Thank you for joining the thread, @jthomas222.
I appreciate you taking the time to express your concerns about the incorrect sales tax for your customer's address. Let me provide you with some information that may help you with how QBO calculates sales tax.
To start with, QBO calculates tax rates for each sale based on your customer's tax-exempt status, where you sell, and what you're selling. Also, as my colleague said, not all customers are required to pay sales tax, including tax-exempt organizations like schools, churches, and non-profits. However, tax exemption rules vary by location and QBO may still calculate taxes for tax-exempt customers. To ensure accurate tax calculations, categorize items correctly and verify the customer's address for each transaction. QuickBooks will then follow applicable exemption rules based on the items sold and the customer's address.
For detailed information, refer to this article: Understand and set up sales tax-exemptions in QuickBooks Online.
Moreover, QBO tracks all the rates you charge based on the location of the sale. Please note that some states require the seller to charge tax based on the business location even if the product is shipped to another address in your state.
On the other hand, You can also use the See the Math or Edit Tax option to override or manually adjust the tax amount and see how QBO gives you a detailed breakdown of the sales tax. For reference, check this article: Learn how QuickBooks Online calculates sales tax.
I also suggest reviewing your setup such as address, items, and taxability. However, if you're experiencing the same issues, I suggest contacting our support team. They have the necessary tools to check your account and initiate a screen-sharing session to investigate this issue.
Lastly, I'll add this if you want to record, adjust, and delete sales tax payments in the tax center: Manage sales tax payments.
Feel free to click the Reply button below if you have any other questions about the incorrect sales tax. I'll be here to help you in any way I can.
