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22 helpful votes

Add sales tax categories to your products and services

Learn how to assign tax categories to the items and services you sell.

Make life easier when it’s time to pay your sales tax. Assign tax categories to your inventory. Tax categories help you calculate sales tax more precisely. This way you'll charge the right sales tax for your location and item type.

Assign a tax category to a product or service

  1. Go to the Gear icon and select Products and Services.
  2. To create a new item, select New and then the item type. Or, select Edit for one of your existing items.
  3. On the “Product/Service information” window, select the Is taxable checkbox.
  4. From the Sales tax category drop-down menu, select a category.
  5. From the What you sell drop-down menu, select an item type.Tip: If you’re not sure what to pick, check with your accountant or find an accountant who can help.
  6. Select Save and close.

To learn more, find out how to set up sales tax in QuickBooks Online.

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