What to put on a contractor invoice
A contractor invoice needs your business name and license number, the customer and the job site, an invoice number, the invoice date and a due date, the work itemized as labor and materials, sales tax where your state charges it, what the customer already paid, and the balance due with the ways to pay it. This template has a place for every one of those.
No federal rule says what a private invoice must contain; the IRS only asks you to keep records that back up your income. The fields below are what gets you paid without a phone call asking what a line means.
| Field | Why it's there |
|---|
| License number | California, Florida, Arizona and Nevada require it on bids or contracts; it's in the header of every file so you never forget it. |
| Job site | Customers with rentals or a second home need to know which job this is. Leave it empty when it's their home address. |
| Invoice number and due date | A number to reference when they pay, and a real date instead of "net 15" they have to count. |
| Labor and materials on their own lines | Easier to read, and in many states only one of the two is taxed. |
| Change orders as their own section | The customer sees the work they approved later, with its own subtotal. |
| Sales tax on taxable lines only | Mark each line taxable or not; the template taxes only those and shows the base it used. |
| Paid to date and balance due | The deposit or progress payments already received, then the number they owe now. |
| Payment methods and instructions | Check, bank transfer, card, Zelle: show what you take and who checks are payable to. |
The example invoice, line by line
The example is a hypothetical deck rebuild: $9,043.40 of work, $255.25 of sales tax, a $9,298.65 total, $3,000 already paid and $6,298.65 due by Nov 17, 2026. The business, the customer and the 7% tax rate are made up; swap in yours.
| Section | Lines | Subtotal |
|---|
| 1. Labor | Tear-out and haul-away $950; 46 hr framing, decking and rail at $72/hr = $3,312 | $4,262.00 |
| 2. Materials | Framing, footings and hardware $1,486.40; 192 sq ft composite decking at $11.25 = $2,160; dumpster $395 | $4,041.40 |
| 3. Change order #1 | 4x4 stair landing with two steps, approved Oct 21 | $740.00 |
| Subtotal | | $9,043.40 |
| Sales tax | 7% on the two taxable material lines ($3,646.40) | $255.25 |
| Total | | $9,298.65 |
| Paid to date | Deposit received at signing | −$3,000.00 |
| Balance due | Due within 15 days | $6,298.65 |
Notice the dumpster isn't marked taxable and neither is labor. That's an example setting, not tax advice: whether labor, materials or fees are taxed depends on your state and on how the contract is written. In Texas, for instance, labor on a residential remodel isn't taxed, and a separated contract passes sales tax on materials to the customer while a lump-sum contract doesn't. Ask your state's revenue department, or your accountant, once, then set the template to match.
Want to see it as the customer will? Open the filled example PDF.
How to fill out this contractor invoice template
- Add your business once. Name, address, phone, email, license number and logo. The page remembers them on this device, so your next invoice starts with them filled in.
- Add the customer and the job. Their name and billing address, the job site if it's different, a job name they'll recognize and one or two lines on what you did.
- Number and date it. Keep numbers in sequence (INV-1047, INV-1048) and set a due date.
- List the work. One line per task or material, with a quantity, a unit and a unit price. Group lines into sections (labor, materials, change orders, or by phase) when the job is big enough to need it.
- Set tax, discount and payments. Your sales tax rate, which lines it applies to, and what the customer already paid.
- Download and send. PDF to email or text, Word or Excel to keep editing. Send it the day the work is done, while the job is fresh.
Total = subtotal − discount + sales tax. Balance due = total − paid to date. The Excel file does this math with formulas, so a change to a line updates everything below it.
Deposits, progress billing, change orders and retainage
Deposits. Show the deposit you collected in "Paid to date" so the balance is right. Some states cap home improvement deposits: California allows the lesser of 10% or $1,000, Maryland one-third, Massachusetts one-third or the cost of special-order materials. More on setting them in contractor payment terms.
Progress billing. On a long job, send one invoice per milestone and put the earlier payments in "Paid to date". The progress billing guide walks through the schedule.
Change orders. Give each approved change its own section with the date it was approved, like the example. The customer sees the original scope and the extras separately. See how to handle construction change orders.
Retainage. If the contract holds back a percentage until completion, add a line such as "Less 5% retainage" with a negative amount, not taxable, so the balance matches what you'll be paid now. Then bill it on the final invoice. Details in retainage in construction.
Using it as a construction invoice template
A construction invoice is the same document with more lines, so this template doubles as one. Name the sections after the phases on your contract (sitework, framing, rough-in, finishes) and each phase gets its own subtotal. For a general contractor billing a phase at a time, the PDF keeps the section headings and the Excel file keeps a subtotal formula per section.
If you write estimates the same way, the construction estimate template uses the same layout, so the invoice reads like the estimate the customer signed.
Contractor invoice mistakes that slow down payment
- One line that says "Labor and materials". The customer can't check it, so they call you instead of paying.
- No due date. "Upon receipt" gets read as "whenever". Print a date.
- Forgetting the deposit. An invoice for the full total after a deposit looks like a double charge.
- Tax on everything, or on nothing. Mark the taxable lines the way your state wants.
- Change orders buried in the original lines. Keep them separate and dated.
- No way to pay. List the methods you take and who checks are payable to. If you take cards, see how to accept credit card payments.
The whole process, from the first invoice to chasing a late one, is in how to invoice as a contractor.
Questions about contractor invoices
Is this contractor invoice template free?
Yes. Fill it in on this page and download it as a PDF, Word or Excel file, or download the blank versions. There is no email gate and no signup, and the blank files work without filling anything in on the page.
What should a contractor invoice include?
Your business name, contact details and license number; the customer and the job site; an invoice number, date and due date; itemized labor and materials with quantities and unit prices; sales tax on the taxable lines; payments already received; the balance due; and how to pay. Add change orders as their own lines.
Do I need my license number on an invoice?
Several states require it on bids, contracts or estimates, including California, Florida, Arizona and Nevada. None of those rules name invoices specifically, but the invoice usually travels with the contract, so the template puts the number in the header. Check your state's licensing board for its exact wording.
Should a contractor charge sales tax on labor?
It depends on the state and the job. Texas, for example, doesn't tax labor on a residential remodel but taxes nonresidential repair on the total price. The template lets you mark each line taxable or not and taxes only those lines. Confirm your rules with your state's revenue department.
How do I show a deposit on a contractor invoice?
Put it in "Paid to date". The invoice shows the full total, subtracts what you've received and prints the balance due. On a progress-billed job, the same field holds every earlier payment, so each invoice ends on what's owed now.
Does the Excel invoice template calculate the totals?
Yes. Each line multiplies quantity by unit price, sections add up, and the subtotal, discount, sales tax, total, paid to date and balance are formulas. Type Y in the Tax column for taxable lines and fill in the yellow cells. It prints on one Letter page.
Can I use this invoice template in Google Docs or Google Sheets?
Yes. Download the Word or Excel file, upload it to Google Drive and open it with Google Docs or Sheets. The layout carries over, and in Sheets the formulas keep working.
What's the difference between a contractor invoice and an estimate?
An estimate is what the job should cost, sent before the work so the customer can accept it. An invoice asks for payment for work done. Use the construction estimate template first, then this one with the same lines once the job is finished.
