What should a web design invoice include?
Your business name and contact details, the client's legal name, an invoice number and date, the project or agreement it bills against, and one line per deliverable with what was delivered and when: the website plan, the design and build, add-ons such as booking or a contact form, extra revision rounds with the hours, training, and hosting or maintenance with the months covered. Then sales tax if your state taxes any of it, the total, the due date, how to pay, and when ownership of the site passes to the client. In Texas, put untaxed work like a stand-alone plan or training on its own line: the rule presumes a single charge is taxable. The example: $7,762.50 of work, $410.52 Texas tax on 80% of the taxable lines, $8,173.02 due.
Line items web designers actually bill
- Website plan: discovery, sitemap, wireframes. Quote and bill it on its own if you want it untaxed in Texas.
- Design and build, priced per project or per page, with the page count, the platform and the launch date.
- Add-ons: booking or e-commerce setup, forms, maps, integrations, content loading. One line each.
- Revisions beyond the number included, with the round, the date asked for and the hours.
- Training for the client's staff, with the date and the hours.
- Hosting and maintenance, with the months covered.
- Sales tax as its own line when only some lines are taxed, with the working in the description.
How the example adds up
| Part of the invoice | Texas tax? | Amount |
|---|---|---|
| Website plan | No: stand-alone plan, stated separately | $1,400.00 |
| Design and build | Yes: website creation | $5,200.00 |
| Booking, form and map | Yes: website creation | $600.00 |
| Extra revision round | Yes: 3 h × $95 | $285.00 |
| Staff training | No: 1.5 h × $95, stated separately | $142.50 |
| Hosting and maintenance | Yes: 3 months × $45 | $135.00 |
| Taxable lines | $5,200 + $600 + $285 + $135 | $6,220.00 |
| Taxed part | 80% of $6,220.00 | $4,976.00 |
| Texas sales tax | 8.25% of $4,976.00 | $410.52 |
| Total due | $7,762.50 of work + $410.52 tax, by Nov 6 | $8,173.02 |
The rate is Austin's: Texas state tax is 6.25% and local jurisdictions can add up to 2% "for a maximum combined rate of 8.25 percent" (Texas Sales and Use Tax), and the Comptroller's city rate table lists Austin (Travis Co) at 1% plus 1% Austin MTA, 8.25% total. The studio, the client, the prices and the permit number are made up for the arithmetic.
In InvoiceSnap. The tax goes on its own line because only some lines are taxed and only 80% of those, so the Tax % field stays at 0. The permit and agreement numbers sit in the License field so they print under your name.
Texas: which lines are taxed
Building, fixing and maintaining a site: taxed. "Website creation, repair, and maintenance are taxable data processing services when they involve the storage, manipulation, compilation, and entry of data. However, simply developing a blueprint or plan for a website is not data processing services." (34 TAC §3.330(b)(12), read in the October 16, 2026 Texas Register, which reprints the rule with a proposed amendment; see below.) The Tax Code's definition covers "word processing, data entry, data retrieval, data search, information compilation, payroll and business accounting data production, and other computerized data and information storage or manipulation" (§151.0035).
What the Comptroller told one agency. In a 2024 private letter ruling about website services (STAR 202402020L): "Taxpayer’s stand-alone website blueprinting service is a nontaxable service." and "The creation and maintenance of websites involve the compilation, storage, and manipulation of data and meet the definition of data processing under Section 151.0035 and Rule 3.330(a)(1)." That agency sold plan and build for one price, and the letter said "Under Rule 3.330(d) a single charge for all of those services together is presumed taxable." The letter answers that agency's facts; the rule is what applies to everyone.
80% of the charge. "There is exempted from the taxes imposed by this chapter 20 percent of the value of information services and data processing services." (Tex. Tax Code §151.351.) The Comptroller's Taxable Services publication (96-259, 01/2026): "Twenty percent of the charge for data processing services is exempt from tax." It lists "web hosting, web site creation and maintenance" among its examples and says "Merely using a computer as a tool to help perform a professional service is not a data processing service."
Separate lines or the whole price is taxed. "Where nontaxable related services and taxable services are sold or purchased for a single charge and the portion relating to taxable services represents more than 5.0% of the total charge, the total charge is presumed to be taxable." The fix is on the invoice: "The presumption may be overcome by the data processing service provider at the time the transaction occurs by separately stating to the customer a reasonable charge for the taxable services." (§3.330(e)(2).) An untaxed related service has to be one that is commonly sold on its own and is "distinct and identifiable", and the rule's examples are "consultation, development of and preparation of feasibility studies, design and development, or training." (§3.330(e)(1).)
Hosting. "Internet hosting, as defined by Tax Code, §151.108 (Internet Hosting), is a taxable data processing service when the user stores data on the service provider's hardware, or processes data on software that is owned, licensed, or leased by the user or provider." (§3.330(b)(6).)
Washington state draws the line somewhere else
"Starting Oct. 1, 2025, custom website development services are subject to Washington retail sales tax." (Washington DOR, Custom website development.) The plan and the training are in: the interim guidance lists "Website design services. (e.g. planning efforts, analysis, engineering, programming, testing, and deployment)", and the DOR page says "Website consulting and training services that support the functionality and operation of a website are also subject to sales tax as website development services." Hosting is out: "These services do not include web hosting or domain name registration services." The example's untaxed lines in Texas would be taxed in Washington, and its hosting line would not.
Who owns the site
Put it on the invoice, but the signed agreement is what counts. A copyright transfer "is not valid unless an instrument of conveyance, or a note or memorandum of the transfer, is in writing and signed by the owner of the rights conveyed or such owner's duly authorized agent." (17 U.S.C. §204(a).) A commissioned work is a work made for hire only in nine listed categories and only "if the parties expressly agree in a written instrument signed by them that the work shall be considered a work made for hire." (17 U.S.C. §101); "If a work fails to satisfy any of these requirements, it is not a work made for hire." (Copyright Office Circular 30.) A website isn't named in the list, so the example relies on a signed assignment that takes effect on payment, and keeps WordPress, the theme and plugins under their own licenses.
The 1099 threshold is now $2,000
"For tax years beginning after 2025, the minimum threshold amount for reporting certain payments required to be reported on certain information returns and/or perform backup withholding on those payments increased to $2,000 and may be adjusted for inflation beginning in calendar year 2027." (IRS Instructions for Forms 1099-MISC and 1099-NEC, 12/2026.) Business clients file a 1099-NEC "for each person in the course of your business during the year to whom you have paid at least $2,000 in:" non-employee services, but not, generally, for "payments to a corporation (including a limited liability company (LLC) that is treated as a C or S corporation)." The example's client pays more than $2,000 to a single-member LLC, so its notes record the W-9.
Where the rules don't line up
- The phrase "design and development" appears on both sides. §3.330(e)(1) lists "design and development" among its examples of untaxed related services, while §3.330(b)(12) taxes website creation and the 2024 letter taxed an agency's "custom design and development" of websites. The example follows the website-specific text and taxes the build; only the plan and the training are left out.
- Publication 94-127 doesn't mention the 20%. The Comptroller's Data Processing Services are Taxable (94-127, 03/2022) lists "Internet services: creating web (home) page and providing server space." as taxable and "Developing specifications for designs." as not, but says nothing about the 20% exemption. The statute, the rule, publication 96-259 (01/2026) and the 2024 letter all apply it, so the example does.
- The rule is being amended. The October 16, 2026 Texas Register proposes deleting the marketplace-provider paragraph, which would renumber the website paragraph from (b)(12) to (b)(11) and hosting from (b)(6) to (b)(5). The website, hosting, 20% and separate-charge text quoted here is not marked for change. The 2024 letter cites the separate-charge rule as "Rule 3.330(d)"; in the current text it is (e)(2).
What we did not check
- Sales tax on web design in any state other than Texas and Washington, and Washington rates, sourcing and B&O tax.
- When Texas tax is due on a deposit paid before work starts.
- Domain registration, stock photos, logos and other finished art (Texas treats graphic arts under other rules), custom software and apps.
- Reselling hosting you buy from a host (resale certificates), and clients outside Texas or with locations in several states.
- Whether a website, or part of one, can fit one of the nine work-made-for-hire categories; ask a copyright attorney.
- Typical web design prices; the example's are made up.
This is a summary of 34 TAC §3.330 (as reprinted in the October 16, 2026 Texas Register), Tex. Tax Code §§151.0035 and 151.351, Comptroller publications 96-259 and 94-127, STAR 202402020L, the Washington DOR custom website development page and interim guidance, the IRS 2026 Instructions for Forms 1099-MISC and 1099-NEC, 17 U.S.C. §§101 and 204 and Copyright Office Circular 30, as read on October 25, 2026, not legal or tax advice. Check with the Texas Comptroller, the Washington DOR, or your accountant or attorney.
Designing the logo as well? The graphic design invoice template shows why Texas taxes finished art even sent by email, and why California doesn't.
FAQ
How do I make a web design invoice?
Start from the signed proposal or agreement and copy its phases onto separate lines: plan, design and build, add-ons, revisions beyond the number included, training, then hosting or maintenance with the months. Put hours in Qty and your hourly rate in Unit price for anything billed by the hour. If your state taxes some lines and not others, work the tax out and add it as its own line, as the example does, and leave the Tax % field at 0. Put the agreement number and your sales tax permit number in the License field and the ownership and payment terms in the notes. In InvoiceSnap the totals update as you type and the free preview PDF shows the finished invoice.
Is web design taxable in Texas?
Building a site is; planning one is not. 34 TAC §3.330: "Website creation, repair, and maintenance are taxable data processing services when they involve the storage, manipulation, compilation, and entry of data. However, simply developing a blueprint or plan for a website is not data processing services." The Comptroller's 2024 letter ruling to one agency said the same about its services: "Taxpayer’s stand-alone website blueprinting service is a nontaxable service." and "Taxpayer is responsible for collecting and remitting Texas sales and use tax on 80 percent of its charges for its website creation, custom design and development, and website support services." So the example taxes the build, the add-ons, the revision hours and hosting, and not the separately billed plan.
Why is Texas tax charged on only 80% of a website invoice?
Because the Tax Code exempts a fifth of every data processing charge: "There is exempted from the taxes imposed by this chapter 20 percent of the value of information services and data processing services." (Tex. Tax Code §151.351.) The rule puts it as "Twenty percent of the total amount charged for data processing services is exempted from tax." In the example, the taxable lines add up to $6,220.00; 80% of that is $4,976.00, and 8.25% of $4,976.00 is $410.52. That works out to 6.6% of the taxable lines.
Is website hosting taxable in Texas?
Yes, as data processing. The Comptroller's Taxable Services publication lists "web hosting, web site creation and maintenance" as examples, and 34 TAC §3.330 says "Internet hosting, as defined by Tax Code, §151.108 (Internet Hosting), is a taxable data processing service when the user stores data on the service provider's hardware, or processes data on software that is owned, licensed, or leased by the user or provider." The example bills three months of hosting and maintenance at $45 and taxes it on 80% with the build. Washington state is the opposite; see below.
Why are the website plan and the training on separate lines?
Because Texas taxes the whole price when taxable and untaxed work are sold together. 34 TAC §3.330: "Where nontaxable related services and taxable services are sold or purchased for a single charge and the portion relating to taxable services represents more than 5.0% of the total charge, the total charge is presumed to be taxable." and "The presumption may be overcome by the data processing service provider at the time the transaction occurs by separately stating to the customer a reasonable charge for the taxable services." The rule's examples of untaxed related services include consultation and training. So the example states the $1,400 plan and the $142.50 training separately at prices it also charges for them alone, and the build is priced on its own.
Do I need a Texas sales tax permit to sell web design?
If you build or host sites for Texas clients, the rule says yes: "Except for small remote sellers described in §3.286(b)(2)(B) of this title (relating to Seller's and Purchaser's Responsibilities), a seller of data processing services must obtain a Texas sales and use tax permit and collect and remit tax on charges for data processing services, or accept properly completed resale, exemption, or direct pay permit certificates in lieu of collecting tax." The example puts a placeholder permit number in the License field so it prints under the studio's name.
Is website design taxable in Washington state?
Yes, and more of it than in Texas. The Washington Department of Revenue says: "Starting Oct. 1, 2025, custom website development services are subject to Washington retail sales tax." That includes the plan and the training: its interim guidance lists "Website design services. (e.g. planning efforts, analysis, engineering, programming, testing, and deployment)", and "Website consulting and training services that support the functionality and operation of a website are also subject to sales tax as website development services." Hosting is the exception: "These services do not include web hosting or domain name registration services." So the same invoice for a Washington client would tax the plan and the training and not the hosting. We did not work out Washington rates or sourcing for this page.
Can I bill travel or software costs on top of a Texas website invoice?
You can bill them, but they don't escape tax. 34 TAC §3.330: "Charges for services or expenses directly related to and incurred while providing the taxable service are taxable and may not be separated for the purpose of excluding these charges from the tax base. Examples would be charges for meals, telephone calls, hotel rooms, or airplane tickets." If you pass through travel for an on-site build in Texas, add it to the taxable lines before you work out the 80%.
Who owns the website after the client pays?
Whoever the signed paperwork says; without it, usually you, the freelancer. A transfer of copyright "is not valid unless an instrument of conveyance, or a note or memorandum of the transfer, is in writing and signed by the owner of the rights conveyed or such owner's duly authorized agent." (17 U.S.C. §204(a).) Calling it work made for hire doesn't help on its own: a commissioned work counts only if it fits one of nine categories and "if the parties expressly agree in a written instrument signed by them that the work shall be considered a work made for hire." (17 U.S.C. §101), and the Copyright Office adds "If a work fails to satisfy any of these requirements, it is not a work made for hire." (Circular 30). A website is not one of the nine by name. The example points to a signed assignment that takes effect on payment in full and says WordPress, the theme and plugins stay under their own licenses.
Will my client send me a 1099 for web design?
If the client is a business and pays you at least $2,000 in the year, and you are not a corporation, expect one. The IRS instructions say: "File Form 1099-NEC, Nonemployee Compensation, for each person in the course of your business during the year to whom you have paid at least $2,000 in:" services by non-employees, and "For tax years beginning after 2025, the minimum threshold amount for reporting certain payments required to be reported on certain information returns and/or perform backup withholding on those payments increased to $2,000 and may be adjusted for inflation beginning in calendar year 2027." Payments to a corporation, including an LLC taxed as one, are generally not reported. Send a Form W-9 before the first payment; the example's notes say when it went out.
How do I bill an extra revision round?
As its own line that names the round, the date it was asked for and how many rounds the agreement includes, with the hours in Qty: "Extra revision round requested Oct 9 (3rd round; 2 included)", 3 hours at $95. In Texas it is part of building the site, so the example taxes it with the build.
How do I bill monthly website maintenance?
One line per period with the months in the description and the number of months in Qty, like the example's "Hosting and maintenance, Nov 2026 to Jan 2027", 3 × $45. After launch, send it on its own invoice each month or quarter. In Texas, maintenance and hosting are both taxable data processing on 80% of the charge. In Washington, support of a site is taxable but hosting is not, so split the two there.
Does this work for web development or web developer invoices?
Yes. Use the same layout: plan, build, add-ons, revisions, training, hosting. For development billed by sprint or by the hour, put the hours in Qty, the rate in Unit price and the sprint dates or ticket numbers in the description. The Texas rule quoted here covers website creation, repair and maintenance whether you call it design or development; custom software other than websites, apps and logos or other finished art have their own rules, which we did not check for this page.
Is InvoiceSnap free?
Yes. You can fill in the invoice and download a watermarked preview PDF free with no signup. A clean PDF is $4 one-time for 7 days of unlimited invoices (USDC; card coming soon).
Is my data uploaded?
No. The PDF is generated in your browser; your client and pricing details are not sent to a server.
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