Configure Tax Rates in Pricebook

What this guide covers

This guide explains how to configure tax rates for pricebook items. Proper tax configuration ensures quotes and invoices calculate the correct tax amount automatically.

Setting a default tax rate

1. Navigate to /settings > Pricebook > Tax.
2. Enter the Default Tax Rate (e.g., 8.25%).
3. Click Save.

This rate applies to all pricebook items unless overridden per item.

Screenshot: The tax configuration page in settings with the default tax rate field.

Setting tax per item

To override the default rate for a specific item:

1. Open the item in the pricebook.
2. Click Edit.
3. In the Tax section, choose:
   • Default rate -- uses the workspace default.
   • Custom rate -- enter a different percentage.
   • Tax exempt -- no tax applied.
4. Click Save.

Tax-exempt items

Some services or parts may be tax-exempt depending on your jurisdiction. Mark them as exempt to prevent tax from being calculated on those line items.

Common tax-exempt scenarios:

• Labor services in states where service labor is not taxable.
• Parts sold to tax-exempt organizations.

How tax appears on documents

When a pricebook item is added to a quote or invoice:

• The tax rate is applied to the line item total.
• Tax amounts are shown as a separate line at the bottom of the document.
• Customers see the subtotal, tax amount, and grand total.

Tip: Verify your default tax rate with your accountant. Tax rates vary by state, county, and city, and incorrect rates can cause billing disputes and compliance issues.

Note: Tax rates configured in JobsiteOn are for document calculations only. They do not automatically file taxes with any government agency.

Related articles

• Manage Pricebook Services and Parts
• Configure Markup and Margin
• Use Pricebook in Invoices