How JobsPaid Calculates Sales Tax
JobsPaid uses real-time ZIP code lookups to calculate the exact combined sales tax rate for every invoice — automatically.
Tax by ZIP Code
When you create an invoice, JobsPaid looks up the sales tax rate for the job site ZIP code. This rate includes:
- State sales tax
- County tax (where applicable)
- City/municipality tax (where applicable)
- Special district taxes (transit, tourism, etc.)
This combined rate is more accurate than using a flat state rate, because tax rates vary significantly within a state. The rate in downtown Seattle is different from a rural ZIP code 40 miles away.
Where JobsPaid Gets the Rate
Tax rates are sourced from official state and municipal tax databases, updated regularly.
How Tax Appears on Your Invoice
The tax is shown as a separate line item at the bottom of the invoice:
Subtotal: $850.00
Sales Tax (9.25%): $78.63
Total: $928.63
Overriding the Tax Rate
If you know the correct rate is different from what JobsPaid calculated, you can override it manually on any invoice. Tap the tax field on the invoice and enter your rate.
Turning Off Tax
If your work is not taxable (labor-only services in many states), go to Settings → Taxes and turn off automatic tax calculation. You can also set it to $0 on individual invoices.
Tax Rounding
JobsPaid rounds tax to the nearest cent using standard rounding rules.