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Products and Services marked as non-taxable do not add tax when the tax check box is turned on in estimate or invoice. The taxable subtotal increases but in the "show math" section it just shows the taxable rate as 0%.
-reason for the issue-
I mostly install jobs in idaho which has no tax on labor and for material if is a permanent item installed on the property this is looked at as an improvement to real property and so the state's use tax must be built into the price. So most of my products and services are setup as nontaxable by default because most of my work is in Idaho. I do also install jobs in Washington state. Washington state sales tax is charged on the entire job as a whole including tax on all material and labor. Since i bid less in Washington state i usually just turn the tax check mark on and it adds on sales tax. This no longer adds tax after the new tax update 2 weeks ago. Please address this bug in your system.
Hello there, GREATNORTHFENCING. Sales tax rules for products and services vary from state to state.
That said, I would like to know if are you using the automated sales tax feature in QuickBooks Online or manually applying tax rates? If you’re using automation, QuickBooks calculates whether a service item is taxable in each state based on the tax categories set up for the item.
Keep in mind, some items may have special or reduced rates. You can edit taxability settings directly in the Products and Services page. Additionally, if needed, you can manually add sales tax to invoices or sales transactions, even when items are marked taxable.
Please see the screenshot attached below:

You can consider checking this article for your future task regarding sales tax feature: Set up and use automated sales tax in QuickBooks Online.
For more guidance on identifying tax-exempt transactions or customers, check out this resource: Understand and set up sales tax exemptions in QuickBooks Online.
Please add a comment below or keep posted if you have additional questions or concerns about managing your tax data in QuickBooks Online.
This answer doesn't address my estimate/invoicing issue, you can see in the picture the taxable amount is correct but it is not added in the "see the math area". The only categories im using for sales tax is 'taxable" or "non-taxable"
Both items have the tax check box clicked on in the estimate
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