You can mark the Labor as non-taxable via LineAttributes.

Thanks Matt but that doesnt answer it. We quote labor and material in one lump sum. I would like to only charge the customer tax on material. Is there a way to input the material cost into the Product/Service and have that taxed only?
Hi John,
You're doing something like this (based on a 20% tax rate)?

If Material and Labor is within one line item, how is QW to know what element of that is Material and what is Labor?
Screenshots = 1,000 words ;)
Ref. screenshot attached: perhaps have Labor and Material as separate Line Items that are then grouped. Then modify your PDF Layout and/or QuoteValet HTML Template to only show the Group Header Line Item and not the Group Member Line Items.

John Hamling
We have "Products" that are Material and Labor. We need to show a line item total for tax. Is there a way for our "Product" to have show lump sum (Material and Labor) but only have the tax on material show in tax line?
Example
Lump sum product is $5k. Of the lump sum, Material is $2k and Labor is $3k. I would like Quotewerks to know that the tax at the bottom is only on the $2k.