Learn how to edit tax rates in QuickBooks Online.
The amount of tax you collect may may increase or decrease. Update your tax rates to make sure you collect the right amount. Here’s how.
What happens when you edit a tax rate
Here are a few things you need to know before you edit a tax rate.
- Changes you make will update the rates everywhere except for any in past transactions.
- Existing transactions that used the earlier rate remain unchanged unless you edit the transaction and specifically select a different tax rate.
- If you create a new transaction but use dates in the past, the transaction uses the new rate.
- After you edit a rate, the earlier rate can no longer be used.
- If you edit a tax rate you use on a template, you need to go edit your template again to to add the updated tax rate.
- Reports show the data for both rates (before and after) if there are transactions for both the rates in a particular period.
To edit tax rates:
- Go to Taxes. If you have multiple tax agencies, in the top-left ensure that the correct tax agency is selected.
- In the top right-hand corner next to Add tax, select the Edit Tax dropdown then Edit rates.
- In the tax rate table, choose the rate you want to change and select Edit.
- In the Edit tax rate window, change the rate. You can also change the name if you like.
- Set the Effective date, if required, this will be the date from which the rate change will take effect.
- Select Save.
- Select Make iactive, beside Save if you want to make tax rate inactive.
- To confirm your changes select Yes.
