Introduction
Taxes in Copilot can seem complex because the system checks multiple conditions to ensure accuracy. This guide explains how taxes are calculated, the order of checks the system follows, and how these rules apply throughout your workflow—from estimates to invoices.
How Taxes Are Calculated
Copilot determines tax rates using a specific order of checks. The system starts with the first condition and continues down the list until it finds one that applies.
1. Is the Customer Tax Exempt?
If a customer is marked as tax exempt, taxes will always be set to 0%, regardless of other settings.
2. Is the Line Item Taxable?
If a selected item or service is marked as non-taxable, taxes for that line item will always be set to 0%.
3. Property Settings
Each property in Copilot can store its own tax information, including:
County Tax
City Tax
State Tax
Total Tax for Taxable Items (sum of the above three)
When you create an estimate, visit, or invoice and select a property, Copilot checks to see if there are matching Items & Services for that property. If so, it applies the tax value defined on that property’s Items & Services entry.
4. Line Item Tax Rate
When you select a line item from the dropdown in an estimate, visit, or invoice, Copilot uses the tax rate defined on that specific item or service.
5. Use Property Location for Tax Rate
If none of the above apply and you’ve enabled the Use Property Location for Tax Rate setting, Copilot automatically looks up the applicable tax rates based on property location and applies them.
Note:
If you use this setting, make sure existing properties and items do not already have tax rates assigned. Otherwise, those values will override the automatic lookup.
You can clear existing tax rates by using the red buttons at the bottom of the page:
Delete tax rates for all items and services
Delete tax rates for all properties
6. Default Tax Rate
If none of the previous conditions apply, Copilot falls back to your default tax rate.
You can set your default tax rate under Settings > Invoices & Estimates.
When the System Applies Taxes
Copilot runs through these tax checks at multiple points in your workflow:
When creating an estimate
When converting an estimate to a visit
When completing a visit and generating an invoice
Each time, the system re-evaluates all applicable tax rules.
Why Tax Amounts Might Change
Because these checks happen at every step, taxes on your final invoice may differ from what appeared on the original estimate or visit. Common reasons include:
You updated the tax rate on an item or service between scheduling and completion.
You changed a property’s tax rate.
You use the Use Property Location for Tax Rate setting and local tax rates were updated by your state or county in between steps.
This dynamic approach ensures Copilot always applies the most accurate, up-to-date tax information to every invoice.