Add a tax category to products and services

Learn how to add a tax category to your products and services in QuickBooks Online.

Instead of manually calculating tax, let QuickBooks do the work for you. Add a tax category to your products and services to accurately calculate how much to tax your customers. Here’s how.

Step 1: Set up your tax

The rules on how to tax a product or service can change depending on what you sell and where you sell it. QuickBooks keeps track of those tax rules, so you don’t have to.

Here’s how to set up your tax so QuickBooks can determine the rules that apply to you.

Step 2: Find out what products or services need a tax category

Important: If you’re still not sure which tax category to assign, ask your accountant for help. They have the best insights into what tax categories your items need. If you don’t have an accountant, we can help find an Accountant (for your region) near you.

Step 3: Assign a tax category to a product or service

When you’re ready, here’s how to assign your items to different tax categories.

1. Follow this link to complete the steps in product
2. Look for the item you want to assign a tax category to, then select Edit.
   Note: If you want to assign a tax category to a new product or service, here's how to add a new inventory item.
3. Select the Tax▼ dropdown menu, then find and choose the specific tax that fits your item.
   Complete your item’s info:
   • For an inventory item, complete these steps.
   • For a non-inventory or service item, follow these steps.
4. Save your item.