There is no national sales tax
Sales tax in the US is set at state level, and most states let counties, cities and special districts add their own tax on top. That means two jobs a few miles apart can carry different rates, and the same work can be taxable in one state and exempt in another. Five states have no statewide general sales tax at all, though localities in one of them still levy their own.
Read the full US sales tax and invoicing guideHow it usually lands on carpentry work
Custom fabrication can be treated differently from installation in several states — producing a piece of property may be taxable even where installation labor is not. If you both build and install, itemize the two so each can carry the treatment your state gives it.
What a tax-ready invoice shows
- A unique, sequential invoice number.
- Your business name, address and, where you have one, your seller's permit or tax ID.
- The customer's name and the service address — the location often decides the rate.
- The invoice date and the date the work was performed.
- Materials and labor on separate lines, described per line.
- The taxable subtotal, the rate applied, and the tax amount as its own line.
- The total due, and any exemption certificate reference if the sale is exempt.
Finding your own rate
We deliberately do not publish rates — they change, and a stale number on an invoice is your problem, not ours. Look up the combined state and local rate for the service address with your state's revenue department, and confirm whether your type of work is taxable there before you charge or omit tax.
Worked example
- Subtotal for the job
- $713.00
- Sales tax at your combined rate
- you enter the rate
- Total the customer pays
- subtotal + tax
Any tax you collect is never your money — you are holding it for the state and remitting it on your next return.
Common questions
- Should I charge for the design or drawing?
- Yes, as its own line, especially if the customer might take the drawing elsewhere. Credit it against the job if they proceed.
- How much deposit on custom work?
- Enough to cover materials at minimum. Check whether your state caps deposits on home improvement contracts.
- Hourly or fixed price?
- Fixed for defined custom pieces, hourly for repair and trim work where the scope can move. Say which the invoice uses.
Make it in the browser instead
Fill in the job, download the PDF. Free, unlimited, no account. Already set up for carpentry work in US dollars.
Open the free carpenter invoice generator