If you have any items that have different tax rates than your sales tax, you can create a tax class for them. For example, your state may charge a lower tax rate for clothing.
You can have different tax rates apply to each sales class. For an item to be associated with a sales tax class, the tax class needs to be applied to it. The tax class is located in the Pricing area in of inventory items.
To create a tax class
- From the main menu, click Settings > Tax Classes > + New Tax Class.
- Name the class for the type of item is will apply to, such as clothing and click Save Changes.
- To set a tax rate for this class, click Settings > Sales Taxes.
- Click the Tax Name from the list.
- In the Add Sales Class Tax Rate section, select the rate for Class.
- Enter the rate and click + Add New Rate.
- For this rate to apply to an item on the register, make sure the item's class is set appropriately within the item details page of that inventory item.