What to Put on a US Invoice for Sales Tax

Updated 19 October 2026. Most US states tax goods and not professional services. Hawaii, New Mexico, and South Dakota tax most services. Put tax on its own line. A $680 materials line at 8.25% is $56.10 of tax; labour that your state does not tax stays off that line. This is a checklist, not tax advice. Build the invoice in the US invoice generator.

Frequently Asked Questions

Do I charge sales tax on freelance services?

In most US states, no — professional services are NOT subject to sales tax. Exceptions: Hawaii, New Mexico, South Dakota tax most services.

What if my client is in a different state than my business?

Generally, if you're selling services and have no presence in the buyer's state, you charge tax based on YOUR state's rules.

Do I need a sales tax permit to charge sales tax?

Yes. You can't legally collect sales tax without a permit from your state.

What happens if I forget to charge sales tax on a taxable invoice?

You're still liable to remit the tax to the state — even if you didn't collect it from the customer.

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