Applying tax to a sale

If you have set up a default sales tax, assigned taxes to your customers, and marked taxable items you sell as taxable, QuickBooks automatically calculates and applies the tax when you make a sale.

To apply a different tax to a sale:

Select the tax you want to apply from the list of tax items at the bottom of the sales form.

To apply tax to an item you normally don't tax:

In the Amount column of the sales form, click the space between the line item amount and the right edge of the column. A “T” appears next to the line item to indicate you are collecting tax on the item.

To make a non-taxable sale:

To sell to an out of state customer:

Choose the special “Out of state, 0.00% tax rate” item as the tax for the sale. QuickBooks then records the sale as non-taxable, out of state, so you can report it when you pay taxes.

If you use a tax group...

QuickBooks calculates each tax in the group individually and then adds the individual taxes together to get the total tax. Because QuickBooks rounds the individual tax amounts to the nearest cent, the total for tax group may be slightly different than the total you would get if you combined the rates of the individual taxes and applied the single rate to the sale. Don't worry about this discrepancy; QuickBooks calculates and reports each individual tax amount correctly.