Add sales tax to an invoice

Sales tax is optional. Many service businesses don't charge it; some states require it for certain goods and services. If you're not sure, check with your state or your accountant.

Charge sales tax on an invoice

1. 1Step 1: On the invoice, turn on Charge sales tax.
2. 2Step 2: Type the Sales tax rate (%), like 8.25.
3. 3Step 3: Tick Taxable on each line that should be taxed. Only lines marked taxable are taxed.
4. 4Step 4: Check the totals: Subtotal, the tax, and Total.
5. 5Step 5: Save the invoice.

The tax is worked out once, on the total of the taxable lines, and rounded to the cent.

Set a default rate

If you usually charge the same rate:

1. 1Step 1: Go to Settings → Business (on a phone: More → Business profile).
2. 2Step 2: Under Invoice defaults, type the Default sales tax rate (%).
3. 3Step 3: Save.

New invoices then start with Charge sales tax on and that rate filled in. You can still change it or turn it off on any invoice.

Recurring charges

Recurring charges have their own Charge sales tax switch and rate, and each line has its own taxable tick. See Set up recurring billing.