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How to Add Taxes and Discounts to Relay Invoices

UpdatedAugust 11, 2026

Relay lets you apply tax rates to individual invoice line items and add one percentage or fixed-amount discount per invoice, before or after tax.

What you need before you start

  • Access to your Relay Account with permission to create and send invoices

  • The tax rates you plan to use (you can create them on the fly during invoice creation or save them in advance under Settings)

  • Your line items, quantities, and prices ready to enter

How do I add tax to an invoice?

Tax rates apply per line item, so you can charge different rates on different items in the same invoice.

To apply a tax to an invoice, on the browser:

  1. Navigate to Invoices and New Invoice

  2. On Step 2, find the line item you want to tax

  3. Select Add beside the Tax field

  4. Choose an existing tax rate, or select + Add New Tax new to add one on the spot

  5. Repeat for any other line item that needs a different rate

To apply a tax to an invoice, on the mobile app:

  1. Select the Payments button along the bottom menu.

  2. Select the Invoicing button.

  3. Select New Invoice and select your customer to invoice.

  4. Enter the Invoice ID, issue date, and payment due date. Grow Plan and Scale Plan customers can toggle the recurring invoice option here.

  5. Select your pre-existing line items from your catalog. The associated tax rate with this line item will automatically be applied.

  6. If you need to create a new line item that does not exist in your catalog, select Add Custom Line Item and fill out all required information. You will be given the optional choice to apply an existing tax rate to this line item.

    1. Note: Should you need to create or edit tax rates, this can only be done within your Invoice Settings on the dashboard (not the mobile app).

  7. Continue through the remaining invoice flow to finalize and send your invoice.

How do I add a discount to an invoice?

Each invoice supports one discount, applied either as a percentage or a fixed dollar amount.

To apply a discount to an invoice, on the browser:

  1. On Step 2 of invoice creation, select Add beside the Discount field

  2. Select a pre-saved discount or select + Add New Discount

  3. Choose Percentage (for example, 10%) or fixed amount (for example, $50)

  4. Name the discount so your client sees what it's for

  5. Select whether the discount applies before or after taxes

  6. Continue through the invoice flow to complete and send your invoice

To apply a discount to an invoice, on the mobile app:

  1. Select the Payments button along the bottom menu.

  2. Select the Invoicing button.

  3. Select New Invoice and select your customer to invoice.

  4. Enter the Invoice ID, issue date, and payment due date. Grow Plan and Scale Plan customers can toggle the recurring invoice option here.

  5. Select your pre-existing line items from your catalog. The associated tax rate with this line item will automatically be applied.

  6. Under the Subtotal, select the Add button beside Discount. You can choose from any existing discounts you have previously created.

    1. Note: Should you need to create or edit discount rates, this can only be done within your Invoice Settings on the dashboard (not the mobile app).

  7. Continue through the remaining invoice flow to finalize and send your invoice.

How do I create or edit tax rates and discounts?

Save tax rates once in your invoice settings and they'll be available on every future invoice you create. This is currently only available on the browser, and not the mobile app.

  1. Go to Invoices, then Settings, then Taxes & Discounts

  2. Select Create New Tax or Create New Discount, or select an existing rate to edit

  3. Enter the name and the percentage

  4. Select Save

Can I apply a discount before or after tax?

Yes. You choose the order on the invoice itself, and you can change the default within the browser under Invoices > Settings > Taxes & Discounts.

  • Before tax: the discount reduces the taxable subtotal, so tax calculates on the lower amount

  • After tax: tax calculates on the full subtotal, and the discount comes off the final total

Will my client see the tax and discount on the invoice?

Yes. Taxes and discounts appear clearly on the client-facing invoice, the payment page, and the PDF export, so the math is transparent.

Common issues

  • A tax rate isn't showing up on the invoice. Confirm the rate is saved under Taxes & Discounts, and that you applied it to the line item rather than the invoice total.

  • Only one discount will apply. Each invoice supports a single discount. If you need to layer discounts, adjust the line item prices instead.

  • The discount looks like it was applied twice. Check the "before or after taxes" setting and preview the invoice PDF before sending.

Talk to our Customer Experience team

If this article did not fully answer your question, our Customer Experience team is here to help.

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