Set your sales tax rate.

Go to Settings → Tax & pricing, enter your combined state and local rate in Sales tax rate, and decide whether labor is taxed with the Tax service labor checkbox. Most states do not tax service labor, so that box is off until you turn it on.

Steps

1. Open Settings → Tax & pricing.
2. In Sales tax rate, enter the combined state and local rate you charge, as a percentage.
3. Tick Tax service labor only if your state taxes labor. The note under the checkbox names some of the states that do.
4. Click Save changes. You will see the message Tax settings saved.

Good to know

• The rate applies only to items marked taxable. Every price book item has a Taxable at your sales tax rate checkbox and every line on a job has a Taxable checkbox, so you can still tax or untax a single item.
• With Tax service labor off, a service added from the price book is never taxed, even if the price book item is marked taxable. Parts, fees and discounts follow their own checkbox.
• Turning Tax service labor on or off does not change the Taxable checkbox on items already on a job. Only items added from the price book after the change use the new default.
• Estimates show the tax as its own line by default. To show one total with the tax folded in, untick Show estimate totals with tax under Settings → Account.
• Owners, admins and dispatchers can change these settings.