Educational guide
How to Invoice in the US
What a US invoice should show, where sales tax rules come from, and the IRS guidance on keeping invoices and other records, with a worked example in US dollars.
This page is for general education only. Tax law, e-invoicing rules, and invoice mandates vary by sector, threshold, and updates from authorities. Confirm requirements with a qualified accountant, lawyer, or government guidance for your situation.
In the US, an invoice is one of the records the IRS expects a business to keep. The IRS says (US, last reviewed or updated August 3, 2026): "Supporting documents include sales slips, paid bills, invoices, receipts, deposit slips, and canceled checks." On the format, its recordkeeping page says (US, last reviewed or updated May 1, 2026): "You may choose any recordkeeping system suited to your business that clearly shows your income and expenses." It adds: "Except in a few cases, the law does not require any special kind of records."
Sales tax is set by states and localities. The IRS refers to "state and local general sales taxes" (Topic no. 503, US, last reviewed or updated September 24, 2026), and USA.gov's page on state and local taxes (US, last updated December 11, 2025) says: "Most states and municipalities have a sales tax and charge different percentages on different goods, or not at all for other items." For whether to charge sales tax and at what rate, check your state's department of revenue. The IRS page of state government websites (US, last reviewed or updated October 11, 2026) says: "Visit the state websites below and find information on doing business in the state, taxation, links for employers, and more."
Worked example, with sample figures in US dollars and no sales tax line, because whether sales tax applies depends on the state: a web designer bills a website build at $2,400.00 plus 6 hours of revisions at $75.00, so 6 × $75.00 = $450.00. The invoice total is $2,400.00 + $450.00 = $2,850.00, paid as a $1,425.00 deposit and a $1,425.00 balance, and $1,425.00 + $1,425.00 = $2,850.00.
In Billed, the invoice software page says: "Save your tax rates and settings once, and Billed calculates taxes automatically when you create invoices and estimates." It also says you can "Create branded invoices, send them by email, take card and PayPal payments on them, and see which invoices are paid, partly paid or past due, all from one Billed account."
Invoice checklist for United States
Each item has a note on what to include and when it applies.
Your business name
RequiredYour client's expense records rely on it. The IRS says (US, last reviewed or updated August 3, 2026) that supporting documents "should identify the payee", which on your invoice is you.
Date
RequiredThe same IRS guidance asks expense records to show "the date incurred".
Amount
RequiredThe same IRS guidance asks expense records to show "the amount paid".
Description of the work
RequiredThe same IRS guidance asks for "a description of the item purchased or service received".
Sales tax
Only where the state or locality requires it. Check with the state's department of revenue.
Invoice number
A unique number helps you and your client find the invoice later.
Due date and payment terms
Tells the client when and how to pay.
Tax and regulatory themes in United States
Sales tax is set by states and localities
USA.gov (US, last updated December 11, 2025) says: "Most states and municipalities have a sales tax and charge different percentages on different goods, or not at all for other items." The IRS refers to "state and local general sales taxes" (Topic no. 503, last reviewed or updated September 24, 2026).
Where to check a state's rules
The IRS page of state government websites (US, last reviewed or updated October 11, 2026) says: "Visit the state websites below and find information on doing business in the state, taxation, links for employers, and more." Check the department of revenue in each state where you may have to collect sales tax.
How long to keep records
The IRS says (US, last reviewed or updated June 30, 2026): "Generally, you must keep your records that support an item of income, deduction or credit shown on your tax return until the period of limitations for that tax return runs out."
Recordkeeping format
The IRS says (US, last reviewed or updated May 1, 2026): "You may choose any recordkeeping system suited to your business that clearly shows your income and expenses." It adds: "Except in a few cases, the law does not require any special kind of records."
Payment methods in United States
Availability depends on banks, platforms, and contract terms.
- Bank transfer
- Card
- Check
Business and cultural tips for United States
- Keep a copy of every invoice you send: the IRS lists "Invoices" among the documents for gross receipts (US, last reviewed or updated August 3, 2026).
- Before you throw old records away, the IRS says (US, last reviewed or updated June 30, 2026): "When your records are no longer needed for tax purposes, do not discard them until you check to see if you have to keep them longer for other purposes."
Questions about invoicing in United States
Invoicing guides for other countries
Prefer a product overview for this market? See Billed for United States.
Start Invoicing With Billed
Create invoices, track payments and keep your clients' details in one place with Billed.
At a glance
| Topic | Where the rule comes from |
|---|---|
| Sales tax | The state or locality; check its department of revenue |
| Keeping invoices | IRS recordkeeping guidance |
| How long to keep records | The IRS period of limitations guidance |
| Record format | No special kind of records, except in a few cases (IRS) |
When this isn't for you
If the way you invoice US clients today already works for you, there's no need to switch.