---
title: Create a Taxed Contract with Taxwire
url: https://docs.maxio.com/billing/taxes/integrations/taxwire/create-a-taxed-contract-with-taxwire
applies_to: Maxio Core
updated: 2026-10-20
---

# Create a Taxed Contract with Taxwire

Use a taxed contract to confirm that Maxio can calculate Taxwire sales tax for taxable items before billing.

## Before you start

Confirm that the Taxwire setup and required tax calculation data are complete before creating a taxed contract. Missing addresses, taxability settings, or credentials can prevent tax from calculating correctly.

- Taxwire is enabled in Maxio.
- **Invoicing Suite and Billing Portal** is enabled for your Maxio Core account by Maxio Support. Without it, Maxio Core can't hand off Contract invoices for Taxwire tax calculation.
- The tax origin address is complete.
- The customer or invoice has the address required by your tax address setting.
- The invoice includes taxable items.
- The invoice currency is supported by your Taxwire setup.

Taxwire supports USD and most international currencies, including CAD, GBP, EUR, JPY, and AUD. To check support for a specific currency, contact <a href="mailto:support@taxwire.com">support@taxwire.com</a>.

## Step 1: Create or update the item

The item catalog controls which items are taxable. Review the catalog before creating the contract so Taxwire receives the correct line item details.

1. Define items in Maxio Core.
2. Select **Is Taxable** on each item that sales tax should apply to.
3. Enter a Taxwire product category in the item's **Tax Code** field. Use **Find Tax Categories** to look up valid values.

A taxable item with no **Tax Code** isn't sent to Taxwire as taxable, so its tax calculates as $0. Maxio Core lists these items in a warning on the invoice so you can add the missing codes.

## Step 2: Create the customer record

The customer record must include the address required by your tax address setting. Taxwire uses the customer destination address to calculate applicable sales tax.

1. Enter the customer address information required by your tax address setting.
2. For shipping-based tax settings, collect a complete shipping address.
3. For billing-based tax settings, collect complete billing address details.

## Step 3: Configure the contract and invoice

After the item and customer record are ready, add taxable items to the contract invoice. Preview the invoice before completing the issuing and sending of the invoice.

1. Add taxable items to the contract invoice.
2. Preview the invoice to confirm tax is calculated before billing. To refresh the tax on an invoice you've changed, use **Re-estimate Sales Tax**.
3. Complete sending and issuance of the invoice when the tax amount looks correct.

Previewing an invoice or re-estimating its tax calculates tax without recording anything in Taxwire. Taxwire records a finalized transaction only when the invoice is issued. If you edit an open invoice after it's issued, Maxio recalculates the tax and updates the same Taxwire transaction.

## Test before going live

Test the full Taxwire workflow using a Taxwire Sandbox account before connecting your live Taxwire account. This helps confirm tax amounts, jurisdiction details, exemptions, and Taxwire metadata before live invoices are created.

1. Connect your Maxio test site to Taxwire using the API key from your Taxwire Sandbox account.
2. Run sample contracts, invoices, voids, and refunds.
3. Verify tax amounts, jurisdiction breakdowns, and exemption behavior.
4. Confirm jurisdiction detail appears on invoices. Maxio also stores the Taxwire transaction ID in the invoice metadata. It isn't displayed on the invoice, so contact Maxio Support if you need it.

Once validated, connect your production site using the API key from your live Taxwire account.