sales tax calculating incorrectly since mid jan 2022

Thanks for bringing this up in the Community page, @karwhit.

I can see the urgency of fixing your tax rate to file and pay your taxes in QuickBooks. 

The program automatically calculates the total tax rate for each sale based on the following:

• Your customer's tax exempt status
• Where you sell and where you ship
• What you sell

For now, I'd recommend reaching out to our customer support again. This way, they can provide you updates about the situation and fix the tax rates. 

Here's how to connect with them:

1. Click the Help menu in the upper-right hand corner and click Talk to a human.
2. Type in "Talk to a human", then press Enter.
3. Look for I still need a human and click on it.
4. Select Get help from a human.
5. Choose between Chat with us, Schedule an appointment, or Have us call you.

While waiting, you can manually override the sales tax of your invoice and enter the correct tax rate. Let me show you how.

1. From your invoice, click the See the math or the Total tax amount hyperlink to see the breakdown of the taxes.
2. Click the Override this amount hyperlink.
3. Enter 9.75% under the Rate column and select Other as the Reason, then click Confirm. 

For more details about sales tax in your QuickBooks Online (QBO) account, check out these articles for the complete details:

• Learn how QuickBooks Online calculates sales tax
• Set up and use automated sales tax in QBO

Once you’re all set, you can now file your sales tax return in the program.

Let me know if there’s anything else you need help in managing your taxes or QBO account, karwhit. I’m more than happy to help you again.

I still don't have this issue corrected- I just don't understand why I can't talk with someone that works on this matter. Our location has not changed and our sales tax definitely didn't go down and it was working correct for over a year and all of a sudden it changed all my invoices from Jan.1,2022 to the incorrect sales tax. I have spent hours editing each invoice, sales receipts, credit memos, and sales refunds to the correct amount but it does not help me get the money we lost for the incorrect sales tax write off that we had to do. I just want this fixed and I figured almost a month would be long enough. Everytime I call I get keep your phone lines open and we will have that Representative  contact you. I am still waiting- Quickbooks has no problem charging me each month but I have a problem paying for something that is not correct. HELP PLEASE!!!! I am so frustrated with all of this  

I understand the frustration and I also want this fixed since you need to pay sales taxes soon, karwhit.

QuickBooks will automatically change the sales tax rate if you're using the Automated sales tax function. You can check with your state for an update.

If there's no update with the rate, you can edit it in QuickBooks. Then, select the old rate. 

Here's how:

1. Go to Taxes.
2. Under Related Tasks, select Add/edit tax rates and agencies.
3. Select the rate you want to change from the Sales Tax Rates and Agencies table, then select Edit.
4. Edit the tax rate you want. You can also change the component name if you like.
5. Click Save.

When you edit a sales tax rate you use on templates, you need to select it again. Otherwise, it won’t apply any sales tax rate.

Also, when you edit a rate, you must set an effective date. You can refer to this article to learn what to do when you modify the rate: What happens when you edit sales tax rate.

Once done, check again your transactions, and make sure they have the correct sales tax rate. If there's a need to make an adjustment to your sales tax due, here's a guide for you: Create or delete a sales tax adjustment.

Let me know if you have follow-up questions by commenting below. I'll stay around until you're able to correct the sales tax rate.

Doesn't seem that this issue was fixed because I have the same issue. All tax information is correct but it is not calculating properly. This is  SERIOUS ISSUE!

I know how unpleasant it can be when something isn't calculating correctly, Triple T.

QuickBooks Online automatically calculates the total sales tax rate based on the following factors:

• Your customer's sales tax exemption status
• The location where you sell/ship
• type of your service or product

Since the calculation is inaccurate even though the tax information is correct, I recommend contacting our customer care support. They can update you on the situation and help resolve the tax rates. Please follow the steps provided by my colleague above in reaching out to our support.

Furthermore, here are some articles for more details about how sales tax works in QBO:

• Set up and use automated sales tax in QuickBooks Online.
• Learn how QuickBooks Online calculates sales tax.

Feel free to visit the Community with any concerns or questions. We are always available and eager to help.

I am having this same issue, and I added a custom sales tax rate for all invoices after speaking with a Quickbooks rep. It is calculating the sales tax correctly on the invoices, however, under the "Sales Tax Payable" or "Sales Tax Owed" on the main sales tax page, it is miscalculating the total sales tax due by 2.2%. Even though the invoices are calculating the sales tax correctly. This is very frustrating, and I am having to make multiple adjustments to the sales tax due. Can someone please help me figure out how to fix this???

Hi, hondaspec7. I know you like to stay on top of your taxes. Let's go over certain details to clear up a few things after changing the sales tax rates in QuickBooks Online.

Keep in mind that the changes you make will update all rates except those in previous transactions and existing transactions that used the previous rate are unaffected unless you edit the transaction and specify a different sales tax rate. 

Therefore, the calculation of your sales tax payable in a given period includes past transactions at the old rate. Thus, the adjustments you created are necessary to correct the amount due. You can check out this article for more information about sales tax adjustment: Create or delete a sales tax adjustment in QuickBooks Online.

I've added this link as a future reference once you're ready to file your sales tax return and record your tax payment in QuickBooks Online.

Feel free to get back to this thread if you need assistance with other tax-related concerns. I'll be here to help.

I have started using a company called Zamp. They pull the transactions from QB. And no matter what QB charges they calculate correct rates bases on the product or service and remit the sales tax return. This way I do not have to worry that QB tax rates are not incorrect. There might be small adjustments at the end of the month but it it worth peace of mind to make sure I pay and remit the correct taxes. They have sat with me and have went over all my product categories to make sure they are taxes correctly. Assisted me by video chat with migration. This service has been very helpful. I just migrated to Zamp from Avalara where there is little to no customer care. Also Avalara's rates went up so much that this service became unaffordable. 

I just share this info because remitting sales tax to several states has because a huge chore and has probably been the most expensive and time consuming issue in my business. This is the first time a company has spent time with me and have asked the right questions. Good luck and I understand your frustrations!