The Tax Settings are one of the most important sections of your settings. Each category has a tax category assigned to it that determines the tax rate for the items in that category. There is also the option to mark a category as tax exempt.
The two examples below show the differences between a store with items that have different tax rates and a store that has a blanket tax rate for all their items.
Example of a store with different tax rates:
Screenshot of Tax Settings with different tax rates
Example of a store with a blanket tax rate:
The percentage you enter should include federal, state, county and local taxes combined. They should only be broken apart in scenarios where different percentages will be charged due to the type of inventory being sold.
To add a tax category, click the green plus sign, fill in the "Tax Category Name" field and click the "Save" button.
Then fill in the tax percentage for the new tax category.