# Manage Taxes & Fees

## Summary
This tutorial guides you through adding and configuring taxes and fees in BuilderPal, ensuring accurate cost tracking and budgeting for your construction projects without affecting profitability calculations incorrectly.

## Prerequisites
- You must have one of the following roles: **Admin (GC)**, **Admin (SUB)**, **Admin (SHORTCUT)**, **Team Project Manager**, **Team Finance Manager**, or **Team Business Manager**.
- Access to the **Team Office** in BuilderPal at https://app.builderpal.com.

## Steps
1. **Navigate to the Taxes & Fees page** — go to the **Team Office** and select **Taxes & Fees**.

    ![](https://colony-recorder.s3.amazonaws.com/files/2025-09-28/5ea80c9f-d95d-4ef1-bc6c-00786115fc17/stack_animation.webp)

2. **Add a new tax or fee** — click the **+** button in the top right corner.

    ![](https://colony-recorder.s3.amazonaws.com/files/2025-09-28/b4a67e0d-4ff6-43f0-8c4a-99fafc4c540f/stack_animation.webp)

3. **Enter the details** — fill in the name, abbreviation, and description for the tax or fee.

    ![](https://colony-recorder.s3.amazonaws.com/files/2025-09-28/4f87ef20-0bea-4b11-a113-45c7a2836df6/stack_animation.webp)

4. **Configure category and settings** — select the category (**Tax**, **Fee**, or **Other**), unit type (% or dollar amount), and default amount. The status starts as inactive until used in a cost item; archived taxes/fees cannot be used with new cost items.

    ![](https://colony-recorder.s3.amazonaws.com/files/2025-09-28/07db7327-6653-40a0-948a-11e5da176356/stack_animation.webp)

5. **Set default options** — choose **Exclude from Budget** to hide it as a pass-through cost that doesn’t affect profit, and **On by Default** to apply it automatically to all new cost items.

    ![](https://colony-recorder.s3.amazonaws.com/files/2025-09-28/bc4447d9-a12c-44bb-8d37-77ddc7a5145f/stack_animation.webp)

6. **Save and verify** — click **Save**, then confirm by creating a new cost item in your project estimate and budget.

    ![](https://colony-recorder.s3.amazonaws.com/files/2025-09-28/bd4d5a87-37ff-4d66-adc5-53f1f7612e58/stack_animation.webp)

## Confirmation
You’ll know it worked when the tax or fee appears in your list, changes to active upon use in a cost item, and applies correctly without impacting budgets if excluded.

## FAQ
Q: Why is my tax or fee showing as inactive?  
A: New taxes and fees start inactive and become active only after being used in at least one cost item.

Q: What happens if I archive a tax or fee?  
A: Archived items cannot be applied to new cost items, but they remain on existing ones.

Q: How does "Exclude from Budget" affect my projects?  
A: It treats the tax or fee as a pass-through cost, hiding it from budget calculations to avoid impacting profit margins.

Q: Can I edit a tax or fee after saving?  
A: Yes, return to the Taxes & Fees page and click on the item to edit its details, but changes may not retroactively apply to existing cost items.

Q: What's the purpose of the abbreviation field?  
A: The abbreviation provides a short code for quick reference in estimates, budgets, and reports.

## Related Articles
- Manage Cost Codes
- Create a Budget
- Finance Center Overview
- Edit Project Budget
- Budget Report