cancel
Showing results for 
Search instead for 
Did you mean: 
Highlighted
Not applicable

Can quickbooks calculate sales tax in different states with different rates?

 
1 Comment
QuickBooks Team

Re: Can quickbooks calculate sales tax in different states with different rates?

Nice to see you here in the Community, @amy40

 

Yes, the program calculates sales tax in different states with different rates. If you're using the Manual Sales Tax Center, we consider these three components to calculate your sales tax rate:

  • The state where you're registered to collect sales tax.
  • The physical address of your business.
  • The physical address listed on sales receipts or invoices.

 

Your tax situation will vary depending on what state you're located in and where you're selling. You aren't required to collect sales taxes if you don't have a presence in a state. Every state defines sales tax rules differently. With this, I'd suggest contacting your state tax authority to get details for your specific situation. For more information about this, read through this article: Sales Tax Basics

 

Once verified, you can now set up sales tax rates and agencies. Please take note that tax agencies are the cities and county jurisdictions that you pay. The program provides the calculated amount that you owe to each agency and the due date. I'll guide you through the steps. 

  1. Go to Taxes from the left menu. 
  2. Choose Add/edit tax rates and agencies under the Related Tasks list on the right. 
  3. Click New.
  4. Choose either a single or a combined tax rate.
  5. Enter a name for the tax, the agency you pay, and the percentage for the rate. 
  6. Click Save.

 

You can repeat the process above for other tax agencies. In the Sales Tax Center, you can add and edit tax agencies, rates, and settings. To learn more about this process, check out this article: Set Up Sales Tax. After that, you can now apply these rates to your sales transactions. 

 

If you're unable to see the settings mentioned below, you might be using the Automated Sales Tax feature. In this feature, we look for additional information to calculate your sales tax aside from the three components in the Manual Sales Tax Center: 

  • The state where you have nexus and are registered to collect sales tax.
  • The product mapping you have associated with the products or services you are selling.
  • Your customer's exemption status. 

 

To help you add the sales tax rates and agencies, visit this link: Set Up and Use Automated Sales Tax. In this article, you can also enter a customer's address, check sales tax exemption, and learn more about special tax scenarios. 

 

Additionally, you can click the Reports link in the Sales Tax Center. This lets you view the Sales Tax Liability report the Taxable customer report. See the screenshot below for your visual reference. 

SalesTaxReports.PNG

 

I'll be right here to help if you need further assistance. Have a great day, @amy40

Need to get in touch?

Contact us