Skip to main content
Add tax to an invoice

Create a tax and add it to a package or invoice line item.

Sam Gioia avatar
Written by Sam Gioia
Updated over a week ago

Updated Aug 7, 2023

Tax is added to each invoice line item individually. This gives you the flexibility to charge taxes only on your taxable services and sales.

What is a tax item?

A tax item is a way to save tax rates in Dubsado so you can apply the tax to invoices and packages.

All tax amounts are visible in Reporting >> Chart of Accounts. Creating a tax Item will add an income category and an expense category so that you can track the tax you collect throughout the year as well as when you make a tax payment.

Add a tax item

  1. On an invoice or package, click New Line Item or Edit.

  2. Under TAX, select New Tax Item.

    • Access saved tax items by clicking Select tax if applicable.

  3. Enter the tax name and the percentage rate as a number.

    screenshot of example tax name and percentage
  4. Click Add.

The tax item is added to the invoice and saved for future use. On the invoice, your client will see the tax percentage.

screenshot showing how tax percentage shows on the invoice

Hide the tax percentage from showing on the invoice

Go to Settings >> Payments and invoices and toggle Show taxes on each line item to No.

On the invoice, your client will see the tax total, but not the percentage.

Remove a tax item

To remove a tax item, edit the invoice or package and click the X next to the tax item.

arrow pointing to x on a tax item

Edit or delete tax items

Go to Reporting >> Chart of Accounts and click the gear icon to edit or the trashcan icon to delete.

Deleting tax items won’t affect past or open invoices with the tax item. However, any tax amount collected won’t be recorded in Dubsado.

🚨 We don’t recommend editing tax items that are already on packages and invoices. Editing the tax item name will prevent transactions from appearing in Reporting >> Chart of Accounts.

We recommend creating a new tax item if you need to charge a new tax.


Can I apply tax to the entire invoice?

No. Tax must be applied individually to each line item on an invoice.

Can I apply more than one tax item for each line item on an invoice?

Yes. You can apply multiple tax items for one line item.

Can Dubsado automatically calculate tax based on my client's location?

Unfortunately not. If you need to charge different tax rates based on your client's location, create a new tax item for each location. The next time you get a client from that location, you can add the tax item to the invoice.

Can I bulk delete tax items from all invoices and packages?

No. To delete tax items, you’ll need to edit invoices and packages individually.

Did this answer your question?