Selling Tax Exempt Items

If your state's tax law allows you to exempt certain items from the sales tax calculation, you can make this exemption automatic when you set up the non-taxable items. Each state has different rules about what is and isn't taxable. For example, some states exempt sales of clothing from sales tax. Find out the rules for your state, and then set up your items accordingly.

Open the Item list by selecting Lists, Item List from the menu.

Double-click the item that you want to make tax exempt. The Edit Item window appears.

Change the Tax Code to Non to indicate that this is a non-taxable item.

Click OK.