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July 20, 2025
Question

MD Tech Tax on Invoice

  • July 20, 2025
  • 1 reply
  • 7 views

MD just passed a 3% tech tax, separate from the 6% sales tax.  How do we generate invoices with items separated to be taxed at the different rates?

1 reply

QuickBooks Team
July 20, 2025

Assigning different tax rates for a specific item in an invoice is currently unavailable in QuickBooks Online (QBO), Michael.

 

As a workaround, you can create separate invoices for items that have different rates. To begin with, let's create a custom MD Tech tax rate.

 

Here's how:

 

  1. Go to My Apps and select Sales tax settings. In the Add agency dropdown, click Add custom rate.
  2. Choose Single, then enter the Name of the custom rate.
  3. Select the Agency where you file payments.
  4. Enter the Rate and click Save.

 

 

After that, create one invoice for items with a 3% MD Tech tax rate and another invoice for items with a 6% sales tax.


On the other hand, you can share your feedback directly with our product engineers to suggest adding the ability to create an invoice with multiple tax rates in the future.


Here's how to send:
 

  1. Go to the Gear icon.
  2. Select Feedback and enter your suggestion.
  3. Hit Next.

 

Click the Reply button below if you have questions about QuickBooks Online. We're here to help in any way we can.