Sales tax on plumbing work: what goes on the invoice

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.

How it usually lands on plumbing work

In most states the parts you install are tangible personal property, so they are commonly taxable, while labor on real property is treated differently state by state — some states tax repair labor, others exempt it, and a few tax new construction differently from repairs. Split parts and labor onto separate lines so whichever rule your state applies, the invoice already supports 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We deliberately do not publish rates — they change, and a stale number on an invoice is your problem, not ours.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

$133.50

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 a service call fee separately?

Yes, and show what it includes. A named service call line with "includes first hour on site" answers the question before the customer asks it.

Do I have to put my license number on the invoice?

Several states require licensed contractors to show the license number on contracts and invoices, and customers look for it regardless. Put it in the footer of every invoice.

How do I bill an emergency or after-hours call?

As its own line, at your after-hours rate, labeled as such. Never fold the premium silently into the hourly rate.