Calculate sales tax on parts and labor separately — most states tax materials but exempt repair labor, and one blended rate over-bills the customer.
Free to use with no account. When you want to send the result by text, take a card payment, or keep a record of every job, the same numbers carry straight into Glo Invoice.
Why parts and labor are calculated separately. Most US states tax tangible materials but exempt repair or service labor. One blended rate over-bills the customer on the labor half and muddies your filing.
Worked example. $400 of parts and $300 of labor in a state with an 8% rate that exempts labor: tax is $32, total $732 — not $756.
Rates stack. A state rate is only the base. City, county, and special-district rates stack on top, so the rate at the customer's address is what matters — verify it with your state revenue agency.
Common mistakes. Applying your shop's rate to an out-of-town job; taxing labor in a state that exempts it; treating collected tax as income instead of money held for the state.
Frequently asked questions
Is labor taxable?
It depends on the state and often on the type of work — repair labor, installation labor, and new construction can each be treated differently. A few states tax most services. Confirm with your state revenue agency.
Do I charge tax based on my address or the customer's?
For work performed at a customer site, the job location generally governs. Your state agency publishes the sourcing rule.
Is this tax advice?
No. These are general rules to help you ask the right question; verify your rate and taxability with your state revenue agency or your accountant.
