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Sales Tax Invoice Template

A sales tax invoice is used to calculate a state’s sales tax on a service or product that was sold to an end-user within the state. Rates vary across states, so it’s important to check your specific state sales tax rate before finalizing this invoice.

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Same as Company Address

DescriptionPriceQtyAmountTax
Subtotal
Discount
$
%
Tax
$
%
Shipping
Total
Account/unlimited
Account/unlimited

What is Sales Tax?

Sales tax is a tax regulated at the state level that charges a percentage of an item sold at retail. The government in each state decides the percentage rate for its sales tax. The percentage rate is not permanent and can change with the promulgation of new tax policies. When an item is bought, it’s the retailer’s responsibility to collect the sales tax from the customer and pay it to the government.

Customers that try to avoid sales tax by making purchases in tax-friendly states are typically unsuccessful. For example, if a customer tries to buy a car out of state to avoid paying sales tax, they will be charged for the sales tax when they register the vehicle in their state.

How to Calculate Sales Tax

When offering an item for sale, it’s generally known that the sales tax is not included until the item is purchased. For example, if an item is offered for $10.00 in the state of Wisconsin, the total price at checkout would be $10.50 due to the state’s 5% sales tax. We get this calculation by the following:

$10.00 x .05 (5%) = .50 cents

$10.00 + .50 cents = $10.50

Sales Tax by Zip Code

There are only four (4) states that do not charge a sales tax, which are Delaware, Montana, New Hampshire, and Oregon. All remaining 46 states charge a sales tax, which can be calculated below.

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