Understand sales tax in destination and origin states in QuickBooks Online

Learn how QuickBooks Online calculates sales tax in destination and origin states.

QuickBooks Online automatically calculates sales tax based on your company address and the customer's shipping address. It applies the correct tax rate based on where you provide the item.
Note: If you don’t see the automated sales tax local rate you’re expecting in a sales transaction, it might be because of the state destination and origin rules.

Understand destination and origin tax rules

There are two types of sourcing rules, called “destination-based” and “origin-based.” Most states use destination-based sourcing, but there are a few states that use origin-based sourcing.

Know which states use origin or destination rules