Show the subtotal, then the discount, then tax on the discounted amount, then the total. That order is the usual one, and it keeps the maths clear for your customer. Below are the boxes to use in the invoice generator and three worked examples you can check with a calculator.
- Subtotal: all the lines added together, before any discount.
- Discount: a percentage of the subtotal, or a fixed amount, taken off.
- Tax: worked out on the amount after the discount.
- Total: what the customer pays.
Where to type them
In the free invoice generator, scroll to the Totals box. It has four fields:
- Discount: the number, for example 10 or 20.
- Discount type: choose % of subtotal or Fixed amount.
- Tax name: for example VAT, GST or Sales tax.
- Tax rate (%): for example 16.
The totals add up as you type, so you can see the subtotal, discount, tax and total change on the page. Leave a box empty if it does not apply.
Example 1: a percentage discount
The lines come to a subtotal of $500.00. You give a 10% discount, and the tax rate is 16%.
| Subtotal | $500.00 |
| Discount (10%) | −$50.00 |
| Amount after discount | $450.00 |
| VAT (16% of $450.00) | $72.00 |
| Total | $522.00 |
In the generator: Discount 10, Discount type % of subtotal, Tax name VAT, Tax rate 16.
Example 2: a fixed discount
The subtotal is the same $500.00. You take off a fixed $20.00, and the tax rate is 16%.
| Subtotal | $500.00 |
| Discount (fixed) | −$20.00 |
| Amount after discount | $480.00 |
| VAT (16% of $480.00) | $76.80 |
| Total | $556.80 |
In the generator: Discount 20, Discount type Fixed amount, Tax name VAT, Tax rate 16.
Example 3: two items with different tax
Item A costs $300.00 and has 16% tax. Item B costs $200.00 and has no tax. You give a 10% discount, which is shared across both items before tax.
| Subtotal ($300.00 + $200.00) | $500.00 |
| Discount (10%) | −$50.00 |
| Item A after discount | $270.00 |
| Item B after discount | $180.00 |
| VAT (16% of $270.00) | $43.20 |
| Total | $493.20 |
In the generator: tick Some items have a different tax. Give item A the tax name VAT and rate 16, and item B the rate 0. Set the discount to 10 and % of subtotal.
Try your own numbers
Add a discount and tax to an invoice and watch the total update. Free, no sign-up.
Steps in the generator
- Add your lines first Type each item with its quantity and price. The subtotal appears in the totals.
- Add the discount Type the number under Discount and choose % of subtotal or Fixed amount.
- Add the tax Type the tax name and the rate. If only some items are taxed, tick Some items have a different tax and use the boxes on each item.
- Check the total with a calculator Take off the discount, work out tax on what is left, and add it. It should match the total on the page.
- Download the PDF The invoice shows the subtotal, discount, tax and total in that order.
Mistakes to avoid
- Working out tax before the discount. The customer then pays tax on money they did not spend.
- Typing prices that already include tax. The tax is added on top, so tax is counted twice. Type the price without tax.
- Showing only the total. Show the subtotal, discount and tax on separate lines so the customer can follow the maths.
- Using the wrong discount type. A “10” as a percentage is very different from a fixed 10.
A note on tax rules: whether you must charge tax, which rate applies and what an invoice must say all depend on your country and whether you are registered for tax. The rates in this guide are examples only. Check the rules with your local tax office or a local professional.
Questions people ask
Should I take off the discount before or after adding tax?
Take off the discount first, then work out tax on the discounted amount. That is the usual order, and it is how the invoice generator does it. Check with your local tax office if you are tax-registered, because rules differ by country.
What is the difference between a percentage discount and a fixed discount?
A percentage discount takes a share of the subtotal, for example 10%. A fixed discount takes off one amount, for example 20. In the invoice generator, choose “% of subtotal” or “Fixed amount” in the Discount type box.
How do I add VAT, GST or sales tax?
Type the tax name and the rate under Totals, for example “VAT” and 16. The tax is worked out for you and added to the total. Use the rate that applies where you work.
What if my prices already include tax?
The generator adds tax on top of the prices you type. If your prices already include tax, type each price without tax: divide the price by 1 plus the rate. For example, 116 with 16% tax included is 116 ÷ 1.16 = 100.
Can one invoice have different tax rates?
Yes. Tick “Some items have a different tax” and each item gets its own tax name and rate boxes. Type 0 for an item with no tax. An item with empty tax boxes uses the tax under Totals. A discount is shared across the items before tax is worked out.
Do I have to charge tax at all?
It depends on your country and your income. Many small sellers do not charge tax, and some must. Check with your local tax office. If tax does not apply to you, leave the tax boxes empty.
Can I show a deposit as well?
Yes. Type it in the Already paid box on an invoice, and the invoice shows the balance still due after the discount and tax.
Is the invoice generator free?
Yes. You can make and download as many invoices as you like without an account. Each free PDF has a small “Made with TaskingMint” line at the bottom.
Related tools and guides
- Invoice generator — free PDF invoices with your logo, tax and payment details.
- How to write an invoice — the full checklist and example.
- How to make an invoice without signing up — the steps and where your details are kept.
- Invoice payment terms explained — net 14, net 30 and due on receipt.
- How to number invoices — formats and rules.