I see one of my transactions has Tennessee tiered taxing.
- On the Transactions tab, locate the transaction.
- Click the Transaction to see more detail.
- Click the Edit button.
- Select the Lines tab.
- Click on the icon with the paper and the pencil for one of the lines showing this issue.
- The Quantity field is on this page.
An example of the Tennessee tax cap for a single item is listed below:
- State tax rate of 7% is applicable to all amounts.
- Local tax rate between 2.25% and 2.75% is applicable between $0-$1600 for all items. (This rate is dependent on the local city or county rate.)
- State single article tax rate of .0275% is applicable for all single items between $1600-$3200.
- Single item sold for $4000 to Nashville
- State tax: $4000 x .07 = $280
- Local tax: $1600 x .0225 = $36
- Single Article tax: $1600 x .0275 = $44
- Total tax: $360
- Two items sold for $2000 each to Nashville
- State tax: 2 * ($2000 x .07) = $280
- Local tax: 2 * ($1600 x .0225) = $72
- Single Article tax: 2 * ($400 x .0275) = $22
- Total tax: $374How Does the Tennessee Three Tiered Tax Work?