Tax Amount Looks Wrong

If the sales tax on your invoice seems incorrect, here is how to understand and fix it.

How JobsPaid Calculates Tax

JobsPaid uses the job site ZIP code to look up the exact sales tax rate, including state, county, and city rates. This is called Tax by ZIP — it is more accurate than using a flat state rate.

Step 1: Check the ZIP Code

Go to the invoice and verify the Job Site Address or ZIP code entered. If the ZIP is wrong, the tax rate will be wrong. Update the address and the tax will recalculate automatically.

Step 2: Check If Tax Should Apply

Not all contractor work is taxable. Generally:

• Labor-only services — not taxable in most states
• Materials + labor — the materials portion may be taxable
• Products you sell — typically taxable

If your work is not taxable, you can set the tax rate to 0% on the invoice or turn off tax in Settings → Taxes.

Step 3: Override the Tax Rate

If you know the correct rate and JobsPaid is showing a different one, you can override it manually on the invoice. Open the invoice, tap the tax field, and enter the correct percentage.

State-Specific Rules

Some states have reduced rates for contractor services or exemptions for certain trade types. JobsPaid uses the standard combined rate for each ZIP — specialty exemptions may need to be applied manually.

Reporting a Wrong Rate

If you believe the ZIP code rate in JobsPaid is outdated or incorrect, contact support at support@jobspaid.ai with the ZIP code and the rate you expect. Tax rates are updated regularly.