Understanding the Tax Breakdown on Your Invoice

Here is how to read the tax section on a JobsPaid invoice and what each number means.

The Tax Line Item

Every taxable invoice shows:

Subtotal — The sum of all line items before tax

Sales Tax (X.XX%) — The calculated tax based on the job site ZIP code

Total — Subtotal + tax = what the customer owes

Viewing the Rate Breakdown

To see how the combined rate is composed (state + county + city), tap the tax line on the invoice. JobsPaid shows the breakdown when it is available.

Example breakdown for a 9.5% rate:

• California state tax: 7.25%
• LA County: 2.25%
• Combined: 9.50%

Taxable vs Non-Taxable Line Items

If your invoice has both taxable (materials) and non-taxable (labor) line items, you can tag each line item as taxable or non-taxable. Only the taxable items will have tax applied.

To do this: when adding a line item, tap the Taxable toggle to turn it on or off for that specific item.

Invoice PDF Tax Display

The PDF version of your invoice shows the same tax breakdown, formatted for professional presentation. The tax rate and amount are clearly shown as a separate line above the total.

Customer Questions About Tax

If a customer questions the tax amount, show them the ZIP code used and the breakdown. For disputes about whether tax applies to your services, you may need to consult a tax advisor.