Understanding Tax by ZIP Code

"Tax by ZIP" is JobsPaid's system for calculating the exact local sales tax rate for every invoice based on where the work was performed.

Why ZIP Code Matters

Sales tax in the US is not just a state rate — it is a combination of state, county, city, and sometimes special district rates. These rates stack on top of each other and change at every ZIP code boundary.

For example, in California:

• State rate: 7.25%
• Los Angeles County: +2.25%
• City of Los Angeles: +0%
• Combined: 9.50%

But 10 miles away in a different city, the combined rate might be 10.25%.

How to Ensure Accuracy

For the most accurate tax calculation:

1. Enter the complete job site address including ZIP code when creating an invoice
2. Make sure the ZIP is for the physical job location, not your business address

What If the Work Was in Multiple Locations?

Use the ZIP code where the majority of the work was performed. For jobs spanning multiple ZIP codes (like a large renovation), consult a tax professional.

Updating the ZIP Code on an Invoice

If you entered the wrong ZIP code, open the invoice and edit the job site address before sending. The tax will recalculate automatically.

Override When Needed

If you have confirmed with your CPA that a different rate applies, override the tax manually by tapping the tax field on the invoice.