How to invoice in Texas

Sales tax: Texas taxes a list of services

The Texas state sales tax is 6.25 percent, and cities and districts can add up to 2 percent, so the total at a job site can be as high as 8.25 percent. Unlike many states, Texas taxes certain services, not only goods.

The Comptroller’s list includes repair of many kinds of tangible items such as vehicles and appliances, and a group of real property services such as landscaping and lawn care, janitorial work and pest control. Repair and remodeling of commercial buildings is generally taxed too, while labor on residential remodeling is treated differently, with the contractor paying tax on materials.

Because home versus business changes the answer, read the Comptroller’s guidance for your exact work. If tax applies, put it on its own line on the invoice.

No state general contractor licence

Texas does not license general contractors or handymen at the state level. Cities may require their own registration or permits, so check your city.

Specific trades are licensed by the state instead. The Texas Department of Licensing and Regulation (TDLR) licenses electricians and air conditioning and refrigeration contractors, and the Texas State Board of Plumbing Examiners licenses plumbers (check the current licensing agency). If you hold one, the licence number should appear on your invoice, estimates and advertising.

• Electricians and AC and refrigeration contractors: TDLR.
• Plumbers: the Texas State Board of Plumbing Examiners.
• General remodeling and handyman work: no state licence, but check your city.

What to put on a Texas invoice

• Business name, address and phone, and your state licence number if your trade has one.
• Customer name and the service address.
• Invoice number, date and a clear due date.
• Parts, materials and labor on separate lines so any taxable piece is easy to see.
• Tax on its own line when it applies, with the rate.
• Payment instructions and any deposit already received.

In Paylark, pick Texas as your state and enter your licence number once; the label reads “License / registration #” and you can change it to the exact wording of your licence.

Deposits and payment terms

Texas property law has special rules for residential construction contracts, including a disclosure statement the contractor generally gives the owner; check the Property Code or a Texas attorney for when it applies. Late-fee and deposit limits depend on the contract and the kind of work, so put your terms in writing before the job and check local rules. The late fee calculator shows what a fee comes to.

Where to go next

Texas jobs often finish in the heat, with the customer standing next to the truck. Look at the pages for HVAC, electricians and lawn care, see the pricing, or try the demo. This page is general information, not legal or tax advice.

Official sources

Check the rules with the people who write them:

• Texas Comptroller of Public Accounts: comptroller.texas.gov
• Texas Department of Licensing and Regulation: tdlr.texas.gov
• Texas State Board of Plumbing Examiners: tsbpe.texas.gov

Rules change and this page is a starting point. Confirm with your state revenue department and licensing board before you rely on it.