
Candle makers who also teach
Many candle makers offer workshops or candle-pouring classes. Teaching is a separate business activity from manufacturing. If you file a single Schedule C, use the code that represents your primary revenue. If you earn more from classes than from candle sales, consult your accountant about whether to file separate Schedules C for each activity.
Candle supply resellers
Some candle makers sell raw materials — wax, fragrance oils, or wicks — to other makers. If reselling supplies is a meaningful part of your business, that activity is closer to wholesale distribution (424990) than manufacturing. If your primary activity is still manufacturing candles yourself, keep 325998 and mention the supply sales in your return. When in doubt, ask your accountant.
How to choose the right code
Here’s a simple way to decide:
- Do you make candles from raw materials (wax, wicks, fragrance)? → Use 325998 (All Other Miscellaneous Chemical Product and Preparation Manufacturing)
- Your sales go mostly to retailers, boutiques, or gift shops? → Consider 424990 (Other Miscellaneous Nondurable Goods Merchant Wholesalers)
- Selling candles you didn’t make yourself? → Use 453220 (Gift, Novelty, and Souvenir Stores) or 454110 for online-only
- Mixed business — candles plus supplies or classes? → Use whichever code matches your largest revenue source
If you pour candles from wax, fragrance, and wicks — and sell them through Etsy, craft markets, your own website, or direct to customers — 325998 is almost certainly the right code.
For a broader look at NAICS codes across different handmade niches, the NAICS codes for handmade businesses post covers jewelry, soap, woodworking, and more.
Tracking your costs once you’ve chosen your code
Choosing 325998 tells the IRS you’re a manufacturer with significant inventory costs. That means your Schedule C should reflect real material expenses — the cost of the wax, fragrance, wicks, colourants, containers, and packaging that go into each batch.
That’s where many candle makers run into trouble at tax time. If you’ve been tracking materials informally — receipts in a folder, a rough spreadsheet — calculating accurate COGS is harder than it should be. Especially for candles, where a single pour might use three different waxes blended to a specific ratio, fragrance at a precise load percentage, and containers purchased in bulk — and you need to calculate cost per candle from a batch that made 24 units.
Craftybase’s candle making software is built for exactly this. You set up recipes (bills of materials) for each candle formula, track your wax and fragrance inventory by weight, and the software calculates your cost per candle automatically. At tax time, your material costs and COGS figures are ready from real data rather than estimates.
You can also use the free candle cost calculator to work out your cost per candle from your current materials — useful for pricing checks and for seeing what accurate cost tracking looks like before committing to software.
If you’re not ready for software yet, the candle inventory spreadsheet page has a free template to get you started.
Frequently Asked Questions
What is the NAICS code for candle making?
The NAICS code for candle makers who manufacture candles from raw materials is 325998 — All Other Miscellaneous Chemical Product and Preparation Manufacturing. This applies whether you pour soy, paraffin, beeswax, or coconut wax candles, and covers container candles, pillars, votives, and wax melts. If you're making candles yourself from wax, fragrance, and wicks — you're a manufacturer, and 325998 is your code.
What NAICS code should I use if I sell handmade candles on Etsy?
If you make the candles yourself from raw materials, use 325998 — All Other Miscellaneous Chemical Product and Preparation Manufacturing. You're a manufacturer, not a retailer — even though you sell through Etsy. Using a manufacturing code supports claiming your material costs (wax, fragrance, wicks, containers) as COGS on Schedule C. Only use a retail code if you resell candles you didn't make.
Is candle making classified as manufacturing for tax purposes?
Yes. If you take raw materials and transform them into finished candles, you're classified as a manufacturer under NAICS. This is advantageous for tax purposes — a manufacturing classification tells the IRS that your business has significant inventory costs, which supports deducting materials as cost of goods sold rather than as a simple business expense. It also aligns your return with what the IRS expects for businesses in your code.
Does my NAICS code affect how I report COGS on Schedule C?
Yes, indirectly. A manufacturing NAICS code (325998) signals to the IRS that your business has significant inventory and material costs. This supports completing Part III of Schedule C to calculate your cost of goods sold — including the wax, fragrance, wicks, containers, and packaging that go into each batch. A retail code signals a different cost structure, and using it when you're actually manufacturing candles can create a mismatch that raises questions.
What NAICS code do I use if I make candles and also sell raw supplies?
Use the code that best represents your primary revenue source. If manufacturing and selling finished candles accounts for the majority of your income, use 325998. If selling raw materials — wax, fragrance, wicks — to other makers is your bigger earner, the wholesale code 424990 may be more appropriate. You can only select one NAICS code per Schedule C, so choose based on where most of your revenue comes from. When in doubt, ask your accountant.
What NAICS code applies to wax melt and tart makers?
Wax melt and tart makers use the same code as candle manufacturers: 325998 — All Other Miscellaneous Chemical Product and Preparation Manufacturing. You're taking raw materials (wax, fragrance, colourant) and producing a finished scented product — that's manufacturing regardless of whether the end product has a wick. The classification doesn't change because the product is heated in a warmer rather than burned directly.
Quick reference: NAICS codes for candle making businesses
| Business Type | NAICS Code | Description |
|---|---|---|
| Candle manufacturer (any wax type) | 325998 | All Other Miscellaneous Chemical Product and Preparation Manufacturing |
| Wax melt / tart maker | 325998 | All Other Miscellaneous Chemical Product and Preparation Manufacturing |
| Candle wholesaler | 424990 | Other Miscellaneous Nondurable Goods Merchant Wholesalers |
| Candle retailer / market seller | 453220 | Gift, Novelty, and Souvenir Stores |
| Online-only candle reseller | 454110 | Electronic Shopping |
Once your NAICS code is sorted, the next step is making sure your books support the manufacturing classification you’ve claimed. That means tracking the true cost of every batch you pour — wax, fragrance, wicks, colourants, containers, labels — so your Schedule C reflects real numbers at tax time.
Craftybase’s candle making software handles exactly this: set up a recipe for each candle formula, track your ingredient inventory by weight or unit, and your cost per candle is calculated automatically. Start a free 14-day trial and see how much easier tax time gets when you’re tracking properly from the start.
