Tax expenses are percentage-based deductions linked to specific data fields. They let you track tax obligations that scale with your revenue or other metrics.
What is a tax expense?
A tax expense calculates a cost as a percentage of a data field's value. For example:
- Income tax: 25% of Total Revenue
- Sales tax: 8% of Cash Collected
This is different from fixed or recurring expenses because the amount isn't fixed -- it scales with the linked metric.
Viewing tax expenses
Navigate to Expenses > Tax to see all tax expenses.
Adding a tax expense
- Navigate to Expenses > Tax
- Click Create
- Fill in:
- Label -- a description (e.g., "Federal income tax", "State sales tax")
- Data field -- the metric the tax is based on (e.g., Cash Collected, Total Revenue)
- Percentage -- the tax rate (e.g., 25 for 25%)
- Save
How tax expenses are calculated
The tax amount for any period is:
Tax amount = Data field value x (Percentage / 100)
For example, if your Cash Collected for the month is $10,000 and you have a 25% tax expense linked to it, the calculated tax expense is $2,500.
This calculation happens automatically and updates as new data comes in.
How tax expenses appear in dashboards
Tax expenses are included in:
- Expenses Chart -- as part of total expenses
- Expenses Breakdown -- under the "Taxes & licenses" category
- Profit calculations -- tax expenses reduce profit
Editing and deleting
- Edit -- change the label, linked field, or percentage
- Delete -- remove the tax expense
Tip: If your tax rate changes, simply edit the existing tax expense. The new rate will be applied to future calculations.