If you have some items in your business that are taxable and some that are not, you don’t have to apply tax to each item individually. Tax can be applied to select categories – or applied to all items except select categories.
To create tax categories:
- Decide which item categories need to be taxed or excluded from tax. For example, if all clothing and shoes are taxed, use the clothing and shoes categories. If only a few items are taxed, create a category with just those items.
- Determine the minimum taxable amount and maximum tax amount. For example, if only items above $110 are taxed.
- Make note of all relevant taxes, including county, city, state, etc. This may vary in different store locations.
- With the above information on hand, contact your agent to set up the rest for you.
Note: If items only above $110 are taxed, minimum taxable amount must be $110.01. Otherwise, items that are exactly $110 will be taxed.
- To adjust tax during individual sales, see Adjust Tax During Checkout.
- For a button that calculates tax when placing orders, see TaxJar Integration.