Configure Tax Rates So They Apply Automatically

Tax math is the kind of thing you want to set once and forget. When you save a default rate in your preferences, every new estimate and invoice picks it up automatically, calculates the line, and keeps your totals accurate, so you’re never typing percentages by hand or second-guessing whether you charged the right amount.

Set your default tax rate

Your tax default lives with the rest of your billing settings, so it’s a two-minute job you only do once.

1. Open Settings → Preferences from the left sidebar.
2. Find the Tax section (it sits alongside your Estimates, payment terms, and deposit defaults).
3. Enter your default tax rate as a percentage, for example 8.25 or 20.
4. Give it a clear label if you charge a named tax, like VAT or Sales Tax, so it reads cleanly on the documents your clients see.
5. Save. From here on, new estimates and invoices apply this rate automatically.

How tax flows through your documents

Once your default is in place, the rest takes care of itself. When you build an estimate, Fee-Lion totals your line items, whether they’re tasks billed as hours × rate, fees and units billed as quantity × rate, or any discounts and surcharges, and then applies your tax rate to the subtotal. The same number rides along when the estimate converts to an invoice, so the client sees consistent figures from the first quote through to the Pay button.

• Your default rate appears on each new document, already calculated.
• The tax line shows as its own row, so your client can see exactly what they’re being charged.
• Deposit percentages calculate against the taxed total, keeping your numbers honest.

Tip: Have a client who’s tax-exempt or based somewhere your rate doesn’t apply? You can override the tax on that individual estimate or invoice without touching your global default, so one exception never forces you to reset everything.

Keep your defaults tidy

Tax rules change, and so do your services. It’s worth a quick check now and then to make sure your default still matches reality.

• If your local rate changes, update it once in Settings → Preferences and every new document follows suit. Already-sent estimates and invoices keep their original figures.
• Pair your tax default with your deposit and payment terms defaults so a brand-new estimate is correct the moment you create it.
• If you’ve imported clients and history from another tool, give your first few new invoices a glance to confirm the rate is landing where you expect.

Set it, save it, and let Fee-Lion handle the arithmetic, so your billing stays accurate while you stay focused on the work.

What’s next

• Set your workspace preferences
• Create an estimate
• Collect a deposit on an estimate
• Create an invoice