QuickBooks HelpQuickBooksHelpIntuit

Edit tax rates

by Intuit•8• Updated 3 days ago

Update tax rates in QuickBooks Online to make sure you’re collecting the right amount.

A change to your tax rate applies to all future transactions, even ones dated before the change, but not past ones. Reports and records will show the data for both rates.

What you’ll need

Before you try to change the tax rate on a recurring transaction that is automatically charged, create a new tax rate and edit the recurring transaction to use it. Then go to your tax settings and make the old tax rate inactive.

Otherwise, you’ll get the following error: 

"Error: To process this credit card transaction, please enter a credit card number. (code:"INDIRECTTAX-15811")"

Edit your tax rate

  1. Follow this link to complete the steps in product Open this link in a new window
  2. Next to Tax, select the ▼ dropdown, then select the tax agency you want to edit.
  3. Select Edit [agency name] ▼ dropdown, then select Edit rates.
  4. In the tax rate table, select the rate you want to change and select Edit from the Action column.
    Note: You will not be able to edit any QuickBooks Online default tax rates.
  5. In the Edit tax rate window, change the rate. You can also change the name if you like.
  6. Select the Effective date, if required, this will be the date from which the rate change will take effect, then select Save.
  7. Turn the On or Off switch beside the tax rate you want to make active or inactive.

Edit a tax agency name

You can edit a tax agency’s name through the Edit tax settings page using manual tax only. However, your sales forms will still show the old or initial name you’ve entered. If you would like a different name to show on your sales forms, you'll need to create a new tax agency.

To edit your tax agency's name, follow these steps:

  1. Follow this link to complete the steps in product Open this link in a new window
  2. Next to Tax, select the ▼ dropdown, then select the agency you want to edit.
    Note: You can edit only custom tax agency created by you.
  3. Select the Edit [agency name] ▼ dropdown, then select Edit settings.
  4. Edit Tax agency name, then select Save.

Results

Your tax settings now reflect the updated percentages or names for all newly created transactions. Reports for the current period will display data for both the old and new rates if transactions exist for both.

Next steps

Review your recurring templates to ensure they are updated with the new tax rate.

Related links