Settings & Admin
Tax Settings

Tax Settings

Configure tax rates for accurate quotes and invoices.

Overview

Tax Settings lets you define tax rates, set up exemptions, and handle multi-jurisdiction requirements. Taxes calculate automatically on quotes and invoices.

Accessing Tax Settings

Go to Settings → Tax Settings.

Default Tax Rate

Set your standard tax rate:

  1. Enter your rate (e.g., 8.25%)
  2. Name it (e.g., "State Sales Tax")
  3. Click Save

This rate applies to all new quotes and invoices by default.

Tax rates apply to line items marked as taxable. Labor is often tax-exempt while materials are taxed—check your local rules.

Multiple Tax Rates

Add rates for different jurisdictions or types:

Rate NamePercentageUse Case
State Sales Tax6.25%Standard rate
County Tax1.00%Additional local tax
City Tax1.00%Municipal tax
Combined8.25%Total when all apply

Adding a Tax Rate

  1. Click Add Tax Rate
  2. Enter name and percentage
  3. Set as default (optional)
  4. Save

Compound Taxes

When taxes stack:

  • Simple: Each tax calculated on base price
  • Compound: Tax on tax (rare, check local rules)

Configure compound behavior per rate.

Per-Item Tax Overrides

Some items need different treatment:

Setting Item Tax

In the quote editor:

  1. Click on a line item
  2. Find Tax dropdown
  3. Select:
    • Default rate
    • Specific rate
    • Tax exempt

Common Overrides

Item TypeTypical Treatment
MaterialsTaxable
LaborOften exempt
Equipment rentalVaries by state
Permits/feesUsually exempt
Subcontractor workVaries
⚠️

Tax rules vary significantly by location. Consult your accountant or tax professional for your specific situation.

Tax Exemptions

Client Exemptions

Mark clients as tax-exempt:

  1. Go to Clients → select client
  2. Click Edit
  3. Check Tax Exempt
  4. Enter exemption certificate number
  5. Upload certificate (optional)
  6. Save

Tax-exempt clients see $0 tax on all quotes and invoices.

Item Exemptions

Mark specific items as never taxed:

  1. In Settings → Tax Settings
  2. Click Exempt Items
  3. Add item categories or descriptions
  4. These items won't be taxed regardless of client

Multi-Jurisdiction Setup

Working across state or city lines? Set up location-based taxes:

By Project Location

  1. Enable Location-Based Tax
  2. Add jurisdictions with their rates
  3. When creating quotes, select the project location
  4. Correct tax rate applies automatically

Rate Table Example

LocationStateCountyCityTotal
Austin, TX6.25%0%2.00%8.25%
Houston, TX6.25%0%2.00%8.25%
Dallas, TX6.25%0%1.00%7.25%

Tax Display Options

Control how tax appears:

OptionDescription
Show tax separatelyLine item for tax amount
Include in totalTax folded into prices
Show rateDisplay percentage used
Show breakdownList each tax component

Configure in Settings → Tax Settings → Display.

Tax Reports

Track your tax liability:

  1. Go to Reports → Tax Report
  2. Select date range
  3. See:
    • Total tax collected
    • Tax by rate
    • Tax by jurisdiction
    • Exempt amounts

Export for your accountant or tax filings.

Automatic Updates

Tax rates change. Stay current:

  • Review rates quarterly
  • Check when working in new locations
  • Update rates retroactively (doesn't affect sent quotes)

Changes to tax settings only affect new quotes and invoices. Existing documents keep their original tax calculations.

Integration with Accounting

If you use QuickBooks or other accounting software:

  • Tax settings sync automatically
  • Rates match between systems
  • Tax categories map correctly

See Integrations for setup.

Common Questions

Do I charge tax on labor?

Depends on your state. Many states exempt labor, but some don't. Check local rules.

What about out-of-state work?

You may need to collect tax where the work is performed, not where you're based. Multi-jurisdiction setup helps here.

How do I handle tax-exempt organizations?

Mark the client as tax-exempt and keep their exemption certificate on file.

Next Steps

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