---
title: Sales Tax
description: Define sales tax codes and rates, with automatic ZIP code lookup.
url: "https://theasst.com/docs/sales-tax/"
updated: "2026-10-06"
category: Setup / Sales Setup
---

# Sales Tax

Sales Tax defines the tax codes used across TBA -- on [Clients](https://theasst.com/docs/adding-a-new-client/), items, and orders -- and feeds the [Sales Tax Liability](https://theasst.com/docs/sales-tax-liability/) report.

![Sales Taxes list with AL, AR, FL, GA, LA, MS, NC, and TN Sales Tax codes and their rates](https://theasst.com/wp-content/uploads/2026/09/salestaxlist.webp)

## Tax Item vs. Tax Group

A **Tax item** is a single rate; a **Tax group** combines multiple tax items into one (e.g. state + county + city). Each has a name, description, and a **Sales tax agency** (the vendor you remit collected tax to). Information for each sales tax agency is entered in the [Vendor list](https://theasst.com/docs/vendors/).

![Sales Tax detail for FL Sales Tax with rate, tax agency vendor, and ZIP code lookup](https://theasst.com/wp-content/uploads/2026/09/salestax.webp)

## ZIP Code Lookup (optional)

Click **Add a ZIP Code** to map ZIP codes (or ranges, like "701" for every ZIP starting with 701) to this tax code — used to automatically determine the right sales tax code for a client or order based on delivery address. A specific 5-digit ZIP or ZIP+4 entered elsewhere always takes precedence over a shorter, broader entry.

## The Tax List and Fields

The list shows each code’s **Name**, **Rate**, and **Description/notes**. Click one to edit it, or **Add new**.

- **Sales tax record type** — *Tax item* or *Tax group*.
- **Name** and **Description**.
- **Sales tax agency (vendor)** — the [vendor](https://theasst.com/docs/vendors/) you pay the collected tax to. Create the agency as a vendor first.
- **Rate** — the percent, for a tax item.
- For a **Tax group**, the table of its member tax items (with each one’s rate); add items to the group from the *Select Tax Item* list. The group’s rate is their total.
- **ZIP Code** list — add as many as you like. Enter fewer digits to match a range (for example “701” matches every ZIP starting with 701).

## Where the Code Is Used

- A client’s default code is set on [Client Details](https://theasst.com/docs/client-details/). When a client has a delivery address, TBA can suggest the right code from the ZIP lookup.
- Each [quote](https://theasst.com/docs/quotes/), [order](https://theasst.com/docs/sales-service-orders/), and [invoice](https://theasst.com/docs/invoices/) picks one code, which can be overridden per document, and each line is marked taxable or not.
- Totals feed the [Sales Tax Liability](https://theasst.com/docs/sales-tax-liability/) report, which shows what you owe each agency.