Learn how to add tax categories to the things you sell so you can track tax more accurately.
Rules for how to tax a product or service can change depending on what you sell and where you sell it. QuickBooks keeps track of all those tax rules so you don’t have to.
After you set up where you charge tax, here’s how to map your items to the right tax categories. This lets QuickBooks calculate the accurate tax amount based on what exactly you sell to your customer.
Step 1: Learn what products or services need tax categories
Not everything needs special tax categories.
Step 2: Assign tax categories
When you’re ready, follow these steps to start mapping your items to different tax categories.
- Select Sales, then Products and Services.
- Select New, then choose the type of item you need to add. If you need to update an existing item instead, find the item then select Edit.
- Select the tax category ▼ dropdown menu, then find and choose the specific tax category that fits your item.
Not sure which tax category to choose?
We know this can get a bit complicated. If you’re still not sure which tax category to assign, don’t hesitate to ask your accountant for help. They have the best insights on what tax categories your items need.
- Complete your item’s info:
- Save your item.