Sales Tax Rate is not calculated automatically

Good day, kavita444.

QuickBooks Online calculates the correct tax rate on each sale based on the following: 

• Your customer's tax exempt status
• Where you sell and where you ship
• Your service or product's tax category

Let's check your customer's tax status. This might be one of the reasons why the sales tax isn't calculating. 

Here's how:

1. Go to Sales > Customers.
2. Click the customer's name and select the Edit button.
3. In the Customer Information window, click the Tax Info tab.
4. Check the customer's tax status. 
5. Hit OK. 

Here's a sample screenshot for a visual guide:

To determine if your sale is exempt from tax, you can read this article: Conducting non-taxable sales.

For checking the product/service tax category, you can follow these steps:

1. Click the Gear > Product and Services.
2. Select the product or service item.
3. In the Product/Service Information window, check the Sales tax category section if it's Taxable or Nontaxable.
4. Click Save and close.

After the steps above, try to create the transaction and check to see the sales tax information.

I'm adding these articles for more information:

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

Please feel free to leave a comment on this thread if you have more questions or other concerns. I'll be right here to help you out. Take care!

@kavita444 ,

Try creating invoices within QB to check if they calculate taxes. If yes, then the issue is in the third-party app. If no, the issue is in QB.