Items

How do I add taxes on items?

Last updated: March 21, 2026

You can add taxes to items when creating or editing an item in InvoiceOwl.

Adding taxes to an item

  1. Click Catalog > Items in the left sidebar.
  2. Click Add Item to create a new item, or click on an existing item to edit it.
  3. In the item form, scroll down to the Default taxes section.
  4. If you already have taxes set up, you will see a list of available taxes with checkboxes. Check the box next to each tax you want to apply to this item.
  5. Click Create Item (or Save Changes if editing).

Creating a new tax from the item form

If you need a tax that has not been set up yet, you can create one without leaving the item form:

  1. In the Default taxes section, click + Add new tax.
  2. Fill in the tax details:
    • Tax name -- for example, "State Sales Tax."
    • Rate % -- the percentage rate for this tax.
    • Type -- choose Exclusive (added on top of the price) or Inclusive (already included in the price).
  3. The new tax will be created and applied to the item when you save.

Automatic tax assignment

When you create a new item, InvoiceOwl automatically checks any taxes you have set up. If a tax is configured to "apply to all parts" or "apply to all labor," it will be pre-selected based on the item type you choose. You can always uncheck these if needed.

On the Mobile App

You can add taxes to items from the mobile app as well:

  1. Tap the More tab, then tap Catalog.
  2. Tap the + button, then tap New Item (or tap an existing item to edit it).
  3. Scroll down to the Taxes section. You will see a list of your available taxes with checkboxes.
  4. Tap the checkbox next to each tax you want to apply.
  5. Tap Add Item (or Save Changes if editing).

Creating a new tax directly from the item form is not available on mobile. Set up your taxes in Settings > Tax Rates first, and they will appear when creating or editing items.