Sales tax is not calculating correctly for Arizona. How do I fix this issue?

I’ve run into this with QBO before. The issue is usually that QuickBooks Online defaults to origin-based tax unless you enable destination-based sales tax for the state. For Arizona, you need to make sure your company tax settings are set to calculate by destination address, and that your customer addresses are complete with city and ZIP-QBO relies on that to pick the right rate.

Also, check if you’re using the automated sales tax feature; if it’s off, QBO won’t pull the correct jurisdiction rates. Sometimes, even after changing settings, you might need to recreate the tax rule or clear old tax info on the customer record for it to calculate properly. It’s annoying, but fixing the destination-based setting usually solves it.