For each tax you report, you must set up a tax item. If a tax rate changes (such as a state sales tax increase), you can edit the tax item to change the rate.
This name becomes one of the available sales tax choices when you fill in a sales form.
The description prints on your sales forms after the final line item. You cannot edit it on the forms themselves.
QuickBooks assumes the rate is a percentage. For example, enter 7.25 if the rate is 7.25%.
If the tax agency is not already on your Vendor list, QuickBooks adds it to your list now.