You want all Freight line items to be non taxable.
- Create a tax rule making your freight tax code non taxable or use a different freight code that matches your need
- Alternatively, use the NT tax code for your Freight item
Note: NT will not show as freight on reports, to see value categorized as freight use the correct freight tax code, and add a tax rule if needed to make non taxable. Most customers find that the issue is that they are using an inappropriate tax code, so it is showing unexpected tax. Using a freight tax code that matches your freight description resolves the issue.