Adding Sales Tax

Some states require a sales tax to be charged to renters. Your Rentec Direct property management software offers a convenient option to include surcharges, such as sales tax, with rent on a single comprehensive invoice.

Important Note: Effective January 1, 2025, Arizona revised its residential rental guidelines, specifically prohibiting the collection of sales tax. Laws 2023, Chapter 204 and A.R.S. 42-6004 (H)

Charging Sales Tax

Sales Tax and other housing-related fees can be easily added as a one-time or recurring charge.

If the Sales Tax charge is to be recurring with the rent charge, we recommend using the surcharge feature, which allows you to create a custom category and post one invoice to the tenant's ledger.

Click here to learn more about Tenant Invoices with Surcharge Options

Create a Comprehensive Invoice with Rent and Tax or Other Charges Combined, Using Surcharges

In your Rentec Direct account:

1. Click on Settings
2. Under Financial, select Product & Services
3. Click on +Add Product 
4. Add a description and set the type to other 
5. Click on Save New Product, which will take you back to the Products & Services page
6. Edit the rent product by clicking the paper/pencil icon 
7. Add the new Surcharge from the drop-down options
8. From the drop-down menu, choose between percentage (up to 10 digits) or fixed fee
9. Click on Save Changes 

Note: This option will be available when tenants are placed in properties.

Below is a sample of your finished product. You will notice the option to add additional surcharges below the Sales Tax section.

Create a One-Time Tax Charge

If a one-time tax charge is needed, simply post a charge to the tenant by following the steps below.     

In your Rentec Direct account: 

1. Click on Tenants
2. Using the search filter in the upper right corner, locate the tenant
3. Using the tenant Info Card to the right or right-click to access the menu and select Post Charge 
4. Enter transaction details using your custom sales tax product/service you created or category 110, which is specifically for these additional charges related to Tenants
5. Add the tax amount being charged
6. Add a memo (ie, sales tax, quarterly tax, etc.) on the memo line
7. Leaving the recurring option unchecked 
8. Click Post Charge to save the transaction

Click here for details on how to create a custom category

Create a Recurring Tax Charge

If you prefer to set up a separate recurring transaction to apply the tax charge, these steps provide excellent instructions.

In your Rentec Direct account: 

1. Click on Tenants
2. Using the search filter in the upper right corner, locate the tenant
3. Using the tenant Info Card to the right or right-click to access the menu and select Post Charge 
4. Enter transaction details using your custom sales tax product/service or category 110, which is specifically for these additional charges related to Tenants
5. Add the tax amount being charged
6. Add a memo (ie, sales tax, quarterly tax, etc.) on the memo line
7. In the lower left corner, check the Recurring box
8. Another line will open at the bottom, allowing you to enter the recurring details
9. Click on Post Charge to save the transaction

Note: Click here for details on how to create a custom category

System Note: If your accounting default setting is set to charge rent "x" amount of days before the due date, charges added as a surcharge will automatically appear together on the tenant ledger. If you choose to set separate recurring transactions, ensure that your transaction has a start date prior to the rent due date as well. 

Contact Your US-Based Success Team

Have questions? Connect with your US-based Award-Winning Success Team weekdays from 6 am to 5 pm (PST). Just click on the Live Expert Help link to chat or email live support, email success@rentecdirect.com, or call 800-881-5139 ext 2. rentecdirect