Creating tax classes

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

  1. From the main menu, click Settings > Tax Classes > + New Tax Class.
  2. Name the class for the type of item is will apply to, such as clothing and click Save Changes.
  3. To set a tax rate for this class, click Settings > Sales Taxes.
  4. Click the Tax Name from the list.
  5. In the Add Sales Class Tax Rate section, select the rate for Class.
  6. Enter the rate and click + Add New Rate.
  7. 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.
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