Sales tax
Sales tax on invoices, state by state
The statewide sales tax rate, how local taxes add to it, and a full guide for each state: when services are taxable, how to register and what your invoice must show.
Sales tax rates by state
| State | State rate | Local taxes | Guide |
|---|---|---|---|
| California | 7.25% | District taxes on top | California guide |
| Texas | 6.25% | Up to 2% (8.25% max) | Texas guide |
| New York | 4% | Local; 8.875% in NYC | New York guide |
| Florida | 6% | County surtax on top | Florida guide |
| Illinois | 6.25% | Local taxes on top | Illinois guide |
| Pennsylvania | 6% | 1% Allegheny, 2% Philadelphia | Pennsylvania guide |
| Ohio | 5.75% | County & transit (8.75% cap) | Ohio guide |
| Georgia | 4% | Local taxes stack by county | Georgia guide |
| North Carolina | 4.75% | 2% or 2.25% local | North Carolina guide |
| Michigan | 6% | None | Michigan guide |
How to show sales tax on an invoice
- Put taxable and non-taxable items on separate lines, so the tax applies only where it should.
- Show the rate and the tax amount, not just the total. Split the state and local parts if you charge both.
- Use the rate for where the sale takes place. For goods that is usually where they are delivered; each state guide explains its own rules for services.
- Keep a resale or exemption certificate on file for customers you don’t charge. See how to invoice a tax-exempt customer.
- Include everything else a US invoice needs. Our invoice checklist lists it.
More states are on the way
We are adding states one at a time, starting with the largest, and check every figure against the state’s own tax agency. In any state, you can still set your own rate in the editor. Tick Tax on the taxable lines and enter the state and local parts, and the invoice shows each one.
Frequently asked questions
Do I charge sales tax on services?
It depends on the state and the service. Many states tax few or no services, while others tax specific ones such as repairs, installation, cleaning or landscaping. Each state guide lists what is taxable there.
Which rate goes on my invoice, the state rate or the combined rate?
Usually the combined rate: the state rate plus any county, city or district tax where the sale takes place. Invoice Native lets you enter the state and local parts separately so the invoice shows both.
Which states have no sales tax?
Delaware, Montana, New Hampshire and Oregon have no statewide sales tax. Alaska has no state sales tax, but many of its cities and boroughs charge a local one.