Sales tax is incredibly important to any business and you want to make sure you are calculating the correct amount. You can create as many tax rates as needed. This is particularly important in US States like New York where all clothing less than $110 is tax-free. Note that each product will need its corresponding tax rate assigned when inventoried. These are not automatically applied.
If you're unsure of your state's tax rate, be sure to look it up first.
To create and manage Tax Rates:
- Go to Preferences > Admin then click “Taxes & Policies”
- The first tax rate displayed is your default rate and is what is applied to new products unless you specifically change it.
- You can add or delete additional tax rates using the yellow + and red x icons.
- Enter rates in whole number format. For a rate of 6.75%, enter it as 6.75.
- Click "Save" when finished.