> For the complete documentation index, see [llms.txt](https://learn.withessential.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://learn.withessential.com/revenue/quotes/sales-tax-on-a-quote.md).

# Sales tax on a quote

Essential supports two sales-tax methods:

* **Automatic (Stripe)** looks up tax for the property's address. Your business must have a connected Stripe account and an active tax registration where it collects tax.
* **Manual rates** uses rates defined by your business. An automatic manual rate can apply everywhere or only to properties in one state or province.

> **Where to find it:** Go to **Settings → Invoicing → Payments → Sales Tax**. Access requires permission to set up invoicing integrations.

## Choose a sales-tax method

1. Open **Settings → Invoicing → Payments**.
2. Under **Sales Tax**, select **Automatic (Stripe)** or **Manual rates**.
3. Review the confirmation, then select **Enable** or **Disable**.

Automatic tax can only be newly selected after Stripe is connected. If an already-enabled Stripe account becomes disconnected, Essential keeps Automatic selected so an administrator can reconnect Stripe or deliberately switch to Manual rates. It never silently changes the business's tax method.

## Manage manual rates

Select **Manual rates** to see **Your rates**.

1. Select **Add rate**.
2. Enter the required agency and **Rate (%)**. Add a jurisdiction name when it helps identify the rate. Essential preserves and displays any additional decimal places in the configured percentage instead of rounding the rate.
3. Choose a state or province to limit automatic application to properties there, or choose **All states** or **All provinces** to apply it everywhere.
4. Turn **Apply automatically** on if the rate should be added to taxable items on new quotes, invoices, and subscriptions.
5. Select **Save**.

Use the edit icon to change a rate. Editing the reusable rate affects new uses; saved documents keep their saved tax amounts. Use the delete icon to remove an unused rate. A rate already used by a quote, invoice, or subscription cannot be deleted. To retire it, edit the rate and turn off **Apply automatically**.

## Adjust tax on a draft quote

> **Where to find it:** On a non-exempt draft quote with at least one line item, find **Sales Tax Rate** and select its edit icon.

The **Adjust Sales Tax Rate** window shows every line item:

1. Use **Tax?** to choose whether the item is taxed.
2. With Automatic selected, use the address rate calculated by Stripe.
3. With Manual rates selected, choose one or more configured rates.
4. Select **Save**.

The edit control requires the sales-tax editing permission. If it is missing, ask an administrator to review your role. Tax-exempt customers and properties show **Exempt** and are not taxed.

## Warnings and property changes

* In Automatic mode, a quote is not taxed when the property's location has no active registration. The warning links to Invoicing Settings.
* If Automatic is enabled but Stripe is disconnected, reconnect Stripe or switch to Manual rates in Invoicing Settings. Essential does not silently use manual rates while Automatic remains selected.
* In Manual mode, Essential warns when automatic rates exist but none match the property's state or province.
* Changing the property recalculates automatic tax for the new location. A manual rate you explicitly selected is preserved.

Saved quotes, invoices, and subscriptions keep the tax rate and amount that were applied when they were saved.

## Related guides

* [Add a line item to a quote](/revenue/quotes/add-a-line-item-to-a-quote.md)
* [Apply a discount to a quote](/revenue/quotes/apply-a-discount-to-a-quote.md)
* [Attach a file to a quote](/revenue/quotes/attach-a-file-to-a-quote.md)
* [Create a quote](/revenue/quotes/create-a-quote.md)
* [Custom pricing on quote line items](/revenue/quotes/custom-pricing-on-quote-line-items.md)


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