cancel
Showing results for 
Search instead for 
Did you mean: 
Highlighted
Intuit

Set up where you collect sales tax in QuickBooks Online

Learn how to set up where you collect sales tax so you can track your sales tax automatically in QuickBooks Online.

QuickBooks Online keeps track of your state’s tax laws to accurately calculate sales tax and returns. All you need to do is tell QuickBooks where you collect sales tax. If you charge sales tax outside of your state, you can add other tax agencies you pay. Here’s how.

We’re rolling out a new sales tax system for all QuickBooks users. If you use manual sales tax, check if you can now switch to automated sales tax. If you don’t have the option to switch, don’t worry. It should be available for you soon.

Step 1: Double-check your business address

Make sure your business address is correct, so QuickBooks can set up the right tax agency for you.

  1. Go to Taxes, then Sales Tax.
  2. Select Set up sales tax.
  3. If you already set up your business info in Settings, you should see your physical business address here. If you haven’t done that yet, you can add your business address.
  4. Review your address and then select Next.

Note: In your next invoice or sales receipt, QuickBooks will use your physical business address as the default location of sale. If you need to, you can always change the location on the transaction.

Step 2: Tell QuickBooks if you pay other tax agencies

QuickBooks asks you if you charge sales tax outside your state. Keep in mind, you only need to charge sales tax in another state if you have an economic nexus in it.

Important: Not sure if you need to file to other tax agencies? Talk to your accountant or tax adviser. If you don't have an accountant, we can help find one near you.

  1. Select Yes or No.
  2. If you selected Yes, add the other tax agencies you pay.
  3. When you’re done, select Next. Then, select Exit ❌.

Step 3: Tell QuickBooks how often you file

You’re almost finished. Just make sure to set up your filing frequency so QuickBooks can remind you when it’s time to file.

Tip: Not sure how often you should file? Check your sales tax business registration or go to your tax agency’s website to know your filing frequency.

  1. Go to Taxes, then Sales Tax.
  2. Select the Filing frequency ▼ dropdown, then choose how often you file.
  3. When you’re done, select Save.

That’s it. In your next invoice or sales receipt, QuickBooks will do all sales tax calculations for you. You can learn more about how QuickBooks automates sales tax calculations.

Add a new tax agency

You can add another tax agency even after you already set up automated sales tax. Do this if you need to charge sales tax for your out-of-state transactions.

  1. Go to Taxes, then Sales Tax.
  2. Select Sales tax settings.
  3. Select Add agency.
  4. Select the Agency ▼ dropdown, then look for the tax agency you want to add.
  5. Select the Filing frequency ▼ dropdown, then choose how often you file.
  6. Add the Start date.
  7. Select Save.

Was this helpful?

You must sign in to vote, reply, or post

Need to get in touch?

Contact us