> 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 three sales-tax methods. Manual rates remain available alongside either automatic provider:

* **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.
* **Automatic (Washington DOR)** uses Washington Department of Revenue address rates for Washington properties. This option is available to businesses with a Washington business address and does not require Stripe.
* **Manual rates** uses rates defined by your business. An automatic manual rate can apply to every taxable item or only selected pricebook items, and can apply everywhere or only to properties in one state or province.

> **Where to find it:** Go to **Settings → Quotes & Invoices → Sales Tax**. Access requires the invoicing feature to be turned on and permission to set up invoicing integrations.

When an automatic provider is selected, a manual rate that applies automatically to a line item **takes priority**; the selected automatic provider calculates the rate for taxable items none of your manual rates cover.

## Choose a sales-tax method

1. Open **Settings → Quotes & Invoices → Sales Tax**.
2. Select **Automatic (Stripe)**, **Automatic (Washington DOR)**, or **Manual rates**.
3. Select **Save**.

**Automatic (Stripe)** can only be newly selected after Stripe is connected and verified. 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.

## Use Washington DOR

Set your business address to Washington, United States, then choose **Automatic (Washington DOR)** and save. Properties need a complete Washington street address, city, and ZIP code. Standard postal abbreviations such as **Avenue Northeast → AVE NE** are accepted. A verified DOR street range also works when your property's house number falls within it and matches its odd/even side. When the address lookup needs verification, Essential also checks DOR's address points and map rates. A ZIP-code difference or missing street direction can resolve automatically when the address match is strong and the map results agree on the tax rate and DOR location code. Your saved property address stays as entered. Uncertain matches still show a warning so you can review and correct the property address. Confirm which items should be taxed; an address rate does not establish your business's registration or an item's taxability.

**Use Stripe when Washington DOR cannot provide a rate** is off by default. To enable it, connect and verify Stripe, configure the required tax registrations, check the option, and save. Fallback calculations may incur Stripe fees. With fallback off, an unavailable or unverified DOR result shows a warning so you can correct the address or retry. For a property outside Washington, enable fallback as well as its Stripe tax registration. Adding a registration alone does not enable fallback. On mobile, a missing registration or coverage gap shows a warning naming what's missing; ask your administrator to make the change in Sales Tax Settings. A separate **Sales tax unavailable** message for a lookup failure (for example an unverifiable address) is plainer — it offers at most a **Retry** button, with no setup guidance.

Essential reuses recently checked address rates across businesses. Used addresses are checked again after 24 hours and at the start of each Washington calendar quarter. Saved documents retain their saved tax. DOR outages do not trigger a paid Stripe lookup unless fallback is enabled, and an expired cached rate is not silently substituted.

## Manage manual rates

**Your rates** remains available with every sales-tax method.

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. Turn **Apply automatically** on if the rate should be added to taxable items on new quotes, invoices, and subscriptions. The next two choices only appear while it is on.
4. Under **Where this rate applies**, choose **Everywhere**, **One state** (or **One province**) and pick it to limit automatic application to properties there, or **One city**, then pick the state and type the city. See [Sales tax settings](/administration/settings/sales-tax.md) for how city rates stack with statewide rates.
5. Choose **All taxable items** or **Specific pricebook items**. For specific items, search by item name or code and select at least one item.
6. Select **Save**.

Item scopes affect automatic application only. You can still explicitly choose any configured manual rate for a taxable line in **Adjust Sales Tax Rate**. Custom items and generated lines without a pricebook item only receive rates configured for all taxable items.

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

When adding a taxable item, matching automatic manual rates take priority. The selected automatic provider covers items with no matching manual rate.

> **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 edit control requires the sales-tax editing permission.

The **Adjust Sales Tax Rate** window has a document-level picker and a per-line table:

1. **Rate for all taxed items** sets the rate for every taxed line at once. Pick one or more of your manual rates, or the automatic address rate. When lines carry different rates it reads "Varies by line."
2. Each line's **Tax?** checkbox controls whether that item is taxed. Checking it fills in the rate Essential would apply automatically; you can change or remove it.
3. Each line's rate picker offers every configured manual rate — regardless of its state or item scope, since an override is a deliberate choice — plus the automatic address rate when automatic sales tax is on. A line uses either the automatic address rate or manual rates: picking one replaces the other.
4. Select **Save**. A checked line with no rate and no available automatic address rate shows a reminder until you pick a rate or uncheck **Tax?**.

The same applies to **Charge Sales Tax** when editing a line item directly: if your business has exactly one configured manual rate and nothing applies automatically, checking the box applies that rate even when it's limited to a state the property doesn't have or to specific pricebook items that don't include this one — an explicit check ignores both limits. With several configured rates and none that apply, the quote shows a warning naming the items that still need a rate, with a shortcut to the Adjust Sales Tax Rate window.

Lines whose rates differ from what would apply automatically show a yellow TAX pill — hover it to see the rates on that line.

## Warnings and property changes

If a property has no country saved, Essential uses the business country for automatic tax on web and mobile.

* If an automatic lookup cannot verify an address or the service is unavailable, the form shows the reason and **Retry sales tax lookup**. Choose **Review and edit property address** to open the property in another tab, edit and save its address, then return to the document and retry. Your document edits stay open, and the retry uses the property's saved address to refresh automatic tax on all checked lines. Manual tax selections and unchecked lines stay as you set them. Essential also tries standard postal formatting once when DOR cannot verify the original address; it does not change your saved property address.
* For items requiring Stripe or Stripe fallback, a warning appears when the property's location has no active Stripe registration and some taxable item has no manual rate — those items won't be taxed until you register the state, add a matching manual rate, or set a rate in Adjust Sales Tax Rate.
* If automatic sales tax is on but Stripe is disconnected, reconnect Stripe (or manage your rates) from Sales Tax Settings. Items covered by automatic manual rates are still taxed while Stripe is disconnected.
* Essential warns when automatic manual rates exist but none match the line item's pricebook scope and the property's state or province.
* The property can only be changed before the document's first save. Changing it recalculates automatic tax for the new address: manual rates matching the new property attach immediately, and the provider rate is looked up for the rest. On **Manual rates** only, a rate you explicitly selected on a line is left as you set it even if it no longer matches; with an automatic provider selected (Stripe or Washington DOR), every line's tax snapshot is cleared and rebuilt for the new address instead, including a rate you picked by hand.

Saved quotes and invoices keep the tax rate and amount that were applied when they were saved. Subscriptions do too, with one exception: on an active or scheduled subscription, lines taxed at the automatic address rate (Stripe or Washington DOR) have that rate re-resolved during the 2 days before each upcoming invoice, so its tax can change between cycles without you touching it. Opening a document with saved tax does not request a new automatic tax calculation. Adding a taxable item, changing the property, or opening **Adjust Sales Tax Rate** can look up the address rate when needed.

## Related guides

* [Sales tax settings](/administration/settings/sales-tax.md)
* [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)
* [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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