← All guides

Charge and track sales tax

Put a tax code on each invoice line and the app computes the tax, adds it to the total, and keeps a running liability so filing time is a read-off, not a scramble. Available in the new Books & Payroll layout.

1. Set up your tax codesOpen the Taxes tab and find the "Sales tax" card. If you're in North Carolina, click "Set up North Carolina rates," enter your county's local rate (the state 4.75% is added automatically), and you get a standard set: general sales, taxable repair/installation labor, small and large new tires (which also carry the scrap tire disposal tax), and an exempt code.
2. Check the rates yourselfRates are entered by a person and never change on their own — that's deliberate. Confirm your combined rate and the scrap tire percentages against the Department of Revenue before your first taxed invoice, and edit any code's label or rates right in the table.
3. Tax an invoice lineIn the invoice editor every line has a Tax dropdown. Pick the code that fits the line — tire, labor, exempt — and the totals box shows Subtotal, Tax, and Total. Items from Inventory can carry a default tax code so the dropdown fills itself.
4. The tax is locked in at saveThe tax on a saved invoice is computed on the server and frozen on that invoice. Changing a rate later only affects new invoices — history never quietly rewrites.
5. See what you oweBack on the Taxes tab, the Sales tax card totals your taxable sales, collected sales tax, and scrap-tire/excise for any date range — the numbers your sales tax return (Form E-500 in NC, E-500G for scrap tire) asks for. Drafts and voided invoices are excluded automatically.
6. Refunds handle themselvesA negative line (a return) reverses its own tax, so the liability stays right without any side math.