Location-Specific Tax Rates

Location-Specific Tax Rates

Tax rates differ by jurisdiction. Multi-location HandyBook handles this cleanly — each location has its own tax setup, applied automatically based on where the work is performed.

Setting up location tax

For each location:

1. Settings → Locations → [location] → Tax Rates
2. Add the rate(s) that apply to that location's jurisdiction:
   • State sales tax
   • County sales tax
   • City sales tax
   • Special district taxes (transit, etc.)
3. Combine into a default rate for that location
4. Optionally set per-service-type overrides (some services taxable at different rates)

How tax is applied

When you create a quote or invoice:

• Default tax rate = the location's default rate
• Override per line item if needed
• Override per quote/invoice if there's a special situation

For POS sales:

• Defaults to the location's rate
• Auto-applied at every checkout

Customer location vs. job location

For tax purposes, what matters is where the service was performed, not always where the customer lives.

• A San Diego customer with a vacation home in Lake Tahoe — work at Tahoe is taxed at Tahoe rates
• HandyBook uses the job's address (or the location it's assigned to) for tax determination

Origin vs. destination based tax

Some US states are origin-based (tax based on where business is registered), others are destination-based (tax based on where service is delivered). HandyBook supports both:

• Settings → Tax → Sourcing Rule — set per state
• HandyBook applies the right rate based on the rule

Tax-exempt customers

Tax-exempt status is per-customer, not per-location:

• A non-profit customer is exempt at any location
• Their certificate ID is on file
• Sales to them are recorded as exempt regardless of where the work happens

Multi-state operations

Operating in multiple states (e.g. you do work in California AND Nevada):

• Set up each state's rates as a location
• Customer addresses determine which location/rate applies
• File a return in each state where you collected tax

Reciprocity and use tax

For purchases (your expenses) that cross state lines:

• HandyBook flags possible use tax obligations
• Track on the Expenses report
• Don't replace your accountant's review for this

Tax exemption certificates per location

Some customers are exempt in one state but not another. Track per-location exemption certs:

• Customer record → Location Exemptions
• Each cert has its location, state, expiry date
• Reports flag expired certs for renewal

Avalara / TaxJar integration (optional)

For complex multi-jurisdiction setups, integrate with a tax service:

• Settings → Integrations → Avalara or TaxJar
• They handle real-time rate determination by address
• Auto-file in supported states

Most users don't need this; native tax handling is enough.

FAQ

My location has special transit tax — how do I handle it? Add as a separate rate component combined with state/county. Most states have known transit/special-district rates; check with your state revenue department for the right number.

What if a job spans multiple jurisdictions? Pick the primary work location for tax (usually where most of the work happens). Your accountant's input on edge cases helps.

How do I file when I have tax in multiple states? File separately in each state where you have collected sales tax. The HandyBook tax report can be filtered per state for each filing.

Will Stripe handle the tax calculation? No — HandyBook calculates and Stripe just processes the payment. Your invoice line items show the tax breakdown; Stripe sees the final total.

Can I have a location with no sales tax (e.g. service-only state)? Yes — set rates to 0% for that location. Or mark services as non-taxable.