Tax Settings

Configure your business Tax ID and per-location state and city tax rates so tax is calculated correctly on your invoices and estimates. Each location has its own rates, applied automatically to new documents created for that location.

Tax Settings Configuration

The Tax Settings page allows you to configure tax rates and calculation rules

Overview

The Tax Settings section in Admin Settings allows you to configure how taxes are calculated and applied throughout RAD Repairs. Proper tax configuration ensures compliance with local tax laws and accurate financial reporting.

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State + City Rates

Set a state tax rate and a city/local tax rate, combined automatically into your total rate.

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Per-Location Rates

Each shop location has its own tax rates for its jurisdiction.

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Automatic Calculation

The active rate is applied automatically to new estimates and invoices for the location.

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Tax Breakdown Display

Optionally show state and local tax as separate line items on estimates and invoices.

Tax Compliance Note: Tax laws vary by location and can change frequently. Consult with a tax professional or accountant to ensure your tax settings comply with local regulations. RAD Repairs provides the tools, but you are responsible for setting the correct rates.

Business Tax ID

At the top of Tax Settings you can store your Tax ID / EIN (Federal Employer Identification Number) for tax documentation. This field is optional - enter it in the format XX-XXXXXXX and click Save Tax ID.

Configuring Tax Rates

Tax rates are configured per location. Each location has a State Tax Rate and a City Tax Rate, which are combined into the total rate applied to that location's documents.

Select the Location

The Tax Rate Configuration panel shows the Current Location you are editing. To manage a different location's rates, switch locations using the location dropdown in the main sidebar.

Enter the State Tax Rate

Enter the state-level tax percentage (e.g., the Arizona state tax). Rates accept up to two decimal places, from 0 to 20%.

Enter the City Tax Rate

Enter the local city/county tax percentage.

Review and Save

The Combined Tax Rate box shows state + city and the total, and the Active Tax Rate shows what will be applied to new estimates and invoices for this location. Click Save Tax Rates to apply.

Two extra buttons help you manage rates:

Reset to Defaults - Restores the default tax rates
Preview Calculation - Shows an example of how tax will be calculated with your current rates

Precision Matters: Enter tax rates with up to two decimal places for accuracy. For example, if your state rate is 5.6% and your city rate is 2.8%, enter exactly 5.6 and 2.8 so the combined 8.4% is calculated correctly on invoices.

Showing the Tax Breakdown

Enable Show tax breakdown on estimates and invoices to display "State Tax" and "Local Tax" as separate line items on customer-facing documents. When disabled, a single combined tax line is shown.

Per-Item Tax Settings

Each product and service in your catalog has a Taxable checkbox (enabled by default). Non-taxable items are excluded from tax calculation on invoices and estimates.

Configuring Item Tax Settings

Go to Products & Services from the main menu
Edit the product or service you want to configure
Check or uncheck the Taxable checkbox
Save the changes

Multi-Location Taxes

If you have multiple shop locations in different tax jurisdictions, each location keeps its own state and city rates:

Switch to a location using the sidebar location dropdown
Open Admin Settings > Tax Settings and set that location's rates
Repeat for each location
Estimates and invoices automatically use the rates of the location they are created for

Nexus Considerations: If you ship products to customers in other states or countries, you may have tax obligations (nexus) in those locations. Consult with a tax professional about your multi-state or international tax responsibilities.

Frequently Asked Questions

How do I handle tax rate changes?

Update the state or city rate in Tax Settings and click Save Tax Rates. The new rate applies to estimates and invoices created after the change; existing documents keep the tax they were created with.

Can I charge tax on labor/services?

Yes. Whether labor and services are taxable depends on your local tax laws. Many jurisdictions tax repair services, while others do not. Use the Taxable checkbox on each service in your catalog to match your local requirements.

Can I set different tax treatment for products vs. services?

Yes. Configure each item individually in your Products & Services catalog. You can mark services as non-taxable while keeping products taxable - the system applies tax only to taxable line items.

How do I handle out-of-state customers?

Tax rules for out-of-state customers vary by jurisdiction. Generally, if the customer picks up the item at your location, your local tax applies. If you ship to another state, different rules may apply based on nexus laws. Consult a tax professional for your specific situation.

Why is my invoice using a different rate than I expected?

Tax rates are per location. Check which location is selected in the sidebar - the invoice uses the rates configured for its location. Also confirm the line items are marked Taxable in the catalog.

How long should I keep tax records?

Most jurisdictions require you to keep tax records for 3-7 years. RAD Repairs retains all invoice and tax data, but you should also export periodic backups. Check with your accountant or local tax authority for specific retention requirements.

Need Help with Tax Configuration?

If you need assistance setting up tax rates or have questions about tax compliance, our support team is here to help. For specific tax law questions, we recommend consulting with a qualified tax professional.

Contact Support