Multiple Sales Tax Rates based on Dollar amount

anyone? This has HAD to have come up before...

AFAIK QB cannot do this in the normal way. You can setup a tax item for

6.5%, one for 6% and setup a No Tax item. On an invoice with a line item for $10,000 cut it in half by using $5000 on the first line for the item. Then enter the 6.5% tax item. This will calculate tax on $5000. Next enter the same sale item again but this time for the remaining $5,000. Next enter the 6% tax item. This will calculate tax on the balance. Its not as neat but its a feasible workaround and the tax will still be recorded to your Sales Tax Payable ledger.

I forgot to say that in order to do the separate line item tax entries you'll need to change the customer tax (the one showing at the bottom of the window) to No Tax or Zero Tax first. Otherwise it'll flag you that your standard 6.5% is already in use and it'll also continue to calcluate the

6.5% on the invoice total.

Thanks. But how do you apply a different tax rate per line. On my invoice I have a tax column but it only specified Tax or NoTax.

You don't You enter the item you sold and the 5k max for the higher rate and mark the item taxable The next line is a sales tax ITEM you set up in the item list, such as 'California 6.5 base tax rate' valued at 6.5% The next line is the balance of the sale, marked taxable. A fourth line is the sales tax item you set up in the item list, such as 'California 6 percent tax', valued at 6%.

If you have multiple items above the tax item, you have to use the subtotal function - otherwise the sales tax item only includes the line directly above it.

You MUST use a zero rate sales tax code at the bottom of the screen, to default taxable rate to zero percent.

L reiterated my previous post but in case you are confused, you must setup new Sales Tax Items inside your Item List.

Go to Item List, New Item, Sales Tax Item, enter the rate and agency its payable to. You'll create 3 of these:

1. 6.5% Sales Tax
2. 6% Sales Tax
3. No Tax (if it doesn't already exist)

Now, on an invoice:

*First go to the bottom and change the tax rate to No Tax. Now to enter items: Expensive Widget .5 (qty) 10,000 (cost) 5,000 6.5% Sales Tax (it will calculate on the $5,000 automatically) Expensive Widget .5 (qty) 10,000 (cost) 5,000 6% Sales Tax (it will calculate on the above automatically)

If you have a multiple sale item invoice then you'll need to use subtotals as L stated:

*Set bottom tax rate to No Tax Cheap Widget 1 (qty) 100 (cost) 100 Cheaper Widget 1 (qty) 50 (cost) 50 Expensive Widget .5 (qty) 10,000 5,000 Subtotal (this is a line item entry found in your Items List) 6.5% Sales Tax Expensive Widget .5 (qty) 10,000 5,000 6% Sales Tax

Thanks....