Assign a Sales Tax to a Department

After you have created a sales tax and a department, it's time to link them together. Let's say if shoes are charged a different tax rate than the default location sales tax, you could assign a specific sales tax for the shoes products by linking the "Shoes" department and that particular sales tax together. This article teaches you how to assign a sales tax to a department.

Click the "Settings" button in the navigation menu on the left. Click "Sales Tax" in the expanded menu under "Settings":

You will be brought to the "Sales Tax" page. In the top section on the page, you should see a section called "Locations". For each location, there will be a default tax rate. In order to override this default tax rate and set a specific tax rate for each department, click "Edit Tax Overrides" button under the "Action" column:

If you click the "Edit Tax Overrides" button of "nyc", then you will be directed to the page "nyc Sales Tax" which includes a list of all the overrides. To add a tax override, click the "ADD TAX OVERRIDE" button at the top-right corner:

In the pop-up window, select the "Department" and "Tax" that you want to link together. In this case, the department "Dresses" is assigned a sales tax called "Lux Tax". If at this point, you don't know or confuse about setting up a department and a sales tax, please click the links below:

1.  How to Create a Department/ Sub-Department

2. How to create a Sales Tax

After clicking the green button "Save", the tax override is added and should appear in the "Sales Tax Overrides" list.