ServeHub
Get started
Help Center / Pricing & Inventory

Tax Rates

Creating Tax Rates

Set up the tax rates that apply to your business so they can be added to invoices. You can create as many tax rates as you need for different jurisdictions or tax types.

  1. Go to Catalog & pricing in the sidebar.
  2. Open the Tax rates tab.
  3. Click Add tax rate.
  4. Enter a name (e.g., "State sales tax", "GST", "HST") and the percentage.
  5. Click Save.

Applying Taxes to Invoices

Taxes are applied at the invoice level. When creating or editing an invoice, you can select which tax rates to include.

  1. Open an invoice (or create a new one).
  2. In the Tax section, click Add tax.
  3. Select a tax rate from your saved rates.
  4. The tax amount is calculated automatically based on the invoice subtotal and displayed in the total.

Tip: Tax is calculated on the invoice subtotal after any discounts have been applied.

Multiple Tax Support

Some jurisdictions require you to charge more than one tax. ServeHub supports stacking multiple tax rates on a single invoice.

Stacking taxes: Add multiple tax rates to an invoice. Each tax is calculated independently on the subtotal and they are listed separately on the invoice so your customer sees a clear breakdown.

Example: If your area charges both a 5% state tax and a 2% county tax, add both rates to the invoice. A $1,000 subtotal would show $50 state tax + $20 county tax = $1,070 total.

Editing & Deactivating Tax Rates

If a tax rate changes or no longer applies, you can update or deactivate it without affecting invoices that have already been issued.

Editing a rate: Update the percentage on an existing tax rate. The change applies only to invoices created after the edit. Previously issued invoices retain the old rate.

Deactivating a rate: If a tax no longer applies, deactivate it instead of deleting it. Deactivated rates are hidden from the tax picker but preserved on historical invoices.

Tip: When tax rates change at the start of a new year, create the new rate and deactivate the old one rather than editing it. This keeps your historical invoices accurate for tax filing.