Improved Tax Rate Accuracy with 4-Decimal Precision

What's New?

With a joint effort from Invoicing & Estimates and Core Payments teams, an enhancement that would allow businesses to benefit from precise 4-decimal tax rate calculations across invoices, estimates, subscriptions, transactions, and checkouts, is now live. This update ensures accuracy with respect to fractional tax rates and tax amounts.

Tax Rate Precision

Tax rates are now calculated and displayed up to 4 decimal places (e.g., 7.1250%).
Tax amounts continue to round to 2 decimals as per currency standards (e.g., $1.78).

Consistent Display Across the Platform

Applies to invoices, estimates, transaction details, subscription details, receipts, other checkouts (Forms, Funnels, Stores, Payment Links, etc.) and CSV exports.
Tax percentages shown with 4 decimals across the UI and in API responses.
Consistency ensured with invoicing flows for accurate reporting.

Integration Alignment

Validated with external systems like QuickBooks Online (QBO), Stripe, and Shopify to support 4-decimal tax rate display.
Import/export of invoices, orders, transactions and subscriptions aligned with the new precision.

Backward Compatibility

Existing records remain unchanged.
Only new invoices, estimates, orders, transactions, and subscriptions created after this update will follow 4-decimal logic.
Already signed documents and contracts with pending invoices will not change to keep consistency in what was agreed upon and what is paid.

Where can I find this?

Payments → Invoices (builder, previews, exports)
Payments → Estimates (builder, previews)
Payments → Checkouts (tax breakdown)
Payments → Transactions (details and exports)
Payments → Subscriptions (details page and receipts)

What's Next?

Payments with 4 decimal tax rate precision on mobile POS invoices