Invoice Home Blog

Need Two Taxes on One Item or a Compound Tax?

Published May 10, 2016


Sometimes you may need two taxes on one item. It's simple with Invoice Home. Here’s how to use two taxes on one item.

1. Setup tax #1

When editing the invoice, click the “Add a Tax” button next to an invoice item and fill in “Tax Name” and “Tax %”. Click the “Save Tax” button.

Add New Tax

2. Setup tax #2

Click the Tax button again (“5% Sales Tax” example shown):

Sales Tax

Click the “Add New Tax” link and fill in “Tax Name” and “Tax %”:

Add New Tax

Click the “Save Tax” button and then click the “Select Second Tax” button:

Select Second Tax

Tip: Tax % can be a negative number in which case it is subtracted from the invoice total.

3. What is a Compound Tax?

If you need a compound (or stacked) tax, please check the “Compound Tax?” checkbox:

Add New Tax

A compound tax is only used in a few regions in the world, and it's calculated in addition to the primary tax.

Example #1 - Basic Two-Tax Calculation :

Item Price: $100 | Tax #1 (10%): $10

Subtotal = $110

Tax #2 (10%): $10 (10% from $100)

Total = $120

Example #2 - Compound Tax Calculation:

Item Price: $100 | Tax #1 (10%): $10

Subtotal = $110

Tax #2 (10%, compound): $11 (10% from $110)

Total = $121

If you need assistance or have any questions, please email

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