Invoices

How to manage document tax rates?

Last updated: March 21, 2026

InvoiceOwl supports two ways to apply taxes to your invoices: per line item or per entire document.

Per Line Item taxes (default):

  1. Open the invoice editor by clicking Edit on an invoice.
  2. On each line item row, click + add tax below the rate field.
  3. A popup shows your saved tax rates. Select one to apply it to that item, or click Create new to add a new tax rate.
  4. You can apply multiple taxes to a single item.
  5. To remove a tax from an item, click the X next to the tax name on the line item.

Entire Document taxes:

  1. In the invoice editor, switch the tax mode to Entire Document using the toggle in the sidebar.
  2. Select the tax rates you want to apply. They will be applied uniformly to all line items.

Managing your tax rates:

  • Tax rates are managed in your business settings. Click Settings in the left sidebar and go to the Taxes section to create, edit, or archive tax rates.
  • Each tax has a Name, Rate (percentage), and Type (Exclusive or Inclusive).
  • Exclusive taxes are added on top of the item price. Inclusive taxes are already included in the item price.
  • You can create new taxes directly from the invoice editor by clicking Create new in the tax dropdown.

On the Mobile App

Per Line Item taxes:

  1. Open an invoice and tap the Edit icon.
  2. Tap a line item to edit it. In the item editor, you can add or remove taxes for that item.

Entire Document taxes:

  1. In the invoice editor, scroll down and tap More Options.
  2. Tap Tax Mode and switch to Entire Invoice to apply the same tax to all items.
  3. Select the tax rates to apply.

Managing your tax rates:

Tax rates are managed under More tab > Settings > Tax Rates. You can create, edit, or archive tax rates there. You can also create a new tax directly from the invoice editor.