Alameda County CA District tax is 2.5%. QB online is only charging 2%.This means we have to pay $2700 out of our pocket since we didn't collect correct amt from customer

Hello @nbokish,

Let me help share information about how QuickBooks calculate your sale taxes.

To start with, QuickBooks is updating sales taxes including rates base on the exact location chosen when setting up your state agency and the mandated sales tax rate. You can read through this article to learn more: How QuickBooks Online calculates sales tax?

With this, I'd recommend contacting your state tax agency to confirm what is exactly the sales tax rate you need to track and pay to them. While waiting, consider adding the exact sales tax rate you've mentioned and use it to track your sales: 

1. Go to the +New button.
2. Under CUSTOMERS, select Invoice.
3. Select one of your clients in the Customer field.
4. Enter the details as necessary.
5. On the Select tax rate menu, select +Add rate.
6. Select Single.
7. Enter the agency name base on your customer's location. Say California Department of Taxation.
8. Type in the sales tax rate.
9. Click Save and then, Save and close.

Additionally, here's an article you can read to learn more about the accuracy of your sales tax calculation: Learn how QuickBooks Online calculates sales tax.

You can also check and read through the steps outlined in this helpful article to pull up a report and understand how much sales tax you owed: Check how much sales tax you owe in QuickBooks Online.

Stay safe and leave a comment below if you have any other questions. I'll be here to lend a hand.