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Edit tax rate in QuickBooks Online

by Intuit Updated 4 weeks ago

Learn how to edit tax rates in QuickBooks Online.

The amount of tax you collect may may increase or decrease. Update your tax rates to make sure you collect the right amount. Here’s how.

What happens when you edit a tax rate?

Here are a few things you need to know before you edit a tax rate.

  • Changes you make will update the rates everywhere except for any in past transactions.
  • Existing transactions that used the earlier rate remain unchanged unless you edit the transaction and specifically select a different tax rate.
  • If you create a new transaction but use dates in the past, the transaction uses the new rate.
  • After you edit a rate, the earlier rate can no longer be used.
  • For recurring templates that use the changed component, new transactions created with the template use the new rate. Existing transactions created with the template and the earlier rate remain unchanged.
  • If you edit a tax rate you use on a template, you need to go edit your template again to to add the updated tax rate.
  • Reports show the data for both rates (before and after) if there are transactions for both the rates in a particular period.

To edit tax rates:

  1. Go to Taxes. If you have multiple tax agencies, in the top-left ensure that the correct tax agency is selected.
  2. Select the Edit Tax dropdown, then select Edit rates.
  3. In the tax rate table, choose the rate you want to change and select Edit.
    Note: You will not be able to edit any QuickBooks Online default tax rates.
  4. In the Edit tax rate window, change the rate. You can also change the name if you like.
  5. Set the Effective date, if required, this will be the date from which the rate change will take effect.
  6. Select Save.
  7. Select Make inactive, beside Save if you want to make tax rate inactive.
  8. To confirm your changes select Yes.

Note: You'll see "Error: To process this credit card transaction, please enter a credit card number. (code:"INDIRECTTAX-15811")" when trying to edit a tax rate that is being used on a recurring transaction that is setup to auto-charge.

To resolve this error:

  1. Creat a new tax rate.
  2. Edit the recurring transactions to use to the new tax rate.
  3. After all recurring transactions are updated to the new tax rate, go to the sales tax settings and make the old tax rate inactive.

Edit a tax agency name

You can edit a sales tax agency’s name through the Sales Tax Centre using manual sales 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, here's how:

  1. Go to Tax.
  2. Next to Tax, select the dropdown, then select agency you want to edit.
    Note: You can edit only a 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.

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